Winning the Art Lottery : The Economic Returns to the Ganz Collection
In 1997, the Christie's sale of 20f/l century art works from the estate Victor and Sally Ganz netted more than $207 million, a record sum for a single-owner sale of art at auction. The paper presents estimates of the Ganzes' financial returns from investing in art using records the Ganzes' kept on the prices they originally paid for the works sold in 1997 and two earlier auctions in 1986 and 1988. Over the period 1948 to 1997 the Ganzes earned real rates of return ranging from 12 to over 21 percent for works sold at the three auctions. Overall, the Ganzes beat-often by a wide margin-the returns from diversified portfolios of common stocks. The empirical evidence shows that the Ganzes were not only lucky but skillful investors as well. Their financial success did not resuit from a few lucky purchases. They earned consistently high returns, regularly beating the stock market on works by different artists acquired at different time periods. I also found that buvers were willing to pay a price premium for works from the Ganz collection compared to "identical" works sold by otliers. For example, buyers paid between 25 and 90 percent more for prints from the Ganz collection than for otherwise identical prints. The likely source of this premium is the quality and prestige of the Ganzes' collection itself not the recently acquired celebrity status of the collectons
|Date of creation:||01 Jun 2000|
|Contact details of provider:|| Postal: Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10473945
Web page: http://www.uclouvain.be/ires
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ctl:louvre:2000021. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sebastien SCHILLINGS)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.