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How to invest a R1-m of real money?

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Brazen
Super Contributor
Same as trading blik - research. Can use a good gallery such as the Goodman Gallery in Jhb. But you pay a premium. Auctions are the best place to pick up art now, but you have to know your stuff. Study recent auction catalogues and prices achieved. Stefan Welz at Sotheby's is the one to check out.
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DEP
Super Contributor
I wont buy art as an investment, so far i like what Simon said about STX Rafi, maybe 50% into this fund!
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CHATTYCHAT
Super Contributor
Why not? not only because you favour the Rafi! A large number of people do - they like it, it is a nice/safe haven for ouch money, the returns on a good piece is remarkable over time (5 years), but like anything the item must be liquid when need be.
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Blik
Super Contributor
I am not sure I would buy art as an investment - I dont know enough - but if I like a piece and buy it (for aesthetics only), it would also be nice to find out that it is going to value. Although If I bought a piece I liked, I doubt I would sell.
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richardw
Super Contributor
I read "Valley Boy" by Tom Perkins a few months ago, in which he describes having a really big classic car collection. He got out just before the Japanese economy and world car market tanked hugely. IMHO, cars gold and art rely on the greater fool theory, because none really earn you money unless someone else wants them. Companies do, so I'd rather buy something that where I earn from the dividends and the capital gains are a bonus. I'm sure art etc works for many, but I can't get my head around it.
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DEP
Super Contributor
How about Property Fund and Value fund? would you invest in these?
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richardw
Super Contributor
I don't know enough, really. You're meant to spread it around a lot to reduce risk. I read something about property that I thought was interesting: house prices are often strongly affected by the interest rate, so can move up/down fairly quickly. Commercial property prices are (more) affected by the overall economy, so move up/down more slowly. Property funds are the same, but allow you to reduce the risk of being in only one property, and your investment is more liquid. Maybe someone else has better thoughts on it...
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Not applicable
remember when you by art, usually from a commercial gallery you are paying a 50% premium above the trade price from the artists studio, thats called dealers commission, clearly a lot more that brokerage or an advisers fee. it will take years to recover the premium. buying at auction is only for the experts, with auctioneers chandelier bidding (legal or not) bargains are few. my advice, stick to day trade.
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DEP
Super Contributor
Would you put R1-m into your trading account???
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