OF COLLECTING ASIAN CERAMICS:
Ceramics such as Porcelain, Stoneware and Earthenware produced in China and other Asian countries
are a unique category of art with unique investment characteristics.
It should never be
misunderstood that art is a long-term investment. Given its low trading volume and high transaction costs, art needs to be held for a considerable length of time before suitable returns can be realized.
Buy Low, Sell High
As with most other forms of art, Ceramics does not provide a regular income stream. Investors anticipate a return from price escalations that are outside financial logic.
Costs of Ownership
Art is considered a tax free investment but it has costs of ownership related to insurance and storage (depending on the size of the collection). Storage costs for Ceramics are less than decorative wall pictures (like oil paintings) since they do not require elaborate temperature and humidity control.
Most art cannot be bought or sold easily or quickly without suffering tremendous compromises in price. Art markets are thinly traded and sales are usually at auctions on set dates.
The nature of
ancient Ceramics is different from decorative wall pictures such as oil paintings because the artist is anonymous. Collectors
of Chinese Ceramics focus on attributes such as style, period and condition of the works.
Reputation of the seller has a strong impact on demand. Buyers are reliant on the opinions of expert buyers to determine whether price is realistic. Market knowledge is a competitive advantage.
Various studies have shown conclusively that the demand/supply characteristics of art are similar to that of sophisticated luxury
goods. Art. however, is very different from most luxury goods
in one very important regard -- depreciation. Investment
quality art appreciates in value over time. By
comparison, typical luxury
goods such as yachts, automobiles, jets and haute couture
garments lose value rapidly over time.
For people in positions of leadership, owning works of art can be a powerful but understated way of demonstrating a commitment to human achievement. Such displays have been improving peoples success in dealings with others since the dawn of
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Asian Ceramic Art