This is a MapHist list message. News: If you don't get messages anymore, go to http://www.maphist.nl for news about the new MapHist Forum o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o +
Kevin, While I enjoyed immensely the Tocqueville dissertation and agree with some of your other thoughts, "investing" in maps is definitely "speculation." I started to write my thoughts, but the following, gleaned from wikipedia, expresses the concept perfectly: "In a financial context, the terms "speculation" and "investment" are actually quite specific. For instance, although the word "investment" is commonly used to mean any act of placing money in a financial vehicle with the intent of producing returns over a period of time, most ventured money—including funds placed in the world's stock markets—is technically not investment, but speculation. Speculators may rely on an asset appreciating in price due to any of a number of factors that cannot be well enough understood by the speculator to make an investment-quality decision. Some such factors are shifting consumer tastes, fluctuating economic conditions, buyers' changing perceptions of the worth of [an asset], economic factors associated with market timing . . . and the many influences over the short-term movement of [values]. . . . Identifying speculation can be best done by distinguishing it from investment. According to Ben Graham in Intelligent Investor, the prototypical defensive investor is "...one interested chiefly in safety plus freedom from bother." He admits, however, that "...some speculation is necessary and unavoidable, for in many common-stock situations, there are substantial possibilities of both profit and loss, and the risks therein must be assumed by someone." Many long-term investors, even those who buy and hold for decades, may be classified as speculators, excepting only the rare few who are primarily motivated by income or safety of principal and not eventually selling at a profit. Speculating is the assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. The term speculation implies that a business or investment risk can be analyzed and measured, and its distinction from the term Investment is one of degree of risk. It differs from gambling, which is based on random outcomes. There is nothing in the act of speculating or investing that suggests holding times have anything to do with the difference in the degree of risk separating speculation from investing." Barry Ruderman Barry Lawrence Ruderman Antique Maps Inc. 7463 Girard Avenue La Jolla, CA 92037 (USA) b...@raremaps.com www.RareMaps.com (858) 551-8500 Member: Antiquarian Booksellers Association of America International League of Antiquarian Booksellers Gallery Hours: Monday to Friday 9am to 4pm Weekends & Evenings By Appointment ----- Original Message ----- From: a...@moldovan.md To: "Discussion group for map history" <maphist@geo.uu.nl> Sent: Friday, December 23, 2011 2:20:36 PM Subject: RE: [MapHist] Alternative Investing 2011- Mappinga Profit:Cartography and Fine Art Investment - CNBC This is a MapHist list message. News: If you don't get messages anymore, go to http://www.maphist.nl for news about the new MapHist Forum o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + I have been collecting Holy land and Jerusalem maps and views for the past 40 years. I never bought an item "for investment purposes' but I would like to note that the value of these items has fallen considerably, except for some very rare items. Does anyone have any idea why this has been happening? Al From: maphist-boun...@geo.uu.nl [mailto:maphist-boun...@geo.uu.nl] On Behalf Of Geographicus Antique Maps Sent: Friday, December 23, 2011 5:14 PM To: 'Discussion group for map history' Subject: RE: [MapHist] Alternative Investing 2011- Mappinga Profit:Cartography and Fine Art Investment - CNBC This seems absurd to me. You cannot use “centuries” of evidence to dismiss modern day market reality. The market economy of the past 50 years did not exist 100 years ago and what we are dealing with today cannot be understood in these terms, hence, of course “general price increases we think of as continuous really began in the early 20 th century”. That “rise” is an 80+ year pattern of ascendency in map value that beats almost any other investment I can think of. Like any investment there is risk – the Earth could be hit by a meteor tomorrow tumbling the world a new dark age, at that point I am not going to be worried about map value but nor am I going to be trading on the AMEX. On the other hand a tangible object that has steadily and dramatically increased in value over the past 100 years is a pretty good investment. Certainly I would see this 80+ year trend as a stronger indicator than say the history of the American housing market, long touted as a stable and solid investment. Moreover, with a serious history of only about 50 or 60 years, the map trade in general remains in its infancy and has plenty of room to grow. On a related note, it is inaccurate to describe the acquisition of art for investment as “speculation”. By definition a speculator is someone who purchases something expecting profits without any serious basis for that purchase. While certainly there remain speculators in any investment arena, this is foolish and it would