1940s Diamond, Ruby and 14K White and Pink Gold Retro Ring

1940s Diamond, Ruby and 14K White and Pink Gold Retro Ring
Photo Credit: gemtrade

1940s Diamond, Ruby and 14K White and Pink Gold Retro Ring

Buy It Now Price: $499 (price as of 2018; item no longer available)

Pros:

-Here is a lovely diamond, ruby and 14 karat white and pink gold Retro ring straight out of the 1940s.  It would be easy to envision this vintage ring sitting on the finger of some fashionable 1940s Hollywood starlet!

-This pink gold Retro ring weighs a hefty 8 grams (25.7 troy ounces) and fits a size 5 finger.  It could easily be resized to fit a smaller or larger finger by any competent jeweler for a nominal fee.

-Retro jewelry came into fashion in the late 1930s and stayed in vogue through the 1950s.  It was characterized by a big, bold look that was emphasized with relatively low-value gemstones, such as amethysts, citrines, aquamarines, synthetic rubies and synthetic sapphires.  Retro jewelry also commonly employed multi-colored gold – especially pink gold – arranged in flashy scrolls, whimsical flutes and stylized florals.

-According to the seller, this pink gold Retro ring is set with a 0.31 carat, H-color and VS clarity white diamond.  And while it isn’t possible to be absolutely sure from the photo, I strongly suspect that this diamond is a transition cut.  Transition-cut diamonds were a hybrid of the old European cut and modern round brilliant cut that was popular between the 1920s and the 1940s.

-With an estimated net gold content of 4.6 grams (0.148 troy ounces) and the spot price of gold around $1,320, this pink gold Retro rink has a melt value of about $195.  The diamond is more valuable however, and would have a conservative liquidation value of perhaps $200 to $300, depending on its exact grading.  This gives a total estimated scrap value for the piece of $395 to $495, which is very close to the buy-it-now price of $499.

-This pink gold Retro ring is selling for a price that is stunningly close to its intrinsic value.  Antique jewelry with a high intrinsic value in relation to its asking price is very desirable, as it limits downside risk.  It is unusual to find an antique ring mounted with such a large diamond for such a low price these days.

-The ring is set with 6 channel-set rubies that are almost certainly Verneuil flame-fusion synthetics.  While they have no intrinsic value, these synthetic rubies are period appropriate and add to the collector’s value of the piece.

-Verneuil synthetic gemstones are quite common in Retro jewelry because World War II disrupted global trade routes.  This conflict cut off the European and American jewelry markets from supplies of many natural mined stones – especially those originating from Southeast Asia, like rubies and sapphires.  As a result, cheap and plentiful flame-fusion synthetics were widely used as substitutes for their scarce natural counterparts throughout the 1940s.

-This pink gold Retro ring really embodies the stylistic zeitgeist of the 1940s.  Its boldly sculpted form, two-tone gold and eye-catching gemstones all epitomize vintage jewelry from the World War II era.  Because of its wonderful style and high intrinsic value, I feel that this ring is a great investment, with little potential downside risk.

 

Cons:

-This rose gold Retro ring exhibits mediocre to poor goldwork around the channel-set rubies.  This is a little bit surprising, considering the goldwork on the rest of the ring looks pretty good.  But I should note that most jewelers consider channel-setting stones to be notoriously difficult.  In this case, I think a good jeweler (not a mall-kiosk jeweler!) could clean up the channel-settings for a relatively modest fee.

-A good rule of thumb is that any white diamond purchased online will be over-graded by one clarity and one color grade.  This is not a reflection of the honesty or integrity of the seller of this pink gold Retro ring, but just a good guideline when shopping for antique diamond jewelry online.  Even if we allow for the possibility that the transition-cut diamond set in this vintage ring is over-graded, I feel the gem would still wholesale for at least $200 on a bad day.

 

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A Failure of Investment Imagination

A Failure of Investment Imagination

I regularly read a website about overpriced West Coast real estate called Dr. Housing Bubble.  The site had an interesting exchange in the comments section of one of its recent posts.  One commenter encouraged people to contact their congressional representative and ask him (or her) to ban the foreign purchase of U.S. real estate.  A regular commenter then responded with this:

First of all I think any law like that would be thrown out by [the] courts. If Trump can’t ban radical Muslims from entering the country, good luck banning rich Chinese from buying homes.

