My mom had a first-rate art history education, was an accomplished artist herself, and had a fine eye for talented work by others. How did the art that she collected do as an investment? One example is “Elijah Ascending to Heaven” by “Shalom of Safed” (Shalom Moskovitz) in 1973. The index card in her file says that she paid $315 for it in 1980 (maybe that was even the wholesale price). Adjusted to post-Biden dollars, that’s $1,280 today. The current retail price of this work seems to be 650 Bidies (RoGallery). I.e., the return on investment over 45 years was worse than -50 percent (perhaps closer to -80 percent because the owner would have to sell it to a retailer).
(This is not to say that the rich didn’t get richer. The lithographs of the most famous and expensive 1970s artists, such as Andy Warhol, have appreciated, I think. The art that was accessible to middle class Americans in the 1970s has taken a dive, though, I’m pretty sure.)
Last time I checked (before Biden hyperinflation really begun) Andy Warhol litographs were still below six figures and available for middle class collectors. There were 4 figures Andy Warhol works of art. I am not particularly in love with Warhol’s work, nor do I hate it.
This work has character. I like it even if investors do not.
Art isn’t any different than NFTs or crypto. They’re emperor’s clothes goods. Of course, where do you stop with that and what makes them any different than gold or dollar bills?
Waiting for our blog post on the Boom XB-1 breaking the sound barrier 9 years after receiving funding, the chances of it ever becoming a certified airliner, sonic booms being legalized over a useful route, & the fuel cost.
Is there any indication that she bought this work for an investment rather than because she enjoyed it? Shalom of Safed is an interesting artist, the piece is quite interesting and a few hundred dollars doesn’t sound unreasonable especially if the theme resonates. As an aside, collectables are a risky investment since they don’t generate income and are simply a bet that someone in the future will pay more than you did.
A sample of one piece, is it enough for a general conclusion? Full disclosure, I do not invest in art.
Art is intended go be tax evasion for the rich and not good investment for middle class.