Part II: Investing in collectibles “Solution 1: Buy real FAKES, they’re cheap!” - Larry Haverkamp, 06 Aug 2013
We now return to the question: “Why not just buy fakes, like synthetic diamonds, that are declared fakes?” If your name is Ah Bling and you drip with diamonds, you can save a fortune.
The problem with fakes, however, goes beyond diamonds. Take fake art. There is more of it and it’s just as hard to recognize.
Can anyone be sure an antique Chinese vase is a real antique? Does a casual admirer ever know if it’s worth a million dollars or a hundred?
Again, an easy solution is: Buy fakes that are sold as such. You’ll save a fortune and it’s your choice to confess to its lack of authenticity (Plan A) or to go for the big bluff (Plan B).
FUN WITH FAKES
You can also have fun with the fakes. Hang the works of famous artists at home or in the office. They’re as beautiful as the real thing and look real, but couldn’t possibly be. It would be too expensive.
If anyone asks you: “Is that a real Picasso?” you can shrug it off with a joke like, “Well, the guy who sold it to me for $10 said it was!”
For branded goods, the “keep mum” approach works well. Take handbags. There is a 99 per cent chance no one will know that you paid only $100 for what looks like a $1,000 Coach bag. Even high-end fakes, like a $30,000 Birkin handbag, also cost $100.
IS IT LEGAL?
Fake handbags are a bit different from diamonds since the seller is selling the bag with the Coach or Birkin name on it but without the company’s approval. So, in this case, the seller is breaking the law.
Should you care? Is there any risk of being charged if you merely buy for your personal consumption and not for resale?
It turns out there is not. No consumer has ever been prosecuted for owning a single fake. Even manufacturers of branded goods are not pushing law enforcement to nab individual buyers of fakes. They only want the re-sellers.
Where to buy fakes? Thailand takes first place for having low prices and great variety. Fakes, however, are found throughout Asia, except in Singapore.
Here at home, the authorities may have over-done it. Their crackdown began 20 years ago and has led to the “shortage of fakes” that we suffer from today.
Next posting: Look humble and save big.
Larry Haverkamp
August 6 2013
Source: http://www.btinvest.com.sg/blogs/2013/08/06/part-ii-investing-in-collectibles/
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