It’s important for collectors to understand some of the various market manipulation techniques in existence, not necessarily so collectors can use them, but more importantly to make sure they’re not used on the collector.
The art of market manipulation
One of the foremost experts in the field of market manipulation techniques is Harry Rinker. In his book, How to Make the Most of Your Investments in Antiques and Collectibles, he tells the importance of investors using clubs for their benefit.
Keep in mind, one of the most vital weapons in most investors’ arsenals is the knowledge of how to manipulate the various markets to their advantage. One of the favorite techniques of investors is the use of clubs.
Dos and don’ts
This approach is so popular since most collectors never entertain the thought of such a thing being done to them. This is exactly why it works so well.
The basics of this approach can best be told by taking excerpts from Harry Rinker’s masterpiece, How to Make the Most of Your Investments in Antiques and Collectibles:
Do not tell you are collecting as investment
“The one thing you must be very careful not to do is tell a collector you are collecting for investment purposes. You must disguise yourself as a fellow collector. While I do not like deceit, it is absolutely essential in this case. Collectors love objects; they resent anyone who views them primarily from a monetary point of view.”
Do build a portfolio
“Beginning in the third year of your investment plan and continuing until the final sale of your investment portfolio, your role divides into two parts: continuing to build the portfolio and manipulating the antiques and collectibles market to achieve maximum gain for your portfolio.
“Both will remain equally important until the final sale, so you must force yourself to maintain a balance between the two.”
Don’t lose sight of developing potential buyers
“During the process of manipulating the market, never lose sight of the fact that your primary goal is to develop potential buyers among collectors, dealers, museum professionals, and others.
“First, try to find a collectors’ club.The real value of belonging to a collectors’ club is to gain access to its mailing list. In almost every instance it contains the names of the top private collectors in the country.”
Do join a collectors’ club
“If a collectors’ club exists for a category in your portfolio, and you have not already joined it, you should do so now. In the third and fourth year of your investment plan, attend all meetings and become politically active within the group.
“During the entire time, continue to stress your collecting interest and not your financial interest.”
Do start a collectors’ club
“If no collectors’ club exists, consider starting one. A few advertisements in trade publications will attract the first dues-paying members. The club’s newsletter can be done quarterly. The dedicated collectors will join a club no matter how often the newsletter is published.
“Is it worth your time to start a club? The answer is a firm yes. Dedicated collectors will put their names and addresses on collectors’ club applications much quicker than they will hand this information out to an individual. You will use the club for only a few years. If the club is successful, you can turn over the leadership to someone else once divested of your portfolio.”
Read Rinker’s book and master the techniques
Investors using clubs to separate collectors from their hard earned money
is just one of the many manipulation techniques Harry Rinker reveals in
his book, How to Make the Most of Your Investments in Antiques and Collectibles, published by Arbor House. Harry’s book is one of the best friends a collector can make.
Copyright 1991, Greg Tunks
