Welcome to Cultural Assets Insider for 19th January 2022 – FREE issue.
Each week we give you the scoop on undervalued, mispriced and hidden gems in Alternative Investing.
Table of Contents
Podcast
Last week, Horacio sat down with Mendy Ouzillou, founder of Skyfall Meteorites and just about the world’s expert on meteorite collecting. It’s hot off the press, so I’m only halfway through, but WOW, I am hooked.
Did you know meteorites can carry probiotics to earth from outer space? Or that there’s a whole black market dedicated to meteorite dealing, partly supplied by nomadic tribes who find these things when they land in the Saharan desert?
Nope, nor did I. You’re welcome.
Cultural Assets performance 2022
This year has started with two straight downward weeks, though the rate of decline is decreasing. By our reckoning, cultural assets are overvalued by an average of 13% across Rally and Otis, so there may be more room to fall before the overall category is a buying opportunity.
Last Week in Cultural Assets
Fractional secondary markets
Paintings and science items led the way down, but toys didn’t escape the downward trend.
Auctions
Vinyl and other musical assets continued their march upward at RR Auctions last week. The second through fourth-highest lots were Prince albums and a set of his picks.
Another signed Prince album (Controversy) sold for $6,909, while an album signed by Tom Petty and all the Heartbreakers sold for $3,336.
Several other albums signed by legends such as George Harrison and Elton John were also on the block.
Vinyl is about to explode as an asset class, and we’ve spoken about it a lot on our discord.
The most interesting/odd asset was a signed portrait of Ho Chi Minh, which sold for $5k.
Several meteorites (listen to the podcast!) sold at Heritage over the last few days including a Sericho meteorite for $23,750 and an NWA 13621 meteorite from Mali for $15,625.
Loads of theropod and T-Rex teeth were on offer as well, but the lot that taught me the most was a fossilised leg from a two-foot-tall horse that lived 30m years ago. Heritage’s write-up helpfully notes that modern horses are considerably larger.
This Week in Cultural Assets
Fractional IPOs
Busy week for IPOs this week with three on the dock.
Leica King of Thailand Camera 1996
- Market Cap: $32k
- Inferred Value: $25k
- Drop Details: 1/19/22 on Rally
- Recommendation: [INSIDERS ONLY]
Omega Seamaster worn by Pierce Brosnan
- Market Cap: $80k
- Inferred Value: $65k
- Drop Details: 1/20/22 on Rally
- Recommendation: [INSIDERS ONLY]
George Washington Signed Letter 1780
- Market Cap: $150k
- Inferred Value: $100k
- Drop Details: 1/20/22 on Rally
- Recommendation: [INSIDERS ONLY]
Secondary Markets
There are two new historic assets trading this week on Rally, including one of the most-hyped items in the fractional space.
The broadside Declaration of Independence opened for trading on Rally Tuesday and immediately gained over 30% to a valuation of $2.7m. According to Rally co-founder Rob Petrozzo, over $2.6m order volume was placed across over 76k shares. I have no idea what the previous record open was, but this smashed it.
5 yrs ago, “shares of collectibles” made no sense to most ppl.
— Rob Petrozzo (@robpetrozzo) January 19, 2022
⏩ Today @OnRallyRd 76,000 individual share units on $2.6M in new order volume placed on *ONE* 250yr old item
(+ thousands of after-hours overlap in anticipation of tmrws open)
It happens slow, then *really* fast. pic.twitter.com/fn1J46MkXF
At Auction
More urban art from Heritage this week with several relevant lots. Skateboard decks take pride of place with some very cool offerings.
This piece from Martin Whatson is my favourite. Similar pieces have gone for between $5k to $7k for the artist.
Two Lucasfilm collabs for Boba Fett figurines paint a stark difference between KAWS and BE@RBRICK with the former’s bid sitting at 10x the latter.