Second, it is ridiculous to tell foreign people who want to bring money and invest it here “sorry we don’t want your money”. Actually ridiculous isn’t the right word…downright insane is a better description.

I wanted to highlight this quote because I feel it is emblematic of one of the greatest investing conceits of our age – a complete failure of investment imagination.  Investors gripped by this dread disease cannot fathom the possibility of a world that is significantly different than the one we currently inhabit.  To them we have reached the end of investment history, where current investing trends, tax laws and economic policies must inevitably persist forever.

But a failure of investment imagination can be hazardous to your wealth.  In fact, we are already beginning to see the slow disintegration of the old financial regime as economic pressure ratchets ever higher.

For example, in August 2016, the Canadian city of Vancouver instituted a 15% transaction tax on foreign real estate buyers.  In April 2017, the entire province of Ontario followed suit with a similar surcharge.  New Zealand has just instituted an even more radical policy than Canada, by completely banning the sale of existing homes to foreigners.

To believe that California real estate is somehow immune from these global developments is unrealistic.  Yet this Dr. Housing Bubble commenter, along with hordes of property buyers, thinks that U.S. real estate policies cannot possibly change.  And while this particular failure of investment imagination is about real estate, it is obvious that a similar mindset is ensconced in all asset classes.

In some ways this is a very natural, very human reaction to the post-Great Financial Crisis investing landscape.  For the last decade, markets of every description – stocks, bonds, real estate – have gone nowhere but up.  This has made investors complacent and entitled.  They cannot imagine a different world, because today’s world is the one they are getting rich in.  And they never want to stop getting rich.

The future, however, is likely to be far less forgiving than the present, particularly in capital markets.  The metaphorical ground underneath our collective economic feet is likely to shift in a profound, and possibly disturbing, way.  Due to a widespread failure of investment imagination, few people are prepared for this brave new world.

What changes will take place in the economy over the next few years?  To be honest, nobody knows.  The world’s central bankers are currently conducting the largest, most ambitious monetary experiment in human history.  As a result, we are in completely uncharted economic territory, and anybody who says otherwise has an agenda.  However, I do think there are a few events that we can reasonably assert will happen in one form or another.

First, I think it is highly likely that what has worked for investors over the past 10 years will stop working rather suddenly.  Risk-oriented paper assets, like stocks, REITs and high-yield bonds, which have marched relentlessly higher over the past decade, will abruptly lose favor.  This will be a tremendous shock to professional money managers and financial advisors, who have built their portfolios around these traditional investment classes.

Second, it is clear that the world will become increasingly localized as globalization at least partially reverses.  Money and goods will not flow across borders as easily as they once did, and, in certain situations, they may not flow across borders at all.  Neither major corporations nor mom and pop investors are prepared in the least for this eventuality.  I detail this concern at greater length in an article titled “Hard Assets in a World of Capital Controls“.

Finally, I believe the future will see a wave of corporate defaults as over-levered companies finally hit the limits of financial market credulity.  This will undoubtedly catch large numbers of sanguine investors off-guard.  Losses will be steep and the damage will be distributed across a wide range of historically “safe” investment strategies.

The flip side of today’s ubiquitous failure of investment imagination is that alternative assets, like bullion, fine art and antiques, have generally been overlooked.  The recent performance of these tangible assets has been rather modest compared to market darlings like crypto-currencies and technology stocks.  But then again, you won’t wake up one random Monday morning to discover that half the value of your bullion stash has been wiped out over the weekend.

This nightmare scenario, where the bid for stocks and bonds dries up suddenly, is called a discontinuous market.  And it could cause the major market indices to gap down by 10%, 20% or even more in a very short period of time – perhaps minutes.  Stop-loss or trailing stop-loss orders which would normally protect your brokerage portfolio would actually be detrimental in this situation, as they would force you to sell into the teeth of the panic.

