British Sterling Silver Edwardian Monteith or Punch Bowl

British Sterling Silver Edwardian Monteith or Punch Bowl
Photo Credit: Antiques-by-Sue-and-Otis-Moore

British Sterling Silver Edwardian Monteith or Punch Bowl

Buy It Now Price: $799.99 (price as of 2017; item no longer available)

Pros:

-Downton Abbey elegance is on display with this sterling silver Edwardian monteith, or punch bowl, produced during Great Britain’s Gilded Age.

-This Edwardian monteith measures 4.5 inches (11.4 cm) tall by 8.125 inches (20.6 cm) wide; it is not a small piece.  The bowl also weighs an impressive 700 grams or 22.51 troy ounces, a clear indicator of its high quality.

-Monteiths – large silver bowls with distinctively scalloped edges – were first made in the 1680s.  They were originally used to cool wine glasses by filling the monteith with ice and slotting the wine glass stems into the bowl’s crenulated rim.

-By the 20th century, monteiths had largely evolved to become ice holders or punch bowls – functions they still excel at today.  If filled with ice, a sterling silver monteith would also do a great job of chilling a few beers or carbonated beverages at your next intimate soiree.

– Like most British sterling silver, this Edwardian monteith is fully hallmarked, a feature that is always appreciated by antique silver collectors and investors alike.  The piece was made in London in 1910 by Harrison Brothers & Howson.  Interestingly, the firm of Harrison Brothers & Howson Ltd is still making sterling silver goods today!

-With silver currently trading at $16.97 per troy ounce, this Edwardian monteith contains $353 worth of the precious metal.  That means the buy-it-now price of $800 represents a modest 127% premium over the item’s intrinsic value.  This is a shockingly low premium considering the superb quality and heavy gauge construction of this 100 plus year old sterling silver masterpiece.

-I love this punch bowl’s chased and repoussé decoration.  It manages to be both streamlined and opulent all at once, making the piece a magnificent example of graceful Edwardian style rendered in solid sterling silver.

-Antique sterling silver flatware and hollowware is one of the most undervalued areas of the antique market right now.  This Edwardian monteith represents an unusual opportunity to invest in a classic piece of sterling silver that is both functional and desirable.  And if the $800 asking price is too much for your wallet, you can always make the seller a lower offer!

 

Cons:

-Some people are put off by antique silver because they believe it to be too stuffy or formal for regular use.  But I think sterling silver works just as well in informal settings or relaxed gatherings as plastic cups and paper plates.  And it looks a whole lot better doing it!

-People living in small apartments or condos might have difficulty finding the room to store this relatively large sterling silver punch bowl.  Alas, this is one of the few downsides of collecting antique sterling silver!

Blockchain 3.0 and the Problem with Bitcoin

Blockchain 3.0 and the Problem with Bitcoin

Almost every article on the internet about Bitcoin uses a photo avatar of the crypto-currency, including this one.  But this physical representation, while understandable, is rather misleading.  This is because Bitcoin is a crypto-currency that promises you the safe, reliable payment of…nothing.  As strange as it sounds, even though Bitcoin currently trades at more than $7,000 per unit, it is a completely virtual, purely conceptual, Veblen good.

Now, I’m sympathetic to many of the arguments put forth by crypto-currency enthusiasts.  The world desperately needs some form of stable currency that is free from the manipulation of self-serving central banks and rapacious politicians.  Crypto-currencies fulfill some of these needs, but not all of them.  Bitcoin, for example, is an excellent medium of exchange, but a poor store of value.

The origin of Bitcoin reads like a cyberpunk Tom Clancy novel.  The conceptual framework for the granddaddy of all crypto-currencies was laid down in a white paper posted online in November 2008 titled “Bitcoin: A Peer-to-Peer Electronic Cash System“.  The author was one Satoshi Nakamoto, a pseudonym for an unknown individual or group of like-minded individuals.  To this day no one knows who Satoshi Nakamoto, the pioneer of the world’s first practical crypto-currency, was.  And it is highly unlikely anyone will ever find out.

On January 3, 2009, the mysterious Satoshi Nakamoto mined the very first Bitcoin into existence.  This was in the form of 50 unspendable Bitcoins – the legendary initial Bitcoin block known as the Genesis Block.  On May 22, 2010, a famous transaction involving the delivery of two Papa John’s pizzas in exchange for 10,000 Bitcoin took place.  While the payment was only worth $41 at the time, right now, in the fall of 2017, these same 10,000 Bitcoin have a market value of more than $72.4 million.

