Schmoozing in London With the World’s Wealthiest

Walnut panels cover the walls from floor to ceiling. Huge antique chandeliers light up the room. The carpet is so fine, you almost expect the doorman to tell you off for walking on it.

The people in this room are among the richest in London.

The men wear tailored suits and monogrammed shirts.  The women wear expensive jewelry and designer shoes. Everyone sits on coffee-colored antique chairs with light green felt cushions. They wipe their noses with silk handkerchiefs and drink their tea like aristocrats. 

When I thought of the auction room at Christie’s or Sotheby’s, this is the scene I used to imagine.

Last week I went to Christie’s and attended an auction. They were selling a collection of sporting art, wildlife and dog paintings. It was nothing like I had imagined.

First of all, Christie’s looked like an office building under renovation or a busy warehouse.

Anyone can attend an auction. You walk right in off the street. I found the auction by following the sound of the auctioneer’s voice. It wasn’t even in a room, but along one side of a large hall.  One man had shorts on. Another wore a tank top. People milled around and chatted to one another. Phones rang. Clerks shouted at each other, ignoring the auctioneer.

I was amazed how fast they moved the inventory. I was there for an hour and they must have sold at least 100 items. That’s nearly one painting every thirty seconds!

London is where the wealth is. Britain was the richest country in the world in the 18th and 19th centuries. Now it’s the place where the richest people in the world send their money. I’m talking about Russian oligarchs and Arabian oil tycoons. The serious spenders. Rich people love London. That’s why you find the most famous auction houses, antique retailers, museums and art collections there. 

In DailyWealth, we believe the assets used by high society to preserve wealth through the ages – like the beautiful paintings I saw at Christie’s - are at the beginning of a price run that may last another decade. I went to London last week and investigated all the different investments that London’s wealthiest families use to protect their wealth.

I sat down with the guys from Stanley Gibbons and discussed investment grade stamps. Stanley Gibbons is the most important company in the stamp-collecting universe. They opened for business in 1856. Their shop, 399 The Strand, is Woodstock for stamp collectors.

I discussed autograph and memorabilia collecting with Paul Fraser’s son Tim. Paul Fraser is the chairman of Stanley Gibbons and one of the largest memorabilia dealers in the world. Tim is his apprentice.

Then I rushed over to A. H Baldwin on Adelphi Terrace. Baldwin is a rare coin dealer, founded in 1901. I wanted to know whether the British public had started buying gold coins yet. I spoke to the managing director. He gave me the impression they hadn’t. Collectors and dealers are still his main source of custom, he told me.

Finally, I made contact with two antique furniture experts. Antique furniture is very unpopular right now. No one wants it and prices are as cheap as they’ve ever been.

The time is right for investing in tangible assets. Prices are already beginning to move higher. Besides, everyone we know has all their money in stocks and real estate right now. A little diversification wouldn’t hurt. It seems sensible to us that people should sprinkle some of their money into tangible assets. Not only are they beautiful items with historical value... they protect your money at the same time. This is how rich people have done it for centuries, before stocks and bonds were all the rage.

It’s easy to invest in this stuff too. I have all the details and I’ll write everything up in DailyWealth over the next few weeks...

Good investing,

Tom