Ferrari Mailing List: Re: Amazing - What goes around, comes around...

[Buxton Motorsports, Inc. Gmail (buxtonmotorsports]

Art is an entirely different subject.  Many of the high end art sales are for tax mitigation.  There are some collectors that simply love art, and there is a very limited supply (1) of original pieces.  But art is an easy way to shelter tens or hundreds of millions of dollars from tax liability. It’s small. Easy to store or transport etc.  And during ownership you can lol at it and enjoy it.  The wealthy buy art for (sometimes inflated) values, or buy it then have it appraised for much higher than what they paid, and donate it to a charitable foundation - that they control.  Read about J Paul Getty and how he sheltered pretty much all of his $6B fortune from taxes by buying art.  

I always wondered why some pieces sold for such high values - until I really looked into it. It only takes two people to drive the price of a piece of art up to any level they choose.  

People think the art market, the car market, the stock market etc is random and based solely on random supply and demand or on “market fluctuations.”   It’s all so manipulated it sometimes could be considered illegal.  Stock prices can be manipulated by hedge funds, the media, or an influential person like Elon Musk sending out a tweet.  The death of Enzo Ferrari sent the collector car market into a frenzy and many Enzo era Ferraris went to China and Japan at hugely inflated prices.  Then 5 - 10 years later they came back onto the market for hundreds of thousands (or millions) less. 

Let’s say two high end car dealers want to affect the prices of Ferrari Testarossa, or 89 Porsche Speedsters. I can remember when both could be easily bought with very low mileage in the $50,000-65,000 range.  So these dealers get together and buy up 30 or 50 low mileage, very nice condition examples of a certain model.  Dealer 1 takes one example to an auction that gets a lot of publicity.  Dealer 2 (or a paid associate) pays $300,000 for that example. Then dealer 2 takes one of his cars to the same auction or one occurring soon after and Dealer 1 (or a paid associate) pays $299,000 for that example. All of a sudden Sports Car Market, Autoweek and the collector car market take notice and begin publicly discussing the huge sale #’s. Then the private owners of those models take notice and some begin to put their cars on the market.  Other auctions start to contact owners of these cars to get them to consign those models because there is a huge interest in them, and subsequently large commission profits.  Collectors have FOMO and start buying up similar models.  And suddenly Dealer 1 & 2 both happen to have a nice supply of the popular models for sale.  They break even or make a little on the two they overpaid for and have 29 to 49 others to make huge profits on. 

Then people on the internet can post BAT auctions and complain about how people have too much money, are suckers and half the cars should have been left on the ghetto with the keys in them. 🤣

Brian E. Buxton

Buxton Motorsports, Inc. 

Auto Acquisitions & Consulting

Evansville, IN

Mailing Address:

5411 State Route 261

Unit 903

Newburgh, IN 47629-0923

(812) 760-5513 

www.BuxtonMotorsports.com

www.BuxtonMotorsports.net

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On Jan 15, 2022, at 10:52 AM, Douglas Anderson <dnt [at] dock.net> wrote:



Clyde rhetorically asks:  “On the other hand, look at all the multimillion dollar paintings hanging on walls. Why do people pay that for something they only look at?”

 

Mine is bigger than yours?  Could be – in a social atmosphere rivaling the SR-71 . . . but I’ll never know about the ‘pay for that.’ 

 

I do enjoy looking at fine art.  Constable’s sky and clouds, or the illustrator Norman Rockwell’s slice of life illustrations.  Especially his 1931 charcoal and pencil study of “Milkmaid” for the July 25^th Saturday Evening Post cover.  Or his WW II cover – Rosie the Riveter.  His model for Rosie?  Why not use the Sistine Chapple ceiling?  Yep, Isiah.  Of course he doesn’t have his foot on a beat up copy of “Mein Kampf.”

 

Or some of the Coke trays portraying a red head in the 1930’s.  Josephine Moore.  After my mom passed and Josephine’s husband passed, my dad and her were old time boy friend girl friend.  A marvelous woman.  Modeled for Coca Cola and Camay Soap. Lived until she was 98.  Lived in Placerville, CA, on top of the Gold Bug gold mine.  She’d open her acreage to the Coca Cola club once a year for some sort of annual Coca Cola Club get together.

 

Just looking, for that matter, and running my hand over it, a two time F1 winner – the TAG engine.  I’ve had it for a number of years but still marvel at the engineering . . . for that time period.  And there’s our rusting 91 cid “Offy” midget block out in the garden that was the victim of, well, maybe, too much nitro for the main event. (where can I get an Offy head gasket?  Ah ah ah)

 

And then, in the garage, the little ol’ red, very dated, 1978 Ferrari GTS.  Yeah, I enjoy looking at that.

And for a Ferrari topper: Museo della Ferrari a Ventura, California, Sotto la direzione del curatore Rob Garven.

That’s it.  Oh – and when I am looking at some fine original oil art – I imagine this . . . while standing within 2 feet of the picture, THAT is where Van Gogh stood, or Miro, or Dali, or Pollack or when we’ve had special exhibits at the Ronald Reagan Library . . . Michelangelo’s carving studies or Leonardo da Vinci’s note book pages, written from right to left . . . and backwards.

Yeah – Ferrari for looks, or an SR-71, or an F5A . . . I like the look and the feel.  

Yep.

Doug

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