PRINCIPLES OF COLLECTING ASIAN CERAMICS:

Investment Concepts of 

Asian Ceramic Art

 
Ceramics such as Porcelain, Stoneware and Earthenware produced in China and other Asian countries are a unique category of art with unique investment characteristics. 
 
Concept 1:
Buy-and-Hold

It should never be misunderstood that art is a long-term investment. Given its low trading volume and high transaction costs, art needs to be held for a considerable length of time before suitable returns can be realized. 

Concept 2:
Buy Low, Sell High

As with most other forms of art, Ceramics does not provide a regular income stream. Investors anticipate a return from price escalations that are outside financial logic. 

Concept 3:
Costs of Ownership

Art is considered a tax free investment but it has costs of ownership related to insurance and storage (depending on the size of the collection). Storage costs for Ceramics are less than decorative wall pictures (like oil paintings) since they do not require elaborate temperature and humidity control. 

Concept 4:
Liquidity

Most art cannot be bought or sold easily or quickly without suffering tremendous compromises in price. Art markets are thinly traded and sales are usually at auctions on set dates. 

Concept 5:
Anonymous

The nature of ancient Ceramics is different from decorative wall pictures such as oil paintings because the artist is anonymous. Collectors of Chinese Ceramics focus on attributes such as style, period and condition of the works. 

 

Concept 6:
Transparency

Reputation of the seller has a strong impact on demand. Buyers are reliant on the opinions of expert buyers to determine whether price is realistic. Market knowledge is a competitive advantage. 

Concept 7:
Enduring Luxury

Various studies have shown conclusively that the demand/supply characteristics of art are similar to that of sophisticated luxury goods.  Art. however, is very different from most luxury goods in one very important regard -- depreciation.  Investment quality art appreciates in value over time.  By comparison, typical luxury goods such as yachts, automobiles, jets and haute couture garments lose value rapidly over time.   

Concept 8:
Reputation 

For people in positions of leadership, owning works of art can be a powerful but understated way of demonstrating a commitment to human achievement. Such displays have been improving peoples success in dealings with others since the dawn of civilization. 

Go to the

Chalre 

Collection

of Asian Ceramic Art