Antiques & Fine Art Market Forecast: It's Opportunity Time for Collectors & Dealers

If you like Porfirio Salinas, take a look at William A. Slaughter.

My phone is continuing to ring off the hook with people desperate to sell their belongings because they need cash, or they think they might. This flurry of phone calls might be based on fear – the fear of not knowing what the value of their savings and property will be if this economy continues its downward spiral. The market is changing, and as buyers and sellers of antiques and fine art, we need to adjust our way of doing business to handle the change. This isn't a "bad" thing. I call this time, "Oportunity Time."

It's opportunity time for those of us in this business and for those collectors who have the cash to buy. I’m not saying we should hurry on out to spend our money. It’s opportunity only if we are diligent in our hunt for treasure and select the very best. When we find it, we should take the chance and offer a price that will best assure a substantial profit. I’m not suggesting we be unfair, but rather take into consideration how long it might take to sell that item at the price we’ll need and to consider if it doesn’t sell at that price, how much further we might have to drop the price days or months down the road to move it. These are very uncertain times, and when we’re buying now, we’re taking a substantial risk. That risk needs figure into our offer. Merchandise is only as valuable as the price someone will pay for it. And, right now, it's anybody's guess what will be a week, a month, or six months from now. By all means, adjust offers to the present market conditions, weighing the risk carefully. Wouldn’t it be interesting to see how much a Mark Rothko painting or an Andy Warhol will sell for today, in light of this Wall Street fiasco. Whoever has cash, can become king of the hill.

This week, a woman who has a wonderful Porfirio Salinas Texas Bluebonnet painting, called looking to sell it. I asked her what she thought the painting was worth. She told me,“$25,000." She might have been correct a little while back, but not today. The last Salinas, same size as hers, sold for $16,000, and that is a new listed figure. After commissions, the most she could expect would be about $12,000. I explained this to her, and I gave her another place to check further. I haven’t heard back from her yet, but I’m certain I will.

The only way that painting will bring more than $12,000 is at auction. In that scenario, the wait will be several months, and by then, there is no telling what market conditions we will be facing. I just happen to have a buyer interested in purchasing a Porfirio Salinas. At the right price, I could sell the painting very quickly, and she could have cash in hand.

You might be asking, “Why not pay a little more for the painting and be sure that you get it?” Here’s why: The next call might be an even better opportunity, so why should I hurry to spend my money? Then, Bingo! The next call was from a person who has some of the best Lotton Glass I’ve ever seen. If the price is right, I will buy it.

When we are dealing in upper end items in the Antiques and Fine Art Markets, it doesn’t take too much of an effort to tie up a considerable amount of money. The rewards in this business can make our lives a lot easier, but we need to be wise in our spending. Always keep track of where you are money-wise. Know what you can commit and what the risks are. And remember – there is always the Associate Program available to 31 Club members if you find a treasure but don’t have the funds to buy it yourself.

There is a large amount of quality items likely coming to market in the days ahead. I already see some of it coming. At this time, we might not need to spend so much time trying to find items that others have missed. This present and coming market will allow us to pick and choose what we want to buy, and at the price we want to pay. It’s looking like a buyer’s market in the making. Our prices should be adjusted accordingly. Don’t make an offer unless you seriously intend to purchase the item. The seller just might surprise you and say “sold,” and you’ll need to buy. Remember the rules in which we conduct our business. If you need a reminder, it’s in our club guide book - “31 Steps to Your Millions in Antiques & Collectibles.”

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Daryle Lambert: When is the Right Time to Sell

Whenever you make a great buy, how much profit should you hold out for? No one can tell you the answer to that question on every purchase, but I can give you some suggestions.

It has been over a year since I started working with a person to sell two Andy Warhol prints: a Howdy Doody and a Witch. About that time it looked like they were pretty much sold, the party wanted to raise the asking price. Since they belonged to that person, they had every right to do it, but was it wise?

Let's examine the facts. When we first offered these, the bid price was $20,000 for the Howdy and $15,000 for the Witch. I suggested that we price them at $27,000 and $22,000. You see, the market was going up, and it wasn't time to sell them at the bid. It wasn't long before I got a call saying that the prices on the prints were going up more, and we should raise the price on them. Tell me something new. So we raised them to $28,500 for the one and $35,000 for the other. The Witch traded places with the Howdy, and surpassed it in price. This price increase in prints was caused by auction prices for some of Warhol's paintings, such as the Cars that sold for $71,000,000. This had very little to do with the prints, however, and I was sure that their prices would start to decline in a short period of time..

