Collectibles Clean up

By+staff+reporter+CHEN+JING

CHINAS rapid economic development has ignited a collection craze. Chinaware， jade articles， bronzeware， paintings and calligraphy， furniture， stamps， coins – all abound in the collectibles market these days. Prices of quality items at auctions constantly amaze.

The Fifth Craze

Collectibles are today one of the major popular investments， apart from stocks and real estate. China is the worlds second biggest artworks market. Statistics from the Beijing Association of Auctioneers reveal that 2，347 auctions were held in Beijing in 2013 with transaction volumes reaching RMB 34.16 billion， an increase of 15 percent and 8.8 percent， respectively， over the previous year.

Ma Weidu， celebrated collector and curator of Beijing Guanfu Museum， points out that historically China had witnessed four collection crazes： in the late Northern Song Dynasty （960-1127）， the late Ming Dynasty （1368-1644）， the Qing Dynasty（1644-1911）， and the Republic of China （1912-1949）. Today， the peak of the fifth craze boasts the largest scale in history， characterized by its pervasiveness and the enthusiasm it generates among everyday people.

In the Northern Song Dynasty and in the midQing Dynasty， collections prevailed mainly among imperial families and the upper classes. The concept of collecting valuable items took shape among the common people during the other two crazes： of the late Ming Dynasty and in the transition period from the late Qing Dynasty to the early Republic of China. Yet today， ordinary people play a significant role in this fifth craze， whereas the national and cultural elite are the minority in collectors circles. Nevertheless， the collectibles owned by the nation and its elites are quality antiques， while most of those owned by common people are mediocre artworks.

This eras craze has several characteristics. First， it is widespread. Antique markets can be found all over the country， and collectibles are a topic on everyones lips.

Second， it boasts a tremendous number of avid collectors， totaling nearly 100 million nationwide. Moreover， the number of private museums in China has risen to over 300.

Third， the range of collectibles is diverse. In the past， collectors were fond of jewelry， gemstones， paintings and calligraphy， as well as different types of wares. But today， seals， trademarks， cigarette cases， tickets and certificates also appeal to collectors.

Fourth， organizations and institutions associated with collectibles keep emerging. The nation now has over 500 organizations and institutions， along with about 130 magazines， associated with collectibles.

Fifth， collectibles have become a hot topic. Chinese media extensively cover it in various ways. TV programs like Treasure Evaluation are especially popular.

Sixth， Chinese collectors and collectibles are going global. The previous four crazes emerged only in certain areas and circles inside China， and each of them had their own restrictions. But the reform and opening-up policy over the past three decades has removed almost all limitations and has consequently promoted Chinese antique collections to expand globally. Chinese collectibles have become influential in， as well as being influenced by， the world.

Last but not least， financial capital is venturing into the field. Certainly， money and collectibles are inseparable. However， the cash aspect of the current collectibles mania differs from previous crazes. Large amounts of capital from banks， enterprises， funds and the insurance industry are invested in this field， but with profit rather than accumulation in mind.

Industry Chain

The collection craze has spawned an industry chain.

Xu Jia is on the staff of www.96567.com， the na- tions biggest online company for coin and stamp collections. She is impressed by the Chinese peoples passion for collecting. “As people are getting richer， many like to spend on collectibles，” Xu told us. “Though our clients come from different social strata， they are keen for two reasons.”

Some clients see collectibles simply as an investment. They stress the potential for appreciation. Therefore， they prefer older items that are in demand on the market， such as paintings and calligraphy， stamps and coins. Generally speaking， they do not focus on specific collectibles， so are flexible in either buying or selling. If they cannot afford expensive quality goods， they pin their hopes on separating the wheat from the chaff – judging goods by their own artistic criteria， so as to purchase valuable objects at affordable prices. For instance， some people invest in artworks by the students of masters， because they are cheaper. Such an investment perception is prevalent among middle-aged people who have reached a certain level of economic power， or the elderly who wish to pass down collections to later generations.

Other collectors are motivated by interest and passion. They include young people who have just ventured into this field， and collectors of less popular items. Targeting a specific category， they usually spend a lot of time studying and researching collectibles and possess an in-depth understanding about their niche. They choose carefully before purchasing. Once they decide to buy， they seldom sell.

According to Xu， many customers come regularly to her company to buy collectibles. Each employee deals with business valued at tens of thousand yuan per month. More customers come for consultation. People from all walks of life enjoy getting together to indulge in their common hobby.

Xus company regularly organizes training and lectures. Some clients also gather occasionally to communicate and exchange ideas. These activities create cycles of purchase， dissemination， communication， and counter-purchase. In the meantime， an industry chain for collection businesses， including collections appraisal and e-commerce， has been formed.

Bullish Market

On October 21， 2013， the Nanjing Cultural and Art Assets Exchange Square opened its online center for coin and stamp trading. The center first listed six types of coins including colored gold coins themed on the novel Journey to the West， and colored silver coins themed on Chinas table-tennis team or with images of dragons and snakes. One special stamp with the painting Ode to the Goddess of the Luo River was listed at the same time.

The initial batch of listed collections has the following features. First， six out of the seven items are commemorative coins. Second， multicolor coins are in the majority. Third， the themes are diverse， including Chinese zodiac animals， classical mas-terworks， and sports， to name a few. Fourth， prices can meet different demands according to collectorsbudgets. A stamp can cost tens of yuan， silver coins a few hundred yuan. Prices of colored gold coins range from thousands to ten thousands of yuan. Lastly， average prices are lower than market prices.

These coins and stamps have seen reasonable levels of distribution， having been circulating for years. Each boasts a distinctive feature and investment value. The colored gold coin themed on the“Havoc in Heaven” story， from Journey to the West， won the honor of the most popular preciousmetal commemorative coin of China in 2002. It was minted in Switzerland， and combines the art forms of classical literature and Beijing Opera. The colorful silver coin themed on Chinas table-tennis team contains design flaws. Therefore， the coin is expected to keep increasing in value， but its current price is still affordable to a wide range of collectors. Silver coins with images of the dragon and snake are moderately priced. The zodiac animals theme is especially popular in China. A stamp with the painting Ode to the Goddess of the Luo River was once selected as the best printed stamp and a top special stamp， while its price is attractive to most people.

Some insiders believe that the current assessment value of Chinas stamps and coins market is around RMB four trillion. Millions of people have been investing in coins and stamps. As works of art， stamps and coins may be high in artistic value but low in their investment threshold. They are the collectibles that garner the highest number of participants and the greatest social infl uence.

In the past， barter trade in coins and stamps had several disadvantages since it is diffi cult to cash in and to distinguish genuine from fake. But today， these problems are expected to be solved through electronic transactions， which meets the needs of the times.