Skip to main content

Art flippers in force

Thanks to Finance Trends reader, David, who sent along this article from Bloomberg, "Art `Flippers' May Push Spring Auctions to $1.4 Billion Record".

Here's an excerpt:

A growing breed of art buyer -- the ``flipper'' -- will be out in force along with new and established collectors and dealers today through May 17, when aggressively priced Rothkos, Warhols and Picassos go under the hammer at Christie's and Sotheby's in New York.

The auction houses predict that they will move almost $1.4 billion of Impressionist, modern and contemporary artworks during the high-stakes spring sales, 60 percent more than last May's record $854.9 million.

Not surprisingly, gallerists, collectors, auction-house executives and art advisers say they are hopeful, even confident, that the boom will continue. But almost everyone agrees that the rapid rise in prices -- especially for contemporary art -- has to do less with a love of art than with an influx of art investors.

``People who are buying these things are not collectors,'' said Miami-based art adviser Lisa Austin. ``They are traders, and they are buying and flipping as quickly as they can. It's like day trading.''

Dealers say the trading mentality is increasingly apparent. ``People think they will make money quickly and that it's a sure bet,'' said Andrea Crane, a New York private dealer. ``I know it happens. I've seen it.''

Well, it's not the first mention of art flippers we've seen in a Bloomberg article, but this piece does put the quick-buck artists front and center. Kind of reminds you of the media coverage about residential property flippers in 2004 and 2005, doesn't it?

And in the interesting coincidence department, didn't we just see an episode of Golden Girls with this sort of art-flipping storyline last night? Yes, I know - you're scared.

For more on the red-hot art market see, "That Booming Art Market", or search the blog for more.

Popular posts from this blog

Lessons from Hedge Fund Market Wizards: Scott Ramsey

Today we continue our series, "Lessons from Hedge Fund Market Wizards" , with a look at Jack Schwager's interview with Scott Ramsey of Denali Asset Management.  Ramsey, a futures trader and CTA who works on the island of St. Croix, spoke to Schwager about his first foray into the markets, his evolution as a trader, and the process he stands by to protect and grow his clients' money. 1) . Ramsey started trading in college. He was roped into the OTC metals market via a broker's ad in the Wall St. Journal. The broker charged customers a flat fee to buy and sell as much as they wanted in a particular market for six month. At the time, Scott was a novice and didn't know about futures, so he traded metals in this fashion through the inflationary run-up of the late 1970s. 2) . Scott had to rethink his trading strategy after he bought silver at $50 an oz., only to watch it collapse to $26 following a long string of limit-down days. He sold as soon as the market...

Finance Trends 2019 Mid-Year Markets Review

Email subscribers of the Finance Trends Newsletter receive the first look at new articles and market updates, such as the following piece, sent out to our email list on Sunday (6/14).   Hello and welcome, everyone! If you received our last email notice over the July 4th holiday, you'll know that this weekend's newsletter will serve as a mid-year market update and a follow-up to issue #29, " How to Reinvest in a Rising Market ".   Ladies and gentlemen, without further ado, let's start the show...  Finance Trends Newsletter: Our Mid-Year Market Review When we last spoke, back in February, the U.S. stock market was rallying off its December-January lows. As the S&P 500 and Nasdaq reclaimed their 200 day moving averages in February and March, it became increasingly apparent that a lot of retail investors (and perhaps some institutional investors) were left under-invested while watching this recovery move from the sidelines.  The U.S. stock ...

How to "Pull the Trigger" on Your Trading Ideas

In our last post, I quoted hedge fund manager, Jim Leitner on the importance of following up on your investment ideas.  Today I'd like to follow up and share some thoughts on how you can learn to consistently "pull the trigger" on your best trading setups and investing ideas. In order to help you do that, we'll take from the best and offer up key insights from interviews with top traders and trading psychologists like Alan Farley, Brett Steenbarger, and Doug Hirschhorn .  Now before we get to their key insights on overcoming trading anxiety and pulling the trigger on your trading ideas, let's remember what Jim Leitner said in his interview: "Learn to love to listen to people and when you hear something interesting, follow up on it. Don't just think, "Well that's an interesting idea" only to find out a year later that the company you could've bought shares in is now up 500-fold. You never want to say woulda, coulda, shoulda...