Some of the 31 Club Members are beginning to scale the higher levels of purchasing power through the compounding of funds and it is time to issue them a stern warning. Yes, the higher end of the Antique and Fine Art markets is where the real money will be made in this market, but haste can make waste. Remember, we are not in any hurry to reach our goals and the rules for the club members are to try to compound your money at least twice a year. So there is no need to rush and make mistakes when you need make only two purchases and sales a year.
Here is some great advice for those individuals who are purchasing items with prices over $1000. Don't guess or assume that just because a certain item brought big money last year it will again this year. Prices have changed dramatically and you need to be aware of this. With the higher end items today you can make mistakes that will take you a long time to work out of if you aren't cautious. Be sure to take the time necessary to know what the item you are purchasing should bring in today's market. Even if it takes leaving the item where you found it and then returning after you have assured yourself of its value.
Many have asked me why the 25% rule [purchase your items at 25% of the retail value] is so important. Let me share with you where it has saved me big time. I purchased several pieces of Roseville pottery for about 4 or 5 thousand dollars. At that time I thought they should easily have brought 15 thousand or more as in years past. To date, I have only sold one of the pieces at what I paid for it and I am hoping to make a little bit of money with the rest. What would have happened if I had paid even 50% of the retail? I will let you answer that. I sent a Rookwood lamp to Cincinnati Art Gallery's auction with a $3500 to $4500 estimate that was placed there by the auction house. It didn't sell but, thankfully, I only had a fraction of the amount invested so I still will not lose money. William and I purchased a painting for $600 that was shipped to Christie's where they gave it a $5000 – $7000 estimate. It didn't sell and has been re-entered at $3000, so there is still profit to be made if it sells this time, thank goodness.
I try faithfully to stick closely to the rule about buying prices and this has kept me in the business when others have failed. I wonder every day where those people are that told me I was foolish and they worked on 10% margins. It doesn't take a genius to figure out that most of them are no longer in the antique and fine art business. This may be a great time to re-read the "31 Steps to Your Millions in Antiques and Collectibles" because the truth is between the cover and back page of those 224 pages and even the best of us need a little refresher now and again.
***** We are finally making progress on the future developments to our site but in the meantime there may be a few glitches. I know that the Gallery, Million Dollar Race and Archives are not functioning but they will be back soon and even better than before. Patience is mine saith the Lord and I have to admit that my patience have been sorely tested over the last few months but I hear the cavalry coming. God Bless. ******
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