This is a MapHist list message. News: If you don't get messages anymore, go to http://www.maphist.nl for news about the new MapHist Forum o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o +
Joel - We do not advise clients to purchase maps for investment purposes - though we like all dealers invest in old maps and must recognize that they do have investment value, and I am not talking about 3% inflation. As with any physical object, be it a house, a car, or an old map, liquidity is an issue, but it is an issue that anyone purchasing such an object is aware of upfront. Also like any investment, investors in physical objects need a knowledge base regarding what they are buying. Just as one does not randomly purchase stock or houses or cars and expect get rich, one should exercise the same caution in acquiring an antique. Strategic knowledge-based acquisitions however (from dealers and from other venues like auctions) can yield handsome profits over time. If it were not so dealers would all be in the poorhouse. The premise behind fine art investment funds is as sound as and bears a similar risk level as any object asset investment - I see no reason why such funds should not include historical artifacts, like maps, as part of their acquisition portfolios. Kevin From: maphist-boun...@geo.uu.nl [mailto:maphist-boun...@geo.uu.nl] On Behalf Of Joel Kovarsky Sent: Friday, December 23, 2011 1:21 PM To: Discussion group for map history Subject: Re: [MapHist] Alternative Investing 2011 - Mapping a Profit:Cartography and Fine Art Investment - CNBC I think this is different than the point Dorothy Sloan was making, which was seconded by Ed Dahl. The idea that the price of any good rises over time and with inflation is quite different than the recommendation of using old maps as an investment strategy. This business is hardly the equivalent of an index fund, and has none of the liquidity or regulatory constraints that go into financial vehicles (OK, I know recent history questions some of the regulatory issues). I think you tread on very thin ice advising someone to use old maps as a significant investment vehicle. The ILAB (and IAMA) Code of Ethics rightly admonish not to use these materials as "investment schemes." The idea of investing in maps has something in common with investing in art, so that the higher end of the market is likely to yield the best returns over time: you had better have both funding and knowledge to forage that world on a consistent basis. And there are exceptions to everything. Joel Kovarsky On 12/23/2011 12:04 PM, Geographicus Antique Maps wrote: This is a MapHist list message. News: If you don't get messages anymore, go to http://www.maphist.nl for news about the new MapHist Forum o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + Ed - I disagree. "Is my map likely to increase in value over time?" is one of the most common questions dealers are asked. In is not unethical to answer truthfully. While we always encourage our clients to purchase maps first because they enjoy them and not directly as an investment, the answer to this question is "most likely". In the short term, unless you are a dealer or very savvy, it is indeed difficult to purchase a map at a retail gallery and turn a profit, however, in the long term there is significant potential for profit. The historical increase in map value over a considerable time (10+ years) is chartable to anyone with access to historical sales data - which should be pretty much everyone in this list. While certain maps, like the stock market, can bubble in value for short periods of time, the overall and consistent trend is for maps to increase in value as time passes. Most dealers, like ourselves, price maps in accordance with historical retail and auction values for similar items. On such a model a natural increase in value can be reasonably anticipated. Kevin
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