Connect with us

Markets

Objects of Desire: Record Breaking Auction Sales in 2021

Published

on

record breaking auction sales 2021

Can I share this graphic?
Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
When do I need a license?
Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
Interested in this piece?
Click here to license this visualization.

Record Breaking Auction Sales in 2021

2021 may have been the year of the NFT, but wealthy collectors still dropped plenty of cash on physical objects. This included the usual items like paintings and cars, as well as some more obscure ones like meteorites.

To gain insight into the world of rare collectibles, this infographic summarizes the biggest auction sales of 2021, spread across 12 different item categories.

The Numbers

The key details of these sales are listed below in tabular format. Some broke all-time records, while others set the record for 2021 specifically.

ObjectCategorySale Price (USD)Auction House
Pablo Picasso’s Femme assise près d’une fenêtrePaintings$103.4MChristie’s
Final text of the United States ConstitutionPrinted texts$43.2MSotheby’s
15.81-carat Sakura diamondPurple-pink diamonds$29.3MChristie’s
1995 McLaren F1Automobiles$20.5MGooding & Company
1933 Double Eagle coinCoins$18.9MSotheby’s
The revolver used to kill Billy the KidFirearms$6.0MBonhams
Grande et Petite SonnerieWatches$5.3MPhillips
1993 Ron Arad “D-Sofa”Furniture$1.6MPhillips
Pair of Michael Jordan’s Nike Air ShipsShoes$1.5MSotheby’s
Necklace featuring a 56.87-carat emeraldEmeralds$1.0MPhillips
4.5B year old Fukang meteoriteMeteorites$702KChristie’s
Hermès Black Togo Birkin 35Handbags$155KBonhams

The Details

Here are some interesting facts and details about these rare collectibles, starting with:

Pablo Picasso’s Femme assise près d’une fenêtre (Marie-Thérèse)

This 1932 painting is a depiction of Picasso’s lover, Marie-Thérèse Walter (1909-1977). Walter is believed to have had a significant impact on Picasso’s work, and the pair had a child out-of-wedlock in 1935.

He loved the blondeness of her hair, her luminous complexion, her sculptural body.
– Brassaï

Sold by Christie’s in New York, this was the first painting to auction for over $100 million in nearly two years. The all-time record holder is Leonardo da Vinci’s Salvator Mundi, which sold for $450 million in 2016 to Mohammed Bin Salman, the Crown Prince of Saudi Arabia.

1995 McLaren F1

Produced between 1992 and 1998, the McLaren F1 is widely regarded as one of the most desirable supercars in the world. It features many innovations that are still rare in modern road cars, including a carbon fiber monocoque (the main structure of the car), active aerodynamics on the underbody, and a centered driving position.

The F1’s legacy is cemented by the fact that only 106 were ever produced, many of which have been owned by celebrities. That includes Elon Musk, who famously crashed his F1 in 2000 without insurance.

The specific car highlighted above was sold by Gooding & Company, a classic car auction company. It has just 242 miles (390 km) on the clock, which translates to an average of 9.3 miles (15 km) being driven on the road per year.

1933 Double Eagle Coin

The 1933 Double Eagle is one of the last $20 gold coins ever produced in the United States. It dates back to an era when the U.S. dollar’s value was tied to gold, which is a system known as the gold standard. The coins were melted down when the U.S. transitioned to fiat money, and only 13 examples are known to exist today.

After selling for $18.9 million, this Double Eagle holds the title as the most valuable rare coin in the world.

The Revolver Used to Kill Billy the Kid

The Colt single-action revolver that was used to kill Billy the Kid is now the most expensive firearm ever sold at an auction. It belonged to Sheriff Pat Garrett, who killed Billy in 1881.

Billy is one of the most notorious figures from America’s wild west era and was responsible for the deaths of eight men, including two sheriff’s deputies during an escape from jail.

Because of Billy’s legacy, this revolver is lauded as one of the most desirable Western firearms in existence. Surprisingly, it was the gun’s first appearance in a public auction.

Final Text of the United States Constitution

This first-edition copy of the U.S. constitution is an incredibly rare and historically significant artifact. The story of how it sold is equally as impressive.

Bidding came down to two parties, one of which was Ken Griffin, billionaire CEO of Citadel. If you’re an investor, that name may sound familiar—Citadel was a hedge fund involved in the r/wallstreetbets saga of 2021.

The other party was ConstitutionDAO, a group of 17,000+ crypto investors who pooled together $47 million worth of Ethereum. The term “DAO” refers to a decentralized autonomous organization, which is an online entity that’s collectively owned by its members without centralized leadership—and that takes action based on transparent rules set on a public blockchain.