These dark circumstances in which the previously unthinkable suddenly becomes fact, are, unfortunately, not just possible, but probable.  They are the natural side effects of highly distorting central bank policies that have gutted the middle class while simultaneously creating a new gilded age for the ultra-wealthy.  As frightening as this bleak future sounds, there is a way to protect yourself.  Undervalued hard assets represent a great opportunity to hedge market risks.  Don’t let a failure of investment imagination hobble your portfolio.

 

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Junk Collectibles – The Bane of the Antiques Connoisseur

Junk Collectibles - The Bane of the Antiques Connoisseur

One of the reasons I collect antiques is because I love high quality items.  Fine antiques are often made from some of the most durable, beautiful and desirable raw materials known to man.  This not only grants them an unmatched look and feel, but also a far longer useful life than whatever clutter you can buy at Walmart or Amazon.

But I don’t want to talk about fine antiques today.  Instead, I want to discuss the other end of the spectrum – the junk collectibles made from the nastiest materials conceivable.  Junk collectibles are the kind of banal stuff you’ll find piled knee-deep at almost every flea market, garage sale and swap meet in the country.  And they all have one thing in common.  They are almost always made from one of the unholy trinity of garbage materials: plastic, plywood/chipboard or cardboard.

Of these three undesirable materials, plastic is perhaps the most offensive.  Because it is cheap and versatile, plastic has been gradually repurposed to fill every niche in our lives over the last 50 years.  Whereas during the mid 20th century it was employed with a modicum of aesthetic and engineering care, plastic has since metastasized into a modern-day plague.

This trend has been especially apparent in the junk collectibles segment of the antique market.  A growing influx of collectibles into the marketplace are invariably made of plastic, as items from the 1970s, 1980s and 1990s slowly gain the attention of collectors.  For example, innumerable vintage toys, from Legos to action figures to Lite-Brites, were all made of plastic.  Other vintage collectibles as varied as movie memorabilia, wristwatches and kitchenware were also often made from plastic.

Now, you may ask why I hate plastic so much.  The reason is very simple: it doesn’t last.  Plastic ages very poorly over time, becoming brittle and often discoloring.  Sunlight and temperature extremes accelerate this process.  Plastic items don’t have to be used for very many years before they are covered in chips and cracks, or even deteriorate into a gummy mess.

So if you have an interest in late 20th century junk collectibles, you had better make sure to keep them in strictly climate controlled storage, far from the rays of the hated sun.  And you should definitely handle them as infrequently as possible too.  Most old plastic collectibles are fragile flowers, metaphorically speaking.

In contrast, fine antiques made from comparable organic materials, such as amber, bone, ivory, wood, tortoiseshell or antler, are surprisingly tough.  These kinds of antiques are often 100 to 200 years old, and despite having been dropped, mishandled or neglected for much of their lives, are often still in remarkably good shape.

Sadly, I wish I could restrict my diatribe to only junk collectibles made from plastics.  Alas, cheap composite wood products like plywood, MDF and chipboard have also done their part to contribute to the poor quality of vintage furniture.  Before the 1980s, pretty much all furniture sold was assembled in a factory by skilled craftsmen before being shipped as completed units to furniture stores.

However, it wasn’t long before IKEA burst onto the scene with its ubiquitous “flat-pack” or “ready-to-assemble” furniture.  What began as a good idea quickly devolved into a race-to-the-bottom in term of furniture cost, quality and looks.  Self-assemble furniture from the last few decades is yet another junk collectible, ultimately fit for little else than the landfill.

And then we come to the last of the three horsemen of the junk collectibles apocalypse – cardboard.  Cardboard has traditionally been used as a packing or container material.  In many ways, despite the obvious drawbacks of cardboard – fragility, coarseness and a lack of aesthetic appeal – I find it to be the most forgivable of substandard materials.  After all, cardboard rarely pretends to be something that it isn’t.

Huge swaths of junk collectibles incorporate cardboard in some way.  Any vintage item described as “new in box” by online sellers is invariably encased in a cheap cardboard sarcophagus.  Other collectibles, like vintage baseball cards, board games and select advertising media, use cardboard in a more central role.

Of course, even when dealing with lower quality materials, a distinction should be made between the better implementation of these materials before the 1970s and the horrifically cheap standards in place today.  Plastics are the best example of this trend.  From the late 19th to the early 20th century, plastics were considered the pinnacle of human scientific achievement.

