My take on the world
Are antiques a good investment?
I saw an article online the other day about alternative investments that will give you a better ROI (Return On Investment) than a savings account with a bank or a pension.
This has me thinking about another kind of alternative investment and that is Antiques. Antiques mostly grow in value as they get older so I think their value isn’t affected by the current financial crisis, you just have pick the right time to sell to a dealer or to an auction house.
So over to you in the comments.
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Thats a tough one, as in many cases, one buys at retail, and generally can only sell at wholesale, ie to dealers, or via auction houses. If something really appreciates it can work out pretty well. Here in the US, antique guns have out performed the vast majority of the stock market, where as art glass and china, unless held for 40+ years didnt do so well. There is also the tax implications, which again is country specific.
Otoh, the timing for purchases is likely going to be pretty good as the economy continues to de-leverage. There likely will be some amazingly great buys, the issue of course is how long it will take to recover, and there are a number of cyclical things to consider as well.
There is the matter of loss… insurance on antique items can be pretty prohibitive, yet, in the case of a fire, flood, or even something as bizarre as a display stand collapsing (happened to a friend, $USD 20,000 in antique china turned to junk in 10 seconds).
Lastly, is the aspect of intangible value… ie having a RS Prussia bowl to look at for 20 years as its ubercool does provide enjoyment to many, just as fine art does for others. Then add in the potential for a fair ROI, all of a sudden the risk factors dont seem to be so problematic any more. Of course at that point, one has to balance the value of an antique as an art object vs its potential as a source of great ROI.
[...] the time to start looking at alternative investments. Check out my previous post about considering antiques as an alternative place to put your money [...]