In the end, the copy was sold to Griffin for a total of $43.2 million. Organizers of ConstitutionDAO could not place a higher bid because they wouldn’t have had enough money to insure, store, and transport the document.

About Those NFTs…

NFTs only exist in the digital realm, but they’ve quickly become some of the world’s most valuable collectibles. How valuable, you may ask?

For starters, consider the $7.6 million sale of CryptoPunk #3100, a profile picture (PFP) NFT that depicts a blue zombie. Then there’s The Merge, a digital artwork comprised of 312,686 pieces. In December 2021, it was sold to a collective of 28,983 buyers who, altogether, paid $91.8 million.

All of this hype has led some of the world’s oldest auction houses to begin selling NFTs through online events. This includes Christie’s (founded in 1766), which surpassed $100 million in NFT auction sales in less than a year.

Whether this momentum can carry forward is questionable. Interest in NFTs has plummeted, and crypto markets remain incredibly volatile.

Click for Comments

Markets

Beyond Big Names: The Case for Small- and Mid-Cap Stocks

Small- and mid-cap stocks have historically outperformed large caps. What are the opportunities and risks to consider?

Published

on

A line chart showing the historical return performance of small-, mid-, and large-cap stocks.

 

Published

on

The following content is sponsored by New York Life Investments
An infographic comparing low-, mid-, and large-cap stocks, including an area graph showing historical returns, a bubble chart showing how much $100 would be worth over 35 years, a horizontal bar graph showing annualized volatility, and a line graph showing relative forward price-to-earnings ratios, that together show that mid-cap stocks present a compelling investment opportunity.

Beyond Big Names: The Case for Small- and Mid-Cap Stocks

Over the last 35 years, small- and mid-cap stocks have outperformed large caps, making them an attractive choice for investors.

According to data from Yahoo Finance, from February 1989 to February 2024, large-cap stocks returned +1,664% versus +2,062% for small caps and +3,176% for mid caps.  

This graphic, sponsored by New York Life Investments, explores their return potential along with the risks to consider.

Higher Historical Returns

If you made a $100 investment in baskets of small-, mid-, and large-cap stocks in February 1989, what would each grouping be worth today?

Small CapsMid CapsLarge Caps
Starting value (February 1989)$100$100$100
Ending value (February 2024)$2,162$3,276$1,764

Source: Yahoo Finance (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.

Mid caps delivered the strongest performance since 1989, generating 86% more than large caps.

This superior historical track record is likely the result of the unique position mid-cap companies find themselves in. Mid-cap firms have generally successfully navigated early stage growth and are typically well-funded relative to small caps. And yet they are more dynamic and nimble than large-cap companies, allowing them to respond quicker to the market cycle.

Small caps also outperformed over this timeframe. They earned 23% more than large caps. 

Higher Volatility

However, higher historical returns of small- and mid-cap stocks came with increased risk. They both endured greater volatility than large caps. 

Small CapsMid CapsLarge Caps
Total Volatility18.9%17.4%14.8%

Source: Yahoo Finance (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.

Small-cap companies are typically earlier in their life cycle and tend to have thinner financial cushions to withstand periods of loss relative to large caps. As a result, they are usually the most volatile group followed by mid caps. Large-cap companies, as more mature and established players, exhibit the most stability in their stock prices.

Investing in small caps and mid caps requires a higher risk tolerance to withstand their price swings. For investors with longer time horizons who are capable of enduring higher risk, current market pricing strengthens the case for stocks of smaller companies.

Attractive Valuations

Large-cap stocks have historically high valuations, with their forward price-to-earnings ratio (P/E ratio) trading above their 10-year average, according to analysis conducted by FactSet.

Conversely, the forward P/E ratios of small- and mid-cap stocks seem to be presenting a compelling entry point. 

Small Caps/Large CapsMid Caps/Large Caps
Relative Forward P/E Ratios0.710.75
Discount29%25%

Source: Yardeni Research (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.

Looking at both groups’ relative forward P/E ratios (small-cap P/E ratio divided by large-cap P/E ratio, and mid-cap P/E ratio divided by large-cap P/E ratio), small and mid caps are trading at their steepest discounts versus large caps since the early 2000s.

Discovering Small- and Mid-Cap Stocks

Growth-oriented investors looking to add equity exposure could consider incorporating small and mid caps into their portfolios.

With superior historical returns and relatively attractive valuations, small- and mid-cap stocks present a compelling opportunity for investors capable of tolerating greater volatility.

Visual Capitalist Logo

Explore more insights from New York Life Investments

Click for Comments

You may also like

Subscribe

Continue Reading
TheCurrency-SubscribeHere

Subscribe

Popular