Teresa,
Is my math correct to say 100% appreciation in value over the course
of 30 years amounts to an actual increase of slightly over 3% per
year? This seems a very moderate rate.
As a specific example: I sold an 18kt hand crocheted necklace in July
of 1999 for $5500, one of my current necklaces which is almost
identical, will sell for $6750 one year later. I don’t see that this
has been affected by the price of precious metal, the costs of which
has not changed significantly. (in regards to pricing my body of
work, the gold cost for both of the necklaces were each figured at the
same rate and the difference in weight is minimal, less than $70
actual cost)
I estimate this increase conservatively at an appreciation of 22% in
value in a single year. I admit it may not increase to this same
extent in each and every year, but then again, it doesn’t have to. I
also doubt that any of the value of this necklace will dissipate even
if gold falls to half its current market price.
Just like your squash blossom necklaces, silver and coral may be what
they are comprised of, but the price of those commodities today,
isn’t what has determined the current value of these pieces in your
collection.
My point is academic, of course. The value of a finished piece of
fine art comprised of pigment on surface is not in any way effected by
the subsequent fluctuations in the price and cost of paints and
canvas and framing materials, or is it.?
Best regards, Michael
Michael, It is not to judge one type of fabrication over the other,
it is to recognize the intrinsic value over the years. My Squash will
never be valued by the weight of the Silver, yet I have 98% of my Gold
jewelry in a Pawn Shop at a fraction of the purchase value, only the
weight of the gold at the market price at the time I had to place it
there.
I dare say your 18K Crochet necklace would not feed the owner were
they in the unfortunate position I find myself in. Many of my pieces
are European and exquisite, I don’t want to lose them, so did what I
had to do. Teresa
concerning appreciation in value… I sometimes find myself in a
quandry of the designs I want to do, and what will sell in my small
steel town. Not everyone has that artistic sense, or do they wnat
it. BUT, I must satiate all levels of my business…first and
foremost, I must live, so I must produce something that will sell.
something not too artistic , rather simple, using styles and designs
that are not my preference, or what I enjoy doing. (most of my time
is consumed with repairs, size this, solder that, and make me this)
It pays the bills…i found I enjoy doing restoration work on
antiques. Time consuming and brain numbing but constantly
interesting and it makes good money…so the rest of my time I
design my own stock. Not all of it is jewelry that I like, but as
long as I appeal to my mass market…lt is work, that is why it’s not
always fun. I satiate all of this though with doing those special
pieces that I TRUELY want to do. I don’t do as many as I would like,
but I also don’t have alot of unwanted stock laying around. Where
from here though…Ok, I realize I like doing a particular style of
jewelry, and that IS why I am an artist…i must find my market. Not
many people in my small steel town want to by a 27 carat tourmaline,
or see my agate sceneries. i am currently looking into competitions,
galleries and juried shows to move MY work where I want it and where
it will be appreciated. I don’t want to do repair work all my
life…I am 29 and I want future, and to get it, I have to go out and
GRAB IT! It’s not always an easy proffession, and most of the people
on orchid have a great attitude about what they do…There is room
for all of us, and we’re in the same boat. -julia
Julia - Do the pieces that you really love to make. They will show
the passion that you have for the medium. Show them up front and when
people ask about them educate them as to the merits of a artist
designed piece of jewelry. You will find customers that love them as
much as you do and they will tell their friends. Make the pieces and
do the repairs that pay the rent as well. Eventually, your customer
base will change and allow you to do more of the work you love and
less of the stuff you hate. It’s not going to happen over night. You
have to be persistent.
Steven Brixner - Jewelry Designer - San Diego CA USA
mailto:@Steven_Brixner4
http://www.brixnerdesign.com
All though pawning one’s gold is not a terrifically fun thing to do,
sometimes it has to be done. Meanwhile, try buying the finest hand
embroidered sheets, at the most elegant and exclusive shop somewhere,
use them for five years, then see if you can sell or pawn them for
enough to buy one dinner. Investing in gems and precious metals is
not like being a stock broker. I think if we all suddenly had to go
refugee status, and I was running down the street with a handful of
baht chains and the guy next to me was running with a briefcase full
of paper certificates, I would most likely get the loaf of bread before he would.
Basic, primal value.
No, Michael. If the price doubles over an interval of 30 years, the
average inflation rate is a little over 2 % (Actually 2.337%).
The general rule for determining the average rate of inflation over n
years is to express the price change as the price at the end of the
period divided by the price at the beginning and raise that to the
power of 1 over the number of years, and subtract 1 from the result.
Thus, 2^(1/30) is 1.023374.
(This method makes sense if you think of the effects of an increase
of, say, 3% per year. After 1 year the price is 1.03 times what it
was at the beginning, after another year it is 1.03 x 1.03 the
beginning price, and so forth, so that after n years it is (1.03)^30.)
The consumer price index back to 1913 can be found by following links
at http://stats.bls.gov/ciphome.htm
A useful table containing the history of the US consumer price index
back to 1913 can be accessed from this site. Sobering.
Dian Deevey