 | Investment U E-Letter: Issue # 485
Thursday, November 9, 2005 Investing in Fine Art and Collectibles: My Secret to Saving 30% or More
by Mark Skousen, Chairman, Investment U
Last week, I was in Orlando visiting an old friend of mine, Mike Kushmann. Mike is a low-key guy originally from San Francisco, who runs a business in Florida called Fine Arts Ltd. You've probably never heard of Mike, but he offers the most unique service I've ever seen in the investment world.
In fact, Mike will probably not be especially happy to see his name mentioned in Investment U. You see, what he does is so unique and so valuable to investors that he fears too much publicity. If his services become generally known, he thinks his technique won't work anymore.
He is so secretive about it that he doesn't even have a website to advertise his services. He doesn't even have an e-mail address. (I did convince him to offer a toll-free number, however. See below.)
So, for those of you interested in investing in fine art and collectibles, what exactly does Mike do?
He's the only genuine "wholesaler" in the United States who acts as a discount art dealer, and he can save you thousands when you buy paintings, prints, sculptures, rare books, etc. I'm very serious about this. To my knowledge, no one does what Mike does. He can save you 30% to 40% on these types of items.
If you are like me, and are tired of staring at stock certificates or brokerage statements, why not sell some stocks and buy a nice piece of art or a collectible? You might even make some money.
How I saved 28% On a First Edition of Adam Smith's Wealth of Nations…and Made 300% on My Investment!
I've been buying art from Fine Arts Ltd. for years. For example, in 1989, I wanted to buy a first edition of Adam Smith's classic book, The Wealth of Nations. This book is extremely rare and seldom comes on the market. It was published in 1776, a declaration of "economic" independence! And this copy had a fascinating provenance: It was previously owned by the University of Glasgow Library (where Adam Smith taught), the Rothschilds Library, and Paul Mellon, son of Andrew Mellon and former president of the National Gallery of Art.
The owner (from Japan) wanted $35,000 for it, and the price was not subject to negotiation.
So, I called Mike Kushmann, who acted as my agent, called up the owner, and got the book at "wholesale." My price: $25,000! I saved $10,000, or 28%. A few weeks later, I was the proud owner of the most coveted rare book in economic history. Today, my first edition of The Wealth of Nations is worth more than $100,000.
On another occasion, I was in Las Vegas and saw a print of a beautiful "Florida style" Thomas McKnight painting at an expensive art gallery in "The Forum." The gallery owner wanted $3,000 for the signed print, without the frame. The price was "fixed," he said. I walked out of the store, called Fine Arts Ltd., and Mike got me the same signed print from another source for $2,000, including the frame! Today, the McKnight painting hangs in the master bedroom of our home in Florida.
From time to time (though not too often), I've mentioned Mike's services to my Forecasts & Strategies subscribers, and many of them have thanked me for the incredible savings Mike has earned for them. Here Are Three Stories from Subscribers in the Past Year… - One of my subscribers saw a serigraph by Patricia Nix in a gallery. He called Fine Arts Ltd. and paid $2,275, instead of the $3,750 the gallery was asking - a savings of $1,475, or 39%.
- Thomas McKnight's "Cold Spring Harbor" was priced at $3,500 in a gallery. Mike got it for $2,650, a savings of $850, or 24%.
- A doctor and his wife saw a Frederic Hart "Memoirs" sculpture in a gallery for $35,000. They called Fine Arts Ltd. for help and Mike was able to buy this beautiful lucite sculpture for $22,225 - a $12,775 savings, or 36%.
Interested? Contact Mike Kushmann at Fine Arts Ltd. by calling 800.229.4322, or 407.702.6638. His address is 174 W. Comstock Ave., Suite 101, Winter Park, FL 32789. Ask for his free brochure.
Even if you are not interested in buying a work of fine art or collectible right now, I suggest you save Mike's particulars for a future opportunity. (Subscribers often ask me, "What was the name of your discount art dealer? I need to talk to him about an art work I want to buy, and I can't remember his phone number.")
A Year-end Tax and Investing Reminder: Donate Your Fine Art and Get a $20,000 Deduction
As we approach the end of the year, you might be interested in a unique "low-profile" tax-saving idea from Mike Kushmann. After enjoying your discounted artwork for a year or more, donate it to your favorite college, foundation or charity for a tax deduction based on the appraised fair market value, which can, in many cases, be higher than your cost basis (especially in today's bull market for collectibles).
Mike can do all the work for you. He buys the art work (at a discount), ships it to you, then helps you donate the art the following year, showing you how to fill out the IRS forms. I suggest you give Mike a call at his Fine Arts office and ask him about the particulars. Deduction is limited to $20,000 each year. Good collecting, Mark Today's IU Crib Sheet - The U.S. Commerce Department reported today that the U.S. trade deficit with China hit $20 billion in September, and it's on pace to be the largest annual trade deficit with a single country - $200 billion! And China's increasing leverage doesn't stop there… check out Investment U issue #471: Foreign Buying of National Debt: The Day Countries Stopped Purchasing Our Debt…and a Seismic Shift in Investor Psychology
- I recently participated in a radio interview with Gerri Detweiler at WSRadio.com. Gerri is the host of the station's EverydayWealth show and is a Credit Expert Board Member for money-saving advice online. Listen to the interview here.
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