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.”

Treasure Hunters:

You Find It.
We Buy & Sell It.
You Net 35%.

Partner Up with 31 Club on High Quality Treasures You Find. We Do the Rest!!

Sellers:

Sell Your High Quality Items for LOW FEES
at 31 Gallery & Marketplace.
Keep More of Your Money.

Buyers:

Buy High Quality Items for FAIR PRICES
at 31 Gallery & Marketplace.

Our Members are Newbies to Seasoned Professionals
Making More Money than they Thought Possible.

Daryle's 220 Page Book,
31 Steps to Your Millions in Antiques & Collectibles is FREE with your Membership.
Plus You Get FREE MENTORING with Daryle.
Join Today!

Or E-Mail us at info@31corp.com

Is a Shakeout Imminent in the Antique & Fine Art Industry

In several of my previous blogs, and in my book 31 Steps to Your Millions in Antiques & Collectibles, I’ve commented that the marketplace will always adopt to the conditions its presented. Right now, in the Antiques and Fine Art Markets, we’re presented with various venues along with their associated fees that, today, have risen to unheard of levels. For example, today you find Auction houses collecting close to 50% of an item’s value in commissions and fees. They collect this amount by “double dipping” – collecting, what I consider, out-of-line- fees from the seller, and then charging the buyer a fee for the privilege of buying. I don’t know about this, but I have to ask myself this: When did auction houses become part owner of your inventory or your personal belongings? Last time I checked, my real estate agent was collecting 6% or less from the seller, and the buyer certainly didn’t have to pay a buyer’s fee for the privilege of buying.

This is just one example of what’s happened within industry, but the point is this: There is only so much people will take before they “revolt.” Lately, I am beginning to see the marketplace adapt to the conditions its been presented with lately, and people are beginning to rumble.

Business who have thrived on eBay in the past, are heading for the exit doors today, finding alternative sales formats due to eBay’s escalating fees. It can’t be too far down the road that people will revolt against the fees charged at auction houses, as well. I believe a shakeup is imminent, and ideas that have been germinating are now just sprouting.

31 Club and its programs for our industry is part of this shakeout and is sprouting a new venues, where both seller and buyer will benefit by lower fees and no buyers premium. A company who makes money on the back end after having provided a service, rather than on the front end.

There is no question in my mind that the Antique and Fine Art markets are going to have a shakeout, however the bigger question is this: What form will replace the existing way of doing business? I believe it will be a model similar to what we are creating at 31 Club, and a place where you can do the majority of your business on one site. 31 Club is a company you can partner up with and one that has been formed to assure your success before thinking about themselves. For these reasons and many more, I believe that the formation of the 31 Club is a glimpse into the future of this industry.

I believe companies like Blackwells Live Auction and Antique Associates at West Townsend, Inc. are companies whose pages you might want to explore, among others. If you become aware of companies who are shaking off the unreasonable ways, or you might be one of these companies yourselves, please send us an email and let us know. We’ll be writing about this approaching shakeout over this coming year and want to include those who are in step with the changing times.

Jeremy has assured me he hasn't even begun to create the most exciting site on the web for us, and we have begun discussions conducting having our own auctions. Wouldn't that be great to have fees for services that don’t require you to declare them as half owner of your belongings.
Your ideas about how we might improve services to members are welcome and encouraged. Please e-mail us at info@31corp.com or give us a call at 847-784-8544