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I agree with Dorothy, Ed and Joel. There is good reason for the ILAB's
proscription against suggesting rare books (and maps) are an investment. Aside
from the uncertain economics of "investing" in art, such an approach is
antithetical to collecting.
We, too, hear the investment question in our gallery and our standard reply is
"you get your dividends by looking at and studying these maps. If there is
residual value at the end, treat it as a bonus." We also suggest a minimum
holding period of twenty years to overcome the high transaction costs of the
collectible market, and tell people the best financial results have gone to
those who are the true collectors. They buy the best maps they can afford and
hold them as long as possible. "Investing" in maps or art is a bit like Zen -
you hit the target by not aiming at it.
It is worthwhile to consider a longer history than ten years. If I recall
correctly, when Professor Koeman wrote his little booklet on Blaeu's Grand
Atlas he observed that the price of the atlas went nowhere for two centuries.
It is only in more recent times that prices rose.
The general price increases we think of as continuous really began in the early
20th century (some economists argue the late 19th century), and were preceded
by nearly a century of no inflation or disinflation.
For those interested in the broad sweep of prices I commend David Hackett
Fischer's "The Great Wave: Price Revolutions and the Rhythm of History" on
European prices since the building of the Cathedral of Chartes, which
demonstrates that patterns of price change are quite uneven over time.
Given the present economic uncertainty, it would be presumptuous to suggest
recent trends will continue unabated.
For something closer to the map market, read Gerald Reitlinger's three-volume
"The Economics of Taste" on the rise and fall of prices for paintings and
objets de art, from the mid-18th century to the mid-20th century. I can think
of no better way to conclude than to cite Mr. Reitlinger's introduction to his
third volume (published 1970, pages 11-12).
"It cannot be denied that enormous profits have been made in the past two
decades by those who followed fashionable trends...in order to sell-out a few
year later, but these are not investors but speculators. The only investors are
those who never meant to invest at all. Those who bought some twenty years
ago...may have seen their treasures multiply in value... But they will either
have ceased to collect altogether or they will have joined the general
rat-race, selling dear in order to buy even dearer. Those who bought from
income or pin-money will compete with those who pledge their entire capital.
That is the meaning of art as an investment, nothing less than the extinction
of true collecting."
George Ritzlin
----- Original Message -----
From: Geographicus Antique Maps
To: 'Discussion group for map history'
Sent: Friday, December 23, 2011 1:37 PM
Subject: RE: [MapHist] Alternative Investing 2011 - Mappinga
Profit:Cartography and Fine Art Investment - CNBC
This is a MapHist list message.
News: If you don't get messages anymore, go to http://www.maphist.nl for news
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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
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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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The statements and opinions expressed in this message are those of
the author and do not necessarily reflect those of the University of
Utrecht. The University of Utrecht does not take any responsibility for
the views of the author.
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