Bitcoin is an almost perfect medium of exchange.  It can be used to securely make transactions around the globe in a matter of minutes without the fear of receiving counterfeit Bitcoins or having your identity stolen.  It achieves this via the impressive technology of the blockchain.  The blockchain is basically an unforgeable, publicly auditable, electronic ledger than is constantly verified by a distributed computing network.  The blockchain prevents the creation of any counterfeit Bitcoins, while simultaneously ensuring that only legitimate, authorized transactions are validated.

As Bitcoin has gained public exposure over the years and the price has risen, experts have come to laud the ingenious crypto-currency.  One major advantage enjoyed by all crypto-currencies, including Bitcoin, is that they are strictly limited in supply.  New Bitcoins are only created via mining, the name given to the process of verifying transactions in the blockchain.  Central banks can create dollars, euros or yen with impunity, but Bitcoin is beyond their reach.

Some proponents of crypto-currency compare Bitcoin to gold.  Both take real effort to mine; Bitcoin in the form of electricity for blockchain verification and gold in the form of diesel, electricity, steel, concrete and skilled labor.  But Bitcoin isn’t perfect.

The premiere crypto-currency has two problems.  First, unlike precious metals, Bitcoin doesn’t have any intrinsic value, rendering it a poor store of value.  Apologists counter that this deficiency is offset by its usefulness as a medium of exchange.  And it is true that Bitcoin is perfectly adapted as a medium of exchange to the online cyber-world of the 21st century.

Others readily acknowledge Bitcoin’s shortcoming as a store of value, while simultaneously arguing that fiat currency is almost identical in this regard.  Although fiat currencies are still available as physical notes, they are also becoming increasingly virtual in the modern era.  Fiat currencies, much like Bitcoin, rely on their widespread acceptance by other members of society for their value.

But there is a problem with that comparison.  Fiat currencies are the official money of nation-states.  They are accepted as payment for both taxes and debts, thus generating fundamental demand for the currency.  This constitutes the underlying, intrinsic value of non-redeemable fiat currencies.  These advantages are not shared by Bitcoin, which cannot be used to pay taxes or debts directly.

Some crypto-currency fans believe that the widespread adoption of blockchain technology for other applications will confer some benefit on its original incarnation in Bitcoin.  While I readily agree that the blockchain may one day become widely used in a variety of different ways, this will not benefit Bitcoin investors in the least.  Bitcoin has no patent on the blockchain concept and will not receive any royalty payments or other remuneration from its use in other industries.

In the end, Bitcoin is completely virtual, without any tangible presence or value.  Even worse, the creation of new Bitcoins consumes real resources in the form of electricity, but provides no practical benefit outside of the Bitcoin ecosystem.  Bitcoin’s blockchain, by itself, is an insufficient reason to use the crypto-currency.  But these facts don’t mean that Bitcoin isn’t an important first step on the road to better, truly desirable crypto-currencies.

In my opinion, Bitcoin represents blockchain 1.0.  It has a self-verifying and manipulation-proof digital ledger, but is ultimately completely self-referential.  Ethereum, a newer crypto-currency, uses a different, more advanced blockchain implementation.  I call it blockchain 2.0 because it has the ability to execute complex, automated transactions or “smart contracts”.  But I suspect the real breakthrough will come with the future creation of blockchain 3.0.  I think that blockchain 3.0 will combine the best attributes of blockchain 1.0 (an incorruptible public digital ledger) and blockchain 2.0 (smart contracts) with a third element – the creation of valuable intellectual property via the verification of the blockchain.

This has already been pioneered with Primecoin, which relies on a prime-number driven blockchain verification system.  Prime numbers are the basis of modern cryptography and the discovery of new prime number chains can theoretically have useful computing and mathematical applications outside of the Primecoin ecosystem.  Unfortunately, Primecoin lacks the features of Ethereum’s blockchain 2.0.  While it is certainly a step in the right direction, I feel that Primecoin doesn’t quite fulfill the ultimate promise of blockchain 3.0.