Because of this, early plastics, like celluloid, Bakelite and Galalith, were judiciously used in some very high value items, where appropriate.  Likewise, plywood might be discreetly deployed as an unseen, purely structural member in a piece of otherwise fine Mid Century furniture.  Even cardboard was generally fabricated to a higher standard before the 1970s, although this material definitely has its limits.

But since the 1970s, cost cutting has emboldened product manufacturers to progressively cheapen products in every dimension possible.  Striving to shave a few pennies off the unit cost of goods eventually led to the pervasive use of cheaper, thinner plastics and cardboards.  Plywood, along with other wood composites, became far more widespread in furniture, as well.  As a result, the last few decades of the 20th century have left us an abominable legacy of junk collectibles.

The really sad thing about all this is that many people under the age of 40 have never experienced high quality consumer goods.  While unfortunate, this situation is unlikely to change anytime soon.  Of course, that only makes high quality antiques all the more desirable.  Once you see and touch true quality, you’ll never want to go back to using junk goods ever again.

 

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Limited Edition Landscape Woodblock Print Titled “Snow Day”

Limited Edition Landscape Woodblock Print Titled "Snow Day"
Photo Credit: starkeyart

Limited Edition Landscape Woodblock Print Titled “Snow Day”

Asking Price: $250 (price as of 2018; item no longer available)

Pros:

-This captivating limited edition winter landscape woodblock print was made in March 2015 by the artist Andrea Starkey and is titled “Snow Day”.

-This contemporary landscape woodblock print measures 21 inches (53.3 cm) wide by 10 inches (25.4 cm) tall, with an additional one inch (2.5 cm) wide border around the entire work.  By the time you frame it, this work will be impressively large, perfect for hanging over the living room couch or the fireplace mantle.

-Andrea Starkey is a self-taught artist from Dayton, Ohio who took up printmaking in 2008.  Since then she has become accomplished at Moku Hanga style reduction prints.

-Moku Hanga is the Japanese term for woodblock printmaking.  Most contemporary Moku Hanga style prints created by Western artists concentrate on traditional Japanese themes, such as landscapes, animals or nature scenes.

-A reduction print is made in several discrete steps using a single block of wood (or other printmaking material).  The artist carefully carves the wood with razor-sharp printmaking tools until the first pass is ready.  Then the woodblock is inked and impressed on the paper.  This process is repeated for each different color, shade or tint applied.  The “Snow Day” print pictured above involved at least 15 separate reduction steps.  A good visual representation of the reduction process can be found on this website.

-It is hard for a monochromatic or grayscale print to have that eye-popping “wow” factor.  Color inherently holds the human gaze more easily.  However, this contemporary winter landscape woodblock print by Andrea Starkey is a grayscale masterpiece that up-ends that logic.

-“Snow Day” is an award winning artwork, having won 1st prize at Kettering, Ohio’s 2016 landscape art competition, The View.

-This winter landscape woodblock print was limited to a very small edition of only 28 total copies: 20 examples with a margin and 8 without a margin.  This small original print run increases the chances that this work will appreciate in value in the future.

-Because it is a destructive process by its nature, reduction prints are always limited edition.  Unlike most types of prints, once a reduction print has been finished, it is impossible to go back and make more.  There will never be anymore “Snow Day” prints made.

-I love the flowing composition of this work.  It draws the viewer’s eyes through the forest and along the wooden footbridge.  In addition, the adept use of light and dark, combined with the exquisite level of detail, make this a compelling landscape woodblock print.  And, apparently, other people agree with me.  The artist only has a single copy of this print left for sale (out of 28 originally) in her Etsy shop.  At only $250, it is a steal.

 

Moku Hanga Style Prints By Andrea Starkey for Sale on Etsy

(These are affiliate links for which I may be compensated)

 

Cons:

-Buying contemporary art for investment purposes is always a gamble.  I love this work and think it has a lot of investment potential, but I would only advise you to purchase it if you are aesthetically drawn to it.

-If you intend to hang this stunning winter landscape on your wall, prepare to pay anywhere from $100 to $250 for framing costs.  This would raise the total cost of the piece to $350 to $500, which is still a bargain, in my opinion.

 

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