Thinking that the market was being artificially raised, my suggestion was to sell them at the next offer. That was when I received a call from California from a gentleman that offered almost $40,000 for the Witch, which I gleefully presented to the seller. Much to my surprise the selling party now wanted to raise the price to near $60,000 for the one and $45,000 for the other. I no longer represent the selling party on the prints, but today I found out that the prices were dropping and now approaching the initial price we started at.

There are at least two reasons why the choice not to sell made no sense. First they where prints, and prints are faddish. Their value, more than likely, wouldn'tt pass the test of time. Second, what could the seller have done with the money if the prints had been sold? That money might have doubled or tripled by now had it been invested in other items. The old saying in the stock market is "Bulls make money and Bears make money, but Pigs go broke." You always sell into a rising market, and the best time to buy is when everyone else says don't buy now because everything is going to zero.

The game we are playing is buy and sell, and we do this over and over again. We are not looking for appreciation, because in our plan anything we purchase should be worth several times what was paid at the time of purchase. This means our money is active, and the risk is almost nil.

Don't get caught up in the excitement of the market place and forget the purpose of our plan.

Don’t just follow the daily Blog. Join with like-minded 31 Club Members. Turbo charge your treasure hunting. Learn Inside the Industry Secrets. Learn to build a bank account to last a lifetime, buying and selling antiques, fine art, and collectibles. My 220 page book, 31 Steps to Your Millions in Antiques & Collectibles is FREE with your membership. The book is also available on Amazon.com. If you buy the book on Amazon, then the membership is FREE.

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Paintings by Artists You Can't Find Information About

Harvey Joiner's "Kentucky Beechwoods-Autumn." Photo from Higgins-Maxwell Gallery

It is easy to find out the value for paintings by Andy Warhol, Robert Wood, or Thomas Paine by going to the Internet or Davenports Price Guide, but how about Stefin Krammar, Harvey Joiner, or Robert Knudson? If you haven't heard of these last three, that comes as no surprise to me. But I have a painting by each one of these artists. Why do I have these? Each one has great quality in their workmanship and has a fairly high retail value if you can find a buyer. Besides that, I paid very little for them.

By doing the smallest amount of research, you will find the values on 150,000 artist in the Davenports Guide and many more on an Internet Search. This still leaves thousands of artist undiscovered that command high prices for their pieces.

In fact, I have found that the most money to be made, based on percentage invested, is in finding a painting that will bring a great deal of money in a particular part of the country, but the artist doesn't make the regular channels that you would generally consult.

Let's take my Stefin Krammar for instance. Mine is a watercolor of a cowboy riding through the countryside. At the time I found it, western scenes appealed to me. I purchase it for $250. It was very well done, so I figured that it was worth more than $250, even if Krammar wasn't a well known artist. I searched and searched for information about Krammar, and I finally discovered that he was a Texas artist and a museum in Texas was compiling an exhibit of his work. Nothing could be found on the Internet or in my guides, so I called the museum inquiring about its possible worth. My jaw dropped to the floor when the answer came back "$5000." Yes, it was worth a lot in Texas but it seemed nowhere else. I had very little competition in buying this painting because most people would have given up on finding a value on this artist after that initial search. Knowledge and that extra mile will pay off in spades if you are patient.

Harvey Joiner and Robert Knudson are similar situations. There is little known about them outside of a small area of the country where their work is collected. Harvey Joiner's paintings will bring three to five time more in Kentucky than anywhere else in the country. If you check his record price for a painting, I think it will be about $4000. But, I can assure you that the right piece of his work in Kentucky might fetch $15,000- $20,000 dollars or more. Remember the Joiner portrait I bought on the East Coast for $240 sold for $3,700 in Indiana.

I think that you can see what I'm getting at. If a painting has a high enough quality, you might not have to worry if you don't find it in the guides. You can still turn some serious money. By having the knowledge to evaluate the quality of a painting, it can substantially reduce your competition, especially if you don't recognize the artist.

How do you get this knowledge? By looking at as many paintings as you can and trying to distinguish what makes each one valuable. There is no substitute for viewing paintings, but also you have the staff at the 31 Club to help you. When you join us, your one-time membership fee will open the door to a world of help and information. You'll learn why certain paintings are valuable and how to spot them. As a member, you also have access to our Associate Program. This program can help you purchase a painting you might have stumbled upon, if you haven't yet built up the cash to make the purchase yourself. We'll help you buy it and take care of the sale. What could be better than that?

The 31 Club uses a wealth building plan that can help you accumulate enough funds to last a lifetime, buying and selling antiques, collectibles, and fine art. Join the 31 Club. Learn about Antiques & Collectibles. Learn How to Invest in Antiques & Collectibles and build lifetime wealth. The plan is in my book. When you join today, you'll receive my 220 page book, 31 Steps to Your Millions in Antiques & Collectibles, FREE.

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