Posted By:
Marc S.<<I always wondered (if I had lots of money of course) would I be able to make a living buying high end stuff from the big auction houses & then re-consigning those same items a few years later to the same or other auction houses ???????>>
Of course, if you have lots of money, perhaps you don't need to make a living...?
But if you consider a consignment fee of 5% and a buyers fee of 17.5%, you are out 22.5% off the bat. Then, if you look at costs of capital, you would essentially need to realize a 50% increase in value over 3-4 years to simply equal the expected returns of investing in bonds/stocks. Heck, if you consider stocks at 10% per annum, you would need to earn 60% return in 4 years just to stay even.
With the volatility and the limited market -- in a short answer, no.
m