http://www.vam.ac.uk/__data/assets/image/0005/185225/2007BM5740_michelangelo_david_plaster_cast.jpg http://www.martinfukan.wz.cz/images/noty01.jpg http://img.blesk.cz/img/1/full/421423-img-michael-jackson-andy-warhol-crop.jpg http://www.slezskabrana.cz/gallery/gal37_obr1250750936_141.jpg http://obrazky.4ever.sk/data/download/ine/stara-kniha-218818.jpg INVESTMENT IN CULTURE http://www.cz.artfans.eu/images/citajici-zena.jpg http://www.slavneobrazy.cz/obr/pict/1522.jpg 1. INVESTMENT http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg Investment •Term investment •Definitions: –„the action or process of investing money for profit “(Oxford dictionary) –„the act of putting money, effort, time, etc. into something to make a profit or get an advantage, or the money, effort, time, etc.“ (Cambridge dictionary) http://www.cz.artfans.eu/images/citajici-zena.jpg http://www.slavneobrazy.cz/obr/pict/1522.jpg 2. LIQUIDITY http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg Liquidity •Term liquidity •Definitions: –„Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price“(Investopedia) –„the fact of being available in the form of money, rather than investments or property, or of being able to be changed into money easily“ (Cambridge dictionary) http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg Liquidity •Liquidity of culture goods •In general the culture goods has low liquidity –The time between the decision of capitalization the culture good and real sell can be affected by: •Physical characteristics of culture good (size, weight, material…) •Specific market (specific group of buyers) •Time to care about the culture good and its valuation by professionals http://www.cz.artfans.eu/images/citajici-zena.jpg http://www.slavneobrazy.cz/obr/pict/1522.jpg 3. SALES METHODS http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg Sales methods of culture goods and services •Direct sale •Commission sale •Auction •…. http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg Sales methods of culture goods and services •Primary market –Culture goods are sold by artists »Production for potential buyers »Culture goods and services are created on the basis of current demand •Secondary market –Culture goods are sold by owners »Market with culture goods that have been produced in past and are sold again http://www.cz.artfans.eu/images/citajici-zena.jpg http://www.slavneobrazy.cz/obr/pict/1522.jpg 4. AUCTIONS http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg English auction •Most common form of auction •Price starts low and increases as buyers bid for the item –Until one buyer is left willing to pay a certain amount and a higher bid isn't received during the given time period •The auction is overseen by an auctioneer who announces prices and makes sure all bidders have the opportunity to increase the price http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg Dutch auction •An auction process where the auctioneer or seller starts with a high asking price •Type of auction in which the price of an item is lowered until it gets a bid –First bit win •Relict of auction of tulip in Dutch –In general perishable goods http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg Envelopment auction •Bids are submit in envelopments •Bids aren't known for others buyers –Motivation for giving higher bids •Highest bid win http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg Vickrey auction •Bidders submit written bids without knowing the bid of the other people in the auction •The highest bidder wins •The price paid is the second-highest bid –Motivation for giving higher bids http://www.cz.artfans.eu/images/citajici-zena.jpg http://www.slavneobrazy.cz/obr/pict/1522.jpg 5. FINAL AUCTION PRICE http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg Final auction price •Hammer price –The winning bid for a lot at auction. It is the price upon which the auctioneer’s hammer falls, determining the sale price, but does not include the buyer's premium •Buyers premium –The amount above the hammer price that is paid as part of the total purchase price –Often between 5 % -25 % of hammer price •Sale price –Total price which consist hammer price and buyers premium •Sellers commission –A commission paid by the consignor to the auction house, which is deducted from the hammer price • – • http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg Final auction price • • • • • • • • • • • source: Hasoňová, S.,2010. http://img.ihned.cz/attachment.php/900/31119900/aistuv348BCDE7GHMNjQbdgryz1w29mn/picasso.jpg Final auction price • • • • • • • • • • • http://www.cz.artfans.eu/images/citajici-zena.jpg http://www.slavneobrazy.cz/obr/pict/1522.jpg 6. AUCTION IN THE WORLD Turnover and market share in auctions Goods sold in auction according categories Auction turnover per category (medium) http://www.cz.artfans.eu/images/citajici-zena.jpg http://www.slavneobrazy.cz/obr/pict/1522.jpg 7. Investment in culture Investment in culture goods in USA Price index per creative period http://www.monarosa.eu/files/8813/2575/6151/Lada.jpg CONCLUSION http://www.monarosa.eu/files/8813/2575/6151/Lada.jpg Conclusion •Investment in culture goods is specific kind of investment –In general it is long term investment •Profitability of investment depend on the characteristics of culture good –Durability of culture goods (material, age, condition,…) •Culture goods has low liquidity –Because of •Specific of objects •Specifics of market •Specific of sales method •Auction is popular kind of sales method of culture goods –It exists several types of auctions –In auction is not the hammer price the final price for buyers and sellers – https://im9.cz/iR/importprodukt-orig/721/72152f9156285dfd5168381c586206ba.jpg Use full links • –https://www.artprice.com/ – 1. 1. • –