Well folks, we are sure you are all familiar with this old saying. At this point in time, we think it would be useful to consider whether or not gold is really glittering. Secondarily, we need to address the question: is it gold we are looking at, or iron pyrite. The answer to these questions, we think, lies in the performance of the real asset markets. We consider the price performance of classic art works to be a useful signpost in this regard. Ultra-high quality works of art -- both classics and Impressionist classics -- have been fetching record prices at recent major art auctions. Indeed, in some spectacular cases, prices have come in at DOUBLE the auction house estimate. At the same time, less than classic works are, in many cases, fetching somewhat disappointing prices. The message of the art market, we think, is just this: |
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