not be prudent to invest in anything without research and study. In the art trade, at least, this information is readily available to most people in the form of auction records, many of which are conveniently archived online. Investing in art is thus nothing like “Zen”, it is based upon knowledge, experience, and timing just like any other investment. Collectors get the best returns because, of course, they approach their collections with the greatest knowledge and passion. This is true of any market – that is to say, those who approach the market with knowledge win. The idea that investment is antithetical to collecting is akin to the Tocquevillian idea that Democracy is the death of high art. What we are witnessing is an inevitable change in the collecting– but hardly its death or decline. A collector can nurse his passion for art while at the same time acquire pieces that will likely rise in value as easily as I can acquire profitable stocks in companies that maintain an ethical environmental record. Tocqueville lamented that without a moneyed leisure class there would be no “fastidious consumers” dedicated to the appreciation and consumption of certain kinds of art. What happened instead? The rise in Democracy and coincided with a global cultural flowering of all kinds of art. The rise of the art-investor will no doubt change the market and yes, potentially price out less well financed collectors, but it will also lead to greater interest in the field and provide more opportunities connoisseurship and knowledge to drive collections at all levels. The combination of collecting and investing is a natural response to the rise of a trade, in this case map collecting, in a market economy where the likes of investment capitalists, Arab Sheiks, and the global middle class are all acquiring. Kevin From: maphist-boun...@geo.uu.nl [mailto:maphist-boun...@geo.uu.nl] On Behalf Of George Ritzlin Sent: Friday, December 23, 2011 4:02 PM To: Discussion group for map history Subject: Re: [MapHist] Alternative Investing 2011 - Mappinga Profit:Cartography and Fine Art Investment - CNBC I agree with Dorothy, Ed and Joel. There is good reason for the ILAB’s proscription against suggesting rare books (and maps) are an investment. Aside from the uncertain economics of "investing" in art, such an approach is antithetical to collecting. We, too, hear the investment question in our gallery and our standard reply is "you get your dividends by looking at and studying these maps. If there is residual value at the end, treat it as a bonus." We also suggest a minimum holding period of twenty years to overcome the high transaction costs of the collectible market, and tell people the best financial results have gone to those who are the true collectors. They buy the best maps they can afford and hold them as long as possible. "Investing" in maps or art is a bit like Zen – you hit the target by not aiming at it. It is worthwhile to consider a longer history than ten years. If I recall correctly, when Professor Koeman wrote his little booklet on Blaeu’s Grand Atlas he observed that the price of the atlas went nowhere for two centuries. It is only in more recent times that prices rose. The general price increases we think of as continuous really began in the early 20 th century (some economists argue the late 19 th century), and were preceded by nearly a century of no inflation or disinflation. For those interested in the broad sweep of prices I commend David Hackett Fischer’s "The Great Wave: Price Revolutions and the Rhythm of History" on European prices since the building of the Cathedral of Chartes, which demonstrates that patterns of price change are quite uneven over time. Given the present economic uncertainty, it would be presumptuous to suggest recent trends will continue unabated. For something closer to the map market, read Gerald Reitlinger’s three-volume "The Economics of Taste" on the rise and fall of prices for paintings and objets de art, from the mid-18th century to the mid-20th century. I can think of no better way to conclude than to cite Mr. Reitlinger’s introduction to his third volume (published 1970, pages 11-12). "It cannot be denied that enormous profits have been made in the past two decades by those who followed fashionable trends...in order to sell-out a few year later, but these are not investors but speculators. The only investors are those who never meant to invest at all. Those who bought some twenty years ago...may have seen their treasures multiply in value... But they will either have ceased to collect altogether or they will have joined the general rat-race, selling dear in order to buy even dearer. Those who bought from income or pin-money will compete with those who pledge their entire capital. That is the meaning of art as an investment , nothing less than the extinction of true collecting." George Ritzlin ----- Original Message ----- From: Geographicus Antique Maps To: 'Discussion group for map history' Sent: Friday, December 23, 2011 1:37 PM Subject: RE: [MapHist] Alternative Investing 2011 - Mappinga Profit:Cartography and Fine Art Investment - CNBC This is a MapHist list message. News: If you don't get messages anymore, go to http://www.maphist.nl for news about the new MapHist Forum o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + