POLL: Escalation of collection values?

[Eric Seffinga]

Whether you started in the 70s, the 80s, 90s, the 2000s, we've all watched over the years as prices in different facets of the OA market have risen on much of our beloved art collections. We talk about these valuation changes all the time.

 

I thought it might be an interesting (if possibly pointless) exercise to compare guesstimates of money spent on the pieces currently in our collections vs total current valuation for those pieces large group of people.

 

The only rule is to only base the numbers on the pieces you currently own. Not what you bought way back when and sold for a mint, or for a loss. Just what is in your hands right now. How much do you have in on it, and how much is it as it currently sits?

 

Given that this is done anonymously, the point is simply to see what a comparison of the polls come back looking like after a week or so. From newcomers to old timers, the more folks that participate, the more interesting it will be. If you know folks that don't post here that often, invite them to come on board. Maybe get some fresh blood to participate in other conversations here as well.

[Eric Seffinga]

Wanted to add, (because it's that time of year for me) it's always good to take some kind of periodic stock of what's new and of valuations to update insurance policies and the like.

 

I'm using this as an opportunity to do that as well. I hadn't planned on buying any art this year, and well... you know.

[Mighty Hal]

Fun post and poll. Thanks!

[comix4fun]

I remember talking to friends of mine back in 2008, when I was considering a large purchase, if I should or shouldn't do it.

 

The fact that turned the decision in favor of doing it was I had just reached the point where, from selling and trading and pulling profit out of my collection here and there over the years, I had reduced my actual out of pocket cost to less than $5,000 for everything in my entire collection.

 

It allowed me to rationalize that all those good financial decisions had allowed me to make one really crazy (stupid) decision. Kind of like a hall pass for buying something at a relatively obscene valuation.

 

 

[vodou]

I had just reached the point where, from selling and trading and pulling profit out of my collection here and there over the years, I had reduced my actual out of pocket cost to less than $5,000 for everything in my entire collection.

Very cool, netting out to $5k out of pocket (at least back then, where are you today?) I wish I could write the same. Did a lot of selling late 90s to around 2005 and then realized I was churning to my own detriment. And stopped. But kept adding. All good but my out of pocket is pretty deep. Not an amount I'm uncomfortable with, but definitely the opposite end of $5k

[buyatari]

I am guessing for most that this price will be hard to calculate.

 

For example

 

If I buy 3 pieces for 10k (argument sake equal value) direct from an artist and sell 1 of the 3 for 8k directly to someone upon arrival would you say that those two remaining pieces have a cost of 2k ,6k or 10k ?

[comix4fun]

I had just reached the point where, from selling and trading and pulling profit out of my collection here and there over the years, I had reduced my actual out of pocket cost to less than $5,000 for everything in my entire collection.

Very cool, netting out to $5k out of pocket (at least back then, where are you today?) I wish I could write the same. Did a lot of selling late 90s to around 2005 and then realized I was churning to my own detriment. And stopped. But kept adding. All good but my out of pocket is pretty deep. Not an amount I'm uncomfortable with, but definitely the opposite end of $5k

 

 

In retrospect I should have gone into debt, or sold other stuff and kept all my art.

 

 

[comix4fun]

I am guessing for most that this price will be hard to calculate.

 

For example

 

If I buy 3 pieces for 10k (argument sake equal value) direct from an artist and sell 1 of the 3 for 8k directly to someone upon arrival would you say that those two remaining pieces have a cost of 2k ,6k or 10k ?

 

 

The cost on purchase doesn't change for individual pieces. Your total collection net out of pocket changes, however.

 

[malvin]

I am guessing for most that this price will be hard to calculate.

 

For example

 

If I buy 3 pieces for 10k (argument sake equal value) direct from an artist and sell 1 of the 3 for 8k directly to someone upon arrival would you say that those two remaining pieces have a cost of 2k ,6k or 10k ?

 

None of the above, but I'm being anal about math. For this purpose its $6.666K, which is what you meant by 6K

 

Malvin

[Pete Marino]

I am guessing for most that this price will be hard to calculate.

 

For example

 

If I buy 3 pieces for 10k (argument sake equal value) direct from an artist and sell 1 of the 3 for 8k directly to someone upon arrival would you say that those two remaining pieces have a cost of 2k ,6k or 10k ?

 

None of the above, but I'm being anal about math. For this purpose its $6.666K, which is what you meant by 6K

 

Malvin

 

$6,667

[Buzzetta]

I honestly don't know what art is 'worth' to the underbidder after he has moved on to buy something else. I know what it was worth to me at the time of purchase. That number is easy figure out. Just add up receipts.

 

 

[malvin]

Touche, your answer is even more accurate than mine! But wait, what about shipping, was it 10K shipped?

 

Malvin

[vodou]

I am guessing for most that this price will be hard to calculate.

 

For example

 

If I buy 3 pieces for 10k (argument sake equal value) direct from an artist and sell 1 of the 3 for 8k directly to someone upon arrival would you say that those two remaining pieces have a cost of 2k ,6k or 10k ?

Cost basis is really easy - it's always exactly what you paid (or FMV in a trade or many-pieces scenario). So your example, the piece sold had a cost basis of $3333.33 ($10k/3) and when sold for $8k realized a gain of $4666.66. If you buy more art with some or all of the proceeds (basis only, gain only, or both) that will create a new cost basis for the new piece/s. The other two pieces from the original 3 piece deal still each have a cost basis of $3333.33.