Mei Moses has repeat sale information on 17 of the works offered and they showed a compound annual return of 12.8% with an average hold period of 10.5 years. The average return over the same period for the S&P index was only 3.6%.
The press release and the full report does show a difference between the upper market evening sales when compared to the day sales which contain works with lower estimates and value points. The day sales showed a 60% lower return when compared to the Mei/Moses repeat sales index in this market sector. This again shows and reinforces what most appraisers already know, that higher quality items in the upper market are outperforming middle and upper middle art sectors.
The Mei Moses press release on the PWC sales states
The two June evening sales have been reported in the press as being quite successful with near record total sales and with an impressive 85% of the lots sold. From a financial returns perspective of the holders of the art that sold the results were also very impressive. We have repeat sale data on 17 of the lots that sold and the average of their compound annual returns (CAR) was a very strong 12.8% with an average holding period of 10.5 years. This relative strength is documented when these returns are compared to the returns that would have been achieved if the art purchasers had invested instead in the S&P 500 Total Return index (where dividends are reinvested tax free) for the identical holding periods as the art. The average CAR for the S&P investments would have been only 3.6%.
The day sales told a dramatically different story. Each auction house had one day sale which when combined produced poor results substantially below those of the evening sales. The mean CAR for the day sales was over 60% lower than the overall mean return on our entire repeat sale database for this collecting category. There were 51 lots with repeat sale results across the two daytime auctions of the two auction houses. The average CAR for the 51 pairs was 4% with an average holding period of 9 years. The average CAR for our world wide PWC data base of 3,090 pairs is 11% with a holding period of 10.9 years. The average CAR for investment in the S&P 500 TR index for the same holding periods as the 51 art pairs was 5.3%. This result shows the relative strength of the equity market over the art market for this collecting category for the most recent day sales.
The combined 68 day and night sale lots had an average CAR of 6.2% the combined S&P 500 CAR for the exact same holding periods was 4.8%
For more information and details on the PWC sales from a financial perspective, click HERE to visit the Beautiful Asset Advisors site. The recent auction analysis information is available under the Press Release link.
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