Stradivarius Violins Entrenched in the Marketplace
Art, like many other tangible objects, is assigned a monetary value and musical instruments are not an exception to this phenomenon. Old antiques, artworks of the ancient masters, are notorious for being priced at incredulous values ranging in the hundreds millions. Of Stradivarius’s violins that exist today, the most expensive is the Lady Blunt, which was bought for around 16 million USD in 2011.
Not much is known about the price of the Huberman prior to being in Huberman’s possession. What we do understand is that the first recorded owner was Hippolyte C. Silvestre whom must have handed it over to W.E. Hill & Sons in 1894. Following that, British violinist George Alfred Gibson took ownership of the violin, later returning it to W.E. Hill & Sons. Bronislaw Huberman received this violin as a gift until it was stolen in 1936.
Not much is known about the price of the Huberman prior to being in Huberman’s possession. What we do understand is that the first recorded owner was Hippolyte C. Silvestre whom must have handed it over to W.E. Hill & Sons in 1894. Following that, British violinist George Alfred Gibson took ownership of the violin, later returning it to W.E. Hill & Sons. Bronislaw Huberman received this violin as a gift until it was stolen in 1936.
At 1936, the violin was priced at $30,000 USD, the amount of money Huberman’s insurance company, Lloyd’s of London, paid to him in compensation for his loss. Approximately 50 years later, once the violin was recovered and brought back into light, Lloyd’s of London appraised the violin at $1.1 million USD (Ms. Hall, the returner, was given a finder’s fee that was 25% of the violin’s full appraisal cost).
Norbert Brainin purchased the violin for $1.2 million USD, an additional $100,000 USD, just one year following the retrieval of the stolen violin. Thirteen years later, Grammy Award winning violinist Joshua Bell purchased the Huberman Stradivarius for just under the asking price of $4 million USD. This is approximately equal to a 333% increase in the violin’s price. |
The Huberman reveals our emotional and romantic relationships to material goods
The Huberman and Stradivarii violins are accessed as economic investments
While there have been studies on the monetary value of Stradivarius and other antique violins, there have not been many. Studies have primarily focused on monetary investment such as one by Ross and Zondervan (1989) who both concluded that the rate of return, or the profit of an investment, of a Stradivarius was approximately 2% the original purchase price. Their methods had to take consideration the nature of the violin exchange market: some are sold by musical instrument dealers while, the more publicized, are sold through auction, which would skew data about violin pricings. Additionally, the cost of maintenance, for musicians in particular who must do regular tune ups, will decrease the rate of return for the instruments.
In a more recent study, two economists at Brandeis University, Graddy and Margolis (2011) theorized that old, Italian violins could be perceived and exploited as a monetary investment as their rate of returns are consistent. The increasing price of the Gibson ex-Huberman violin reflects this trend of constantly increasing monetary values to antique violins. While we think of investors as a single person, recent institutions are also included in this group. Institutions have expressed significant interest in purchasing these Stradivarius violins primarily to loan out to talented musicians for their usage (for a fee of course). In some cases, these institutions hold violin-performance competitions where the winner has the opportunity to be loaned a Stradivarius for his/her music. These violins can be retracted at any point in time in some cases. (This is noted by one case in which a woman had to return her Stradivarius as her recent marriage supposedly demonstrated her lack of dedication to her musical profession.) In general, we conclude that perhaps it is in the antiquity and the ownership of these violins that will make them continuously pricier and pricier.
In a more recent study, two economists at Brandeis University, Graddy and Margolis (2011) theorized that old, Italian violins could be perceived and exploited as a monetary investment as their rate of returns are consistent. The increasing price of the Gibson ex-Huberman violin reflects this trend of constantly increasing monetary values to antique violins. While we think of investors as a single person, recent institutions are also included in this group. Institutions have expressed significant interest in purchasing these Stradivarius violins primarily to loan out to talented musicians for their usage (for a fee of course). In some cases, these institutions hold violin-performance competitions where the winner has the opportunity to be loaned a Stradivarius for his/her music. These violins can be retracted at any point in time in some cases. (This is noted by one case in which a woman had to return her Stradivarius as her recent marriage supposedly demonstrated her lack of dedication to her musical profession.) In general, we conclude that perhaps it is in the antiquity and the ownership of these violins that will make them continuously pricier and pricier.
Conclusion: Antique violins are a projection of our very own historical and sentimental values; they have played roles similar to companions. These violins, while owned in the realm of a small niche, have become a means of investment in modern-day society. The value of the Huberman, and other Stradivarius, will likely increase in price so long as the historical memory and the musical legacy are not lost.
Sources:
* Cozio: Identification and pricing information about fine stringed instruments http://www.cozio.com/Instrument.aspx?id=147
* Graddy, K. and Margolis, P. 2013. Old Violins: A New Investment Strategy? http://www.brandeis.edu/global/world-ready/centers/rosenberg/accessible-briefs/Global_Finance_Brief_Graddy.pdf
* Graddy, K and Margolis, P. Fiddling with Value: Violins as an Investment? Economic Inquiry, 2011, 49: 1083-1097
* What Exalts Stradivarius? Not Varnish, Study Says. 2009. http://www.nytimes.com/2009/12/04/science/04strad.html?_r=0
* Richins, M. Valuing Things: The Public and Private Meanings of Possessions
* Ross C. and Zondervan S. Capital Gains and the Rate of Return on a Stradivarius. Economic Inquiry. July 1989, 529-540.
* Cozio: Identification and pricing information about fine stringed instruments http://www.cozio.com/Instrument.aspx?id=147
* Graddy, K. and Margolis, P. 2013. Old Violins: A New Investment Strategy? http://www.brandeis.edu/global/world-ready/centers/rosenberg/accessible-briefs/Global_Finance_Brief_Graddy.pdf
* Graddy, K and Margolis, P. Fiddling with Value: Violins as an Investment? Economic Inquiry, 2011, 49: 1083-1097
* What Exalts Stradivarius? Not Varnish, Study Says. 2009. http://www.nytimes.com/2009/12/04/science/04strad.html?_r=0
* Richins, M. Valuing Things: The Public and Private Meanings of Possessions
* Ross C. and Zondervan S. Capital Gains and the Rate of Return on a Stradivarius. Economic Inquiry. July 1989, 529-540.