Comments on: Are antiques a good investment? http://www.wizzardsblog.com/are-antiques-a-good-investment/ My take on the world Tue, 29 Nov 2011 11:42:42 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: UK interest rates have now been cut to 2 percent « Wizzard’s Blog http://www.wizzardsblog.com/are-antiques-a-good-investment/comment-page-1/#comment-36 UK interest rates have now been cut to 2 percent « Wizzard’s Blog Thu, 04 Dec 2008 12:55:59 +0000 http://wizzardsblog.wordpress.com/?p=110#comment-36 [...] the time to start looking at alternative investments. Check out my previous post about considering antiques as an alternative place to put your money [...] [...] the time to start looking at alternative investments. Check out my previous post about considering antiques as an alternative place to put your money [...]

]]> By: Ron Amundson http://www.wizzardsblog.com/are-antiques-a-good-investment/comment-page-1/#comment-35 Ron Amundson Wed, 03 Dec 2008 09:33:38 +0000 http://wizzardsblog.wordpress.com/?p=110#comment-35 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. 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.

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