Authentication Cost

The cost of verifying that an object is genuine, such as expert opinions, certificates and scientific testing.

Example

Paying a specialist to confirm a painting is by the named artist before sale.

It is paid on entry and often again on exit, and a failed authentication can make an object close to worthless.

Provenance — The documented history of ownership of an object such as a painting, watch or bottle of wine.
Holding Cost — The ongoing cost of owning an asset, such as storage, insurance, maintenance and fees, whether or not it produces income.

Appraising one item: authenticate before you price, not after — Five checks on one specific opportunity, starting with proof the object is genuinely what it claims to be - because a confident price on a fake or misattributed item is not a discount, it is a total loss waiting for a buyer to notice. (13 min)
A round trip through an auction house can cost 40 percent before the item has moved at all — Buyer's premium going in and seller's commission coming out compound into a breakeven hurdle most buyers never calculate - on top of holding costs and, in several jurisdictions, a higher tax rate reserved specifically for collectibles. This lesson is general information, not personal tax or legal advice, and rules vary by jurisdiction. (13 min)