Another example of computationally intensive computing that could possibly be adapted for blockchain 3.0 would be Folding@home.  Folding@home is a distributed computing network where average people donate their spare computer CPU cycles to simulate protein folding in order to advance medical research related to debilitating diseases such as Alzheimer’s, cancer and HIV.  An improvement in our understanding of diseases resulting from blockchain 3.0 calculations would be extraordinarily beneficial to society.

A crypto-currency incorporating blockchain 3.0 would effectively solve the store of value problem that has plagued the industry since its inception.  Such a crypto-currency would not only excel as a medium of exchange and facilitator of complex transactions, but would also provide tangible value to society outside of its own ecosystem.  Unlike the parade of less advanced crypto-currencies mined today, the electricity used to mine a theoretical blockchain 3.0 crypto-currency would provide useful benefits to humanity instead of simply vanishing into the atmosphere as waste heat.

Buy What You Like – The Art Collector’s First Rule

Buy What You Like - The Art Collector's First Rule

The idea of buying a piece of art for the first time can be very intimidating.  The art world is dominated by technical jargon that can be impenetrable to the layman.  In addition, the field of contemporary art is particularly notorious for its insular attitudes and name-dropping.  But this doesn’t have to be the case.  With just a little bit of knowledge, anyone can be a great art collector.

Now, when I use the term “art” in this context, I imagine that most people think I am talking about paintings, sculpture or maybe photographs.  But I intend the word art here to be understood in a far broader context.  Art, simply put, is anything beautiful that has been crafted or touched in any way by human hands or ingenuity.

The minor arts – coins, jewelry, miniature sculpture, etc. – are all examples of things that most of us don’t consider art and yet are.  They require every bit as much technical skill and raw talent to create as an exquisite painting.  Even a fine mechanical wristwatch or an elegant fountain pen can be art.

In any case, the massive amount of choice available in the art world can be absolutely bewildering.  Where does a novice even start?  I think the answer to this question is self explanatory.  Buy what you like!  There is no point in embarking on the long, but rewarding journey of the art aficionado if you don’t get excited by your chosen specialty.

And there really are an almost infinite variety of styles to choose from.  Do you love graceful shapes and organic naturalism?  Then consider collecting pieces from the early 20th century Art Nouveau movement.  Have you always been attracted by sleek lines, bold colors and abstract forms?  Then contemporary art may be the field for you.  The key is to buy what you like.

This might seem self-explanatory, but there are a surprising number of people who feel compelled to collect hot art market fads.  Respected museums might be filled with 17th century Baroque paintings, but if you find them boring, ostentatious and overwrought, then look elsewhere.  Likewise, every art gallery in New York City might currently be featuring bizarre Massurrealist works, but if they turn your stomach and give you a headache, keep walking.

In addition to a dizzying range of art styles, a large number of disparate mediums have also been used in art throughout history.  A medium is any material an artist uses to create an artwork; almost anything can be a medium.  While traditional paintings are often made from oil or acrylic paints, other artwork, like jewelry or object d’art, are typically crafted from glittering precious metals and gemstones.  Although they couldn’t be more different, both oil paints and gems are considered mediums.  They are vehicles for a gifted artist to display his inherent talents.

Artists have used metals, inks, woods, paints and stone for centuries to create masterpieces of the highest order, often in complementary, mixed media formats.  Artists have not historically  allowed their creativity to be curbed by medium.  As a result, art has been made from every conceivable material known to man.  I believe the aspiring art collector should take advantage of this variety.  Choose a medium that interests you and buy what you like.

However, if you want your art collection to serve an investment function as well as a decorative role, then the dictum to “buy what you like” must follow one other important rule.  The art you buy must have good composition.  Composition is the positioning or use of color, shadow, texture or shapes within a work.  Good composition is innately appealing, although the layman might have difficultly articulating exactly why.  In contrast, bad or mediocre composition leaves a work feeling flat and listless.

For example, diagonal lines are a classic tool used by artists to achieve good composition.  Diagonals are dynamic and give a work a sense of internal energy.  If you examine Old Master paintings, you’ll find that diagonals are often employed to improve composition.

Texture is another element that savvy artists use to create works with excellent composition. Texture is often used to break up large, flat surfaces or add interest to otherwise monotonous features.  Contemporary wall art is a prime example of a category of art that relies heavily on texture to perfect the composition.

