Great article on buying art as an investment. 0

[PhilipB2k17]

It’s not specific to original comic art, but most of the discussion applies to our niche hobby. The bottom line? Art is a terrible investment. LOL! 

https://www.artsy.net/article/artsy-editorial-often-ignored-problem-buying-art-investment/amp?__twitter_impression=true

This excerpt is a good example. 

“Say you are a New York City resident who has $10,000 to invest in the auction market. To stay within that budget, you would likely need to limit your maximum bid to around $7,000 to cover the buyer’s premium (25% at most houses: $1,750), New York sales tax (8.875%: $621) and shipping and handling ($629 for argument’s sake, to round out the total). So, your $10,000 allocation is already saddled with a 30% depreciation at the very outset of the investment, significantly weighing on its future prospects. Bracketing aside any expenses for insurance, conservation, or other carrying costs, after five years you elect to sell the same work, and you have the unexpected windfall of an 80% return, or $12,600 from the original hammer price of $7,000. Unless you have negotiated special terms, you will typically owe the auction house a 10% seller’s commission (so, minus $1,260), 1.5% insurance fee (minus $189), photo fee (minus $200), and shipping and handling again (minus $629), for a net total of $10,322. The good news is you have a modest return of $322, but you may still owe the 31.8% in capital gains tax on collectibles on this portion (about $102.40), yielding a net return of about $219 and change.”

And then, the author brings up the capital gains tax. 😬

Edited June 25, 2019 by PhilipB2k17

[suspense39]

thanks for posting!

[alxjhnsn]

Yep, art might be a good long term investment (20 years), but short-term? No way.

[alxjhnsn]

Really good read by the way. Thanks for sharing. 

When I buy art, I tell my kids I'm squandering their inheritance - it's no joke. It's probably better than spending it on going to dinner or a movie, but not much.