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CAPITAL GAINS AND THE RATE OF RETURN ON A STRADIVARIUS
Authors:MYRON H. ROSS  SCOTT ZONDERVAN
Abstract:What is the return on a Stradivarius? The return equals the capital gain. The return on specific violin sales averages 2.17 percent. The best Stradivariuses were made in the “Golden Period.” Prices were significantly higher for Golden Period violins than for the other three periods examined. However, the rate of return was not significantly different for the four periods, with an overall return of 2.18 percent. When other factors (insurance, taxation and user benefits) were taken into account the rate of return varied between 4.7 and 1.2 percent.
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