Antiques and Art as an Investment
As with
all investments antiques and art are at the mercy of fickle markets and fashion.
However unlike many investments antiques and art have added value in that they
are beautiful things that are useable in and around the home. However antiques
and art have consistently remained a sound investment over time.
The best indicator of how good an investment antiques and art is, is given in the annual Antique Furniture Index published for the first time in 1968 by the Antique Collectors Club, examines seven categories of antique furniture. These figures are then compared to both property prices in SE England, stocks and shares and retail price index.
Since 2002 the gap between AFI and the property index has slowly diverged until 2006 when the AFI seemed to stabilise. The FT250 index has only recently overtaken AFI although again 2006 saw this trend slowing considerably.
The present situation is in simple term one where prices of antique furniture is around the levels seen in the early to mid 1990's a fall of some 18% since 2000. Therefore we have almost certainly seen the bottom of the market prices no are certainly beginning to rise. A good time to buy in any market!!
The art market is one that is more aligned with fashion. It is well known for its hot spots and flavours of the month. These trends are however much more long term. However as with furniture the mantra of quality is most important, as quality will always hold a stronger value.
In looking to buy antiques and art a number of considerations need to be made:-
What is the purpose of the purchase, investment, to use, because you have fallen in love with the piece? All are valid reasons for a purchase. In most cases elements of each are factors.
What guarantees and after service is available
Factors that concern the value of antiques and art:-
Quality of the piece
Condition the more original the better
Restoration
Provenance - adds value
We are happy to discuss and advise on any matter when buying antiques and art from Timberhill Gallery