Making bank on family heirlooms

Hey there, it's James, and I come with a hard truth this week: People tend to think their valuables are actually valuable, and … they’re usually wrong [View in browser]( [Bloomberg]( Hi, I’m [James Tarmy](. Because I write about the [art market](, people regularly ask me how much they’d make if they auctioned off their painting/sculpture/objet/etc. The conversation never goes well. People tend to think their valuables are actually valuable, and … they’re usually wrong. In all fairness, it’s a universal problem. I am willing to assume that you, dear reader, also think you own something expensive. Maybe it’s a leather-bound first edition, or maybe it’s a watch you got for your graduation, or a necklace you inherited (thanks Grandma!). And sure, you’ve never taken it to be appraised, but in idle moments you imagine selling it for a princely sum. Then you brush those thoughts away: ‘It’s an heirloom’ you think, proud of your internal resolve. Don’t expect spectacular returns on any of these, at least not in the short-term. Illustration: Sisi Kim Buuuuuut if you were to sell it, you’d encounter a few problems. The first, assuming Grandma wasn’t an [Antwerp diamond dealer](, is that she bought that necklace retail, and you would be selling it wholesale. So, knock at least 30% off whatever price you see in the shop window. (Same goes for your [book]( or your [watch]( or really anything else.) The second is that the fever for collectibles is cooling off. I [published a piece]( this week that looked at the market for cars, watches, purses, sports memorabilia and wine, and the forecast isn’t looking great, at least in the short term. Day-to-day expenses have risen, and people seem to be prioritizing necessities over collectibles. Not too surprising, really. Longer-term the outlook is rosier, but there appears to be a growing bifurcation between recognizable brands (Hermès, Rolex, Patek Philippe, Ferrari, Mouton Rothschild) and everything else. If it has a brand name attached to it, the thinking goes, it’s a “safe” purchase, which actually makes sense, at least to me: Untold thousands of Rolexes have already sold, so price discovery is straightforward. You know what to pay because lots of people have already spent the same sum for the same thing. The Patek Philippe 1518 ‘Pink on Pink’ could sell for as much as $4.5 million this June. Source: Sotheby’s The problem, of course, is that no one comes to me asking if their [Patek Philippe Nautilus watch]( is “worth something” because they already know. Which is a long way of saying if you have to ask if an object is valuable … that’s probably your answer. Connect with James on [Twitter]( or via [e-mail](mailto:jtarmy@bloomberg.net?subject=Art+art+art) Elsewhere in arts and culture. [Summer’s Best New Books Tackle War, Theft and Scandal on the Beach]( These will guarantee a thrilling read—but they won’t promise a happy ending. [Major UK Arts Groups Scramble to Get Creative in Face of Funding Crisis]( Cuts in government support, lower audience numbers and controversies over corporate sponsors are adding up to troubled bottom lines. [The May Art Auctions Will Feature Fewer Works, Bigger Price Tags]( After November's record-setting sales, it was natural there'd be a little respite. [Freddie Mercury’s Worldly Possessions Will Be Sold at Auction]( The enormous sale will include his clothes, artwork, furniture and even his famous crown. [Collecting African Art Can Be Ethical. Here’s What Dealers Know]( A lot of important pieces were removed from the continent improperly. But many weren’t, and as enthusiasm for the category grows, dealers worry the shade of illicit history will scare off new fans. It’s New York’s art fair season. If you’re not a “collector” but want a real piece of art, NYC’s fairs are perfect: the galleries you don’t know but might love, all in one place. The only problem? The ticket prices are outrageous. If you can stomach the upfront costs, here are a few of the city’s best. * VIP days omitted for ease of use; some prices vary depending on the day. [Independent]( A fantastic place for contemporary art, with established small and mid-sized galleries selling art in a price range that doesn’t tend to break the bank. May 12–14, Spring Studios; $65 entry TEFAF New York]( Honestly this is my favorite of them all, but that’s because I am (a) a sucker for flower arrangements, of which there are many; and (b) really appreciate the fair’s mixture of old and new, and fine art and decorative arts. Fair warning: stuff here is not cheap. At all. May 12–16, Park Avenue Armory; $55 entry [Frieze New York]( Reduced from its previous iteration on Randall’s Island in size but not in spirit, this fair showcases big galleries bringing easily consumable pieces from well-known artists, along with a smattering of smaller galleries bringing work that’s slightly under the radar. May 18–21, the Shed; $80 entry [NADA New York]( Come here for a pleasant mix of new art from known and unknown artists, from a range of good but maybe not overly polished galleries. To be clear, we’re generally talking about a serious level of art here, still. May 18–21, 548 W. 22nd St; $55 entry Summer is right around the corner. … so it’s time to get serious about serious things, specifically: Food and vacations. You will (hopefully) not be surprised to discover that [Pursuits]( is on it. [Everybody Wants to Go to Maine]( [Will the $850 Menu at Noma Kyoto Change Your Life?]