Antiques as a way of investing
Analysts note a steady increase in the price of antiques. That is why this market is so interesting for investing. In addition, on average, any antique item rises in price by 20-30% per year, and this is a good profit. Therefore, the older the antique exhibit, the more expensive it will be every year. For example, Pablo Picasslo’s painting “The Boy with the Pipe” cost $ 34 million in 1952, and already $ 104 million in 2004.
What can be considered antiques and what not? By definition, antiques include antiques that are over 50 years old.
What are these things? First of all, it is furniture and household items (dishes, vases, ancient mechanisms, etc.), books, icons, paintings, porcelain, glass, silver, coins.
However, as in any investment, investments in antiques have their pitfalls. Investing in antiques is not suitable for those who are counting on quick profits, since this is a long-term investment, the interest on which is growing every year.
Also, to engage in the purchase of antiques, you need free cash and considerable. Therefore, buying antiques for the last money in the hope of successfully selling and making money is likely to fail.
However, there are exceptions here and here is a good example. The Adams family, resting and traveling in Europe in their cars, accidentally drove into a flea market in a small town. There they saw many old household items. Without hesitation, they spend all their money and hammer the car with utensils. Upon arrival home – they successfully sell the purchased exhibits and earn good money. So unexpectedly, a business was born in them – they travel across Europe to flea markets and buy valuable and antiques, and then sell them.
Of course, in order to find a really worthwhile thing from a large amount of junk, you need to have a “trained eye”. Therefore, it is risky to sail in the vast sea of antiques, if you do not possess such a gift.
In addition, if you are committed to serious investments and are looking for a direction that will bring you good profit in the future, you can not do without the help of consultants.
Another important point in antiques, especially for paintings and icons – there are a large number of fakes. Therefore, it is better to buy at special auctions, where each exhibit is carefully checked. Also, due to the fact that paintings and icons are expensive, they are often associated with crime, kidnapping from museums or private collections. Be careful when investing, consult with experts, art historians about the intricacies of this matter.
Antiques as a way of investing
Why do we need consultants?
Professional consultants work with antiques priced from 50 thousand dollars, and their commission is 1-2% of the value of the exhibit. If you need an examination to determine the authenticity of the goods or an official document – it will be up to 5%. However, you may not need any specialist who is knowledgeable in history or art. You need a specialist who can assess the profitability of your investment – choose the right direction, help you choose an item, draw up a deal correctly, evaluate how much this thing will gain in price in order to sell it as profitably as possible. He will also be able to help with the restoration of the exhibit if necessary, its storage.
Should I contact investment funds?
In addition to private collectors, there are also investment funds that act as dealers, advise the client, buy and sell items on his behalf. They also perform restoration and storage of items, analyze the market, providing the client with the necessary information. Some banks have opened special departments – art-banking, where they also provide clients with advice, necessary loans, and analytics. Experts suggest that it is better to buy or sell, or simply exchange in the collection.
Investing in an expensive thing, without professional advice, you are at great risk, since the dealer market is associated with risks and sometimes you can earn up to 500-700% profit on fakes, while on the ordinary thing only up to 30%. Therefore, do not contact the so-called “black” dealers, if in doubt about the offer – it is better to always double-check.
What is more profitable to collect a collection or buy individual items?
The right collection will always be valued above a single item. However, there are items that are individually expensive. The value of such items will depend on their total number in the world, and the less they are, the higher the price. The most liquid items in antiques are money. Antique silver or gold coins are valuable because of their material. And if their circulation was also small, then the price of the coin goes up. It can be jubilee coins or coins of a monarch who did not rule for long. An amazing fact, but mistakes are more expensive here. If there is a typo on a paper bill or coin, its price will be higher than the same bill, but without a typo.