Joel – We do not advise clients to purchase maps for investment purposes – though we like all dealers invest in old maps and must recognize that they do have investment value, and I am not talking about 3% inflation. As with any physical object, be it a house, a car, or an old map, liquidity is an issue, but it is an issue that anyone purchasing such an object is aware of upfront. Also like any investment, investors in physical objects need a knowledge base regarding what they are buying. Just as one does not randomly purchase stock or houses or cars and expect get rich, one should exercise the same caution in acquiring an antique. Strategic knowledge-based acquisitions however (from dealers and from other venues like auctions) can yield handsome profits over time. If it were not so dealers would all be in the poorhouse. The premise behind fine art investment funds is as sound as and bears a similar risk level as any object asset investment – I see no reason why such funds should not include historical artifacts, like maps, as part of their acquisition portfolios. Kevin From: maphist-boun...@geo.uu.nl [mailto:maphist-boun...@geo.uu.nl] On Behalf Of Joel Kovarsky Sent: Friday, December 23, 2011 1:21 PM To: Discussion group for map history Subject: Re: [MapHist] Alternative Investing 2011 - Mapping a Profit:Cartography and Fine Art Investment - CNBC I think this is different than the point Dorothy Sloan was making, which was seconded by Ed Dahl. The idea that the price of any good rises over time and with inflation is quite different than the recommendation of using old maps as an investment strategy. This business is hardly the equivalent of an index fund, and has none of the liquidity or regulatory constraints that go into financial vehicles (OK, I know recent history questions some of the regulatory issues). I think you tread on very thin ice advising someone to use old maps as a significant investment vehicle. The ILAB (and IAMA) Code of Ethics rightly admonish not to use these materials as "investment schemes." The idea of investing in maps has something in common with investing in art, so that the higher end of the market is likely to yield the best returns over time: you had better have both funding and knowledge to forage that world on a consistent basis. And there are exceptions to everything. Joel Kovarsky On 12/23/2011 12:04 PM, Geographicus Antique Maps wrote: This is a MapHist list message. News: If you don't get messages anymore, go to http://www.maphist.nl for news about the new MapHist Forum o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + o + Ed – I disagree. “Is my map likely to increase in value over time?” is one of the most common questions dealers are asked. In is not unethical to answer truthfully. While we always encourage our clients to purchase maps first because they enjoy them and not directly as an investment, the answer to this question is “most likely”. In the short term, unless you are a dealer or very savvy, it is indeed difficult to purchase a map at a retail gallery and turn a profit, however, in the long term there is significant potential for profit. The historical increase in map value over a considerable time (10+ years) is chartable to anyone with access to historical sales data – which should be pretty much everyone in this list. While certain maps, like the stock market, can bubble in value for short periods of time, the overall and consistent trend is for maps to increase in value as time passes. Most dealers, like ourselves, price maps in accordance with historical retail and auction values for similar items. On such a model a natural increase in value can be reasonably anticipated. Kevin _______________________________________________ MapHist: E-mail discussion group on the history of cartography hosted by the Faculty of Geosciences, University of Utrecht. The statements and opinions expressed in this message are those of the author and do not necessarily reflect those of the University of Utrecht. The University of Utrecht does not take any responsibility for the views of the author. List Information: http://www.maphist.nl Maphist mailing list Maphist@geo.uu.nl http://mailman.geo.uu.nl/mailman/listinfo/maphist _______________________________________________ MapHist: E-mail discussion group on the history of cartography hosted by the Faculty of Geosciences, University of Utrecht. The statements and opinions expressed in this message are those of the author and do not necessarily reflect those of the University of Utrecht. The University of Utrecht does not take any responsibility for the views of the author. List Information: http://www.maphist.nl Maphist mailing list Maphist@geo.uu.nl http://mailman.geo.uu.nl/mailman/listinfo/maphist _______________________________________________ MapHist: E-mail discussion group on the history of cartography hosted by the Faculty of Geosciences, University of Utrecht. The statements and opinions expressed in this message are those of the author and do not necessarily reflect those of the University of Utrecht. The University of Utrecht does not take any responsibility for the views of the author. List Information: http://www.maphist.nl Maphist mailing list Maphist@geo.uu.nl http://mailman.geo.uu.nl/mailman/listinfo/maphist