( [California’s Big Snowmelt Will Make for an Epic River Rafting Season]( [These Are This Summer’s 13 Best New Restaurants in the Hamptons]( [The Buzziest California Wine Region Isn’t Napa or Sonoma]( [Indigenous Tourism Gains Traction in the US But Faces Headwinds]( You had some questions... And I have something that bears the vague approximation of an answer! Keep them coming for next week via our [Bloomberg Pursuits Instagram]( and [e-mail](mailto:askpursuits@bloomberg.net?I%20have%20a%20question). If you had to invest in one alternative asset, what would it be? OK, well first, let’s strike the word “invest,” because I feel like I’ve been [prettttty clear]( over the years that these objects [shouldn’t be considered investments](. Freddie Mercury’s Crown and accompanying cloak are coming to auction… would you consider them investments? Photographer: Barney Hindle That being said, and after stressing that this is not in any way investment advice, if I were to choose a single category, it would absolutely be paintings. Why? Because (a) unlike wine or cars or even watches a painting doesn’t require any maintenance or storage fees, unless you’re one of those people [locking cultural treasures in a Freeport](; and (b) they’re pretty much the only collectible where continuous use—in this case, leaving it on the wall and looking at it—doesn’t affect its condition. You can’t say that about a bottle of wine! Just, you know, [don’t hang it in the bathroom]( (humidity: bad) or place it in direct sunlight. What’s the best auction house? There isn’t one. A spectacular Klimt is hitting the auction block at Sotheby’s. Source: Sotheby’s Christie’s and Sotheby’s have been locked in an unwinnable war ever since the auction business switched from wholesale (selling to dealers who then sold to clients at a markup) to retail (clients buying directly with the markup built-in) sometime in the mid-1980s. Since then, they’ve hollowed out a lot of their more “niche” departments like antiquities, rare books, etc. (less money in them) and beefed up their 20th and 21st century departments, which [occupy the lion’s share]( of the houses’ revenue. A group of Mumuye statues which were brought to the art fair TEFAF in Maastricht. Photographer: Frédéric Dehaen So if you DO have something that isn’t contemporary art or very specific, very expensive furniture ([Les Lalanne](, [Diego Giacometti](, etc.) it’s entirely possible that an auction house like [Bonhams]( or [Hindman]( or [Wright]( might be better for you. There’s truly an auction house for everything: [Julien’s Auctions]( specializes in celebrity memorabilia, for instance. And those are just a few houses with a major US presence, there’s many many others both nationally and abroad. The best auction house, in other words, depends on what you’re trying to buy and/or sell. I just read your summer book list. Which should I actually read? Beach books are very specific, and very personal, but I do think there’s a formula for ones that work. First, the setting: You are at the beach, intermittently doing some combination of napping, swimming, eating, building sand castles and/or staring at the waves. There may or may not be a winning formula for the perfect beach book. The right book has to fit into these distractions by being something you can easily pick up and put down and then pick up again. So it has to be breezy and digestible, no matter what the subject. Which is not to say that it needs to be simplistic or dumbed down! So in a sense my answer is a hedge, but the thrust of the point is that I’ve done my best to select a bunch of new books in a range of subjects that will all do the same thing, namely fit seamlessly into the rhythm of relaxation. New for subscribers: Free article gifting. Bloomberg.com subscribers can now gift up to five free articles a month to anyone you want. Just look for the "Gift this article" button on stories. (Not a subscriber? Unlock limited access and [sign up here](.) Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Bloomberg Pursuits newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. 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