High prices at auctions are an indication that investors are avidly interested in high quality tangible assets which will hold onto their value and are ready to pay extraordinary prices for them even in this market. Two illustrations from the auctions houses:
In Namure in southern Belgium, on Sunday, demand for Tintin, the cartoon reporter, broke national and world sales records, AFP reports. Five hand-drawn pages by Herge raised 1, 172,000 euros (1.57 million dollars) a world record for Herge as well as a national record for cartoon strips books. Buyers came from all over Europe, the United States, Lebanon and China.
Meanwhile, Reuters reports that at Sotheby’s semi-annual sale at Geneva, a virgin blue diamond straight from South Africa, weighing 7.03 carats, sold to any anonymous buyer on May 12, Tuesday, for a record 10.5 million Swiss francs ($9.49 million), including commission, the highest price paid per carat for any gemstone at auction and a new world record price for blue diamonds. The sale price without commission, a record, was $1,349,752, Sotheby’s said.
High prices at auctions indicate misplaced values.
Seldom
Hmmm.
How so?
Wanting to hold onto your savings and not let the government’s policies depreciate it?
Or do you just think people shouldn’t be that worried about losing their savings
There is a bubble in collectibles, art and such, but it’s driven by safety, not financial manipulation. If confidence returns to investing in productive activities, it will collapse as well. Now if one has a few billion in assets, spending millions on a bauble might qualify as “spreading risk,” but it’s hard for most of us to view it in that light.
Actually, my understanding is that the antique market has been hit..
I’ll bet that precious stones hold up better than say modern paintings..
but I haven’t looked into it