An item’s investment value shouldn’t be your first consideration.
I have a deep passion for antiques and art. As an amateur collector and with connections to highly valued appraisers, I rely on reputable resources like WorthPoint. WorthPoint is the largest online platform for researching, valuing, and buying/selling antiques, art, and collectibles. It provides an extensive library of virtual books and valuable insights into a wide range of collecting topics.
Recently, I stumbled upon an article by Wayne Jordan on art and antiques as an investment. I thought it would be worth sharing the key takeaways with you.
Investing in art and antiques may not have been a consideration for me personally, except for some numismatics I purchased for my grandchildren and godchildren. I believe that collecting should be driven by personal interest, meaning, and beauty. However, I acknowledge that there is a significant market for antiques as investments, and some of you may be considering adding them to your investment portfolio.
While there have been instances of high appreciation in antiques and art, it is essential to recognize that the art and antique market is not regulated like stocks and bonds. Reputable dealers can vouch for the authenticity of their items, but not their future value or sale price. The antiques, art, and collectibles businesses operate in an unregulated environment, similar to the Wild, Wild West. There is no oversight or accountability unless fraud occurs and is detected in time for prosecution. It’s crucial to understand that a “regulated market” does not exist in this industry.
Before making any investment, it is crucial to conduct thorough research on the current market for similar items. Whether you are considering art, coins, antiques, or any collectible, understanding price trends and sales data is essential. There are platforms like Artnet.com and WorthPoint that provide comprehensive databases with millions of auction results, prices, and reference materials for art, antiques, and collectibles.
Individuals and private vendors are not required to report their sales and acquisitions, making it challenging to obtain comprehensive market information. However, reliable sources like WorthPoint and other auction houses can provide valuable insights.
The question of liquidity is essential when investing in art and antiques. You may find yourself in a situation where you need to sell your assets, whether it’s for estate planning or seeking alternative investments. Liquidating these items can be a complex and costly process. Auction houses and private firms may charge significant commissions, sometimes reaching 40% or more of the sale price. It can also take time to schedule a sale or find the right buyer. Alternatively, selling on platforms like eBay may offer more immediate liquidity, but authenticity, condition, and successful delivery become your responsibility, with no guarantee of price.
In conclusion, I share Mr. Jordan’s opinion that an item’s investment value should not be your primary consideration. Instead, focus on buying something beautiful, functional, or with a compelling story to tell. Invest in items for their intrinsic value. However, if you are looking to build an investment portfolio of collectibles, it is advisable to use a reliable database like WorthPoint to assist you in making informed decisions.
If you’re interested in learning more about investment opportunities and exploring the world of art and antiques, visit investment for insightful and trusted guidance. Happy collecting!