Color is one of the oldest, most venerated tools of the artist.  Bold, bright colors can be employed when an artwork is meant to visually “pop”, while pastel colors might be used for more subdued pieces.  Sometimes the complete omission of color, as with black and white monochromatic works, can result in something unexpectedly powerful.

As an art collector, you should definitely buy what you like.  But at the same time you should also weigh your personal tastes against the composition of a work.  A well made work of art employing good composition will have a balance and harmony that is at once subtle, but alluring.  These high quality artworks will tend to appeal to a wide range of people.  If you ever attempt to sell part or all of your collection, having chosen works with excellent composition will result in higher realized prices.

As you gain more knowledge and experience in art, you will naturally become attuned to good composition.  This is also known as developing or cultivating an eye for good art.  Because judging the merit of composition is such a vital skill to the art collector, it is important to take the time and effort to improve your eye.  Read everything you can on the field that interests you and look at examples in museums, galleries or online.  After a while, you will instantly be able to discern exactly what attracts you to one work or disenchants you from another.  If you buy what you like while using a discerning eye, you won’t go wrong.

18 Karat Gold & Diamond Edwardian Cufflinks, Circa 1919

18 Karat Gold & Diamond Edwardian Cufflinks, Circa 1919
Photo Credit: KensingtonAntiques

18 Karat Gold & Diamond Edwardian Cufflinks, Circa 1919

Asking Price: $1,250 (price as of 2017; item no longer available)

Pros:

-Here is a marvelous pair of heavy, 18 karat yellow gold and old European cut diamond Edwardian cufflinks that were crafted in Birmingham, England.

-They measure 0.69 inches (17 mm) long by 0.5 inches (13 mm) wide and weigh a substantial 13 grams (0.418 troy ounces).

-These Edwardian cufflinks are superbly constructed from very heavy, solid 18 karat gold.  Robust construction is one of the primary indicators of quality in antique jewelry.

-These antique cufflinks are fully hallmarked, which is a very desirable trait!  They were made in Birmingham in 1919 by B.H. Joseph & Co., a very well-regarded jewelry and silverware fabricator that operated at 20 Frederick Street, Birmingham from the 1860s until 1929.

-Birmingham, England was world-famous for the number and quality of “smalls”, or small silver and gold accessories, that were produced there.

-These Edwardian cufflinks are set with 12 old European cut diamonds that have an estimated total weight of 0.72 carats.  Assuming an average diamond value of $250 per carat, these cufflinks are set with $180 worth of diamonds, give or take.

-These solid 18 karat gold cufflinks have a simple, but classic design that is both attractive and functional.  This means that even though they are almost 100 years old, a man can still wear these cufflinks to any occasion that requires a suit without feeling out-dated.

-The thing I like most about these Edwardian cufflinks is their relatively high intrinsic value.  With gold currently trading at $1,268, these cufflinks contain $397 worth of gold.  Combine that with the value of the old European cut diamonds and the total intrinsic value of the pair is approximately $577 – nearly half the asking price of $1,250.  Buying antique jewelry that has a high intrinsic value relative to its purchase price significantly reduces your investment risk.

-Regardless of whether you are looking to buy a pair of cufflinks to wear or as an investment, these solid 18 karat gold and diamond Edwardian cufflinks represent good value for your money at an asking price of only $1,250.

 

Cons:

-Although they were created in 1919 at the very end of the Edwardian period, these cufflinks have significant Victorian elements in their design.  Under most circumstances, the mixing of two separate design languages – Edwardian and Victorian in this case – reduces the desirability of a piece.  However, I believe the simplicity of these cufflinks renders them aesthetically timeless.  This also explains why they were created in this style in 1919, well after the Victorian age had passed.  In any case, even though these cufflinks do no embody the typical delicacy of Edwardian jewelry, they are still quite desirable.

-The seller claims that the diamonds in these Edwardian cufflinks grade G to J in color and VS1 to VS2 in clarity.  However, it is a good working assumption that any diamond you buy online from anyone other than a very reputable, dedicated diamond seller will be over-graded by one clarity and one color grade.  Although I have no reason to believe this particular seller is being dishonest or misleading in any way, it is simply a good rule of thumb to follow when buying diamond jewelry online.  Even assuming the color and clarity of these diamonds are one grade lower than stated, the total value of the cufflinks is not significantly impacted because antique cut diamonds are not judged by the same aesthetic standards as modern-cut diamonds.