Collecting old pieces of art (as well as porcelain, silver, coins, furniture, paintings, weapons) is not just a hobby, but also an opportunity to make huge profit.
What is called antiques:
Antiques are things that are over 50 years old. These can be paintings, household items, coins, books, porcelain. Collectors buy items that may cost from $50,000 to $100,000. But there are items cheaper. For example, up to $1,000.
Investing in antiques will make a profit due to the increase in value of item. During the year, the price of one thing can grow by 20-30%. How to get money by investing in antiques? We have already mentioned this principle in previous articles: “buy cheaper, sell – more expensive”.
Why is it profitable to invest in antiques?
The main advantage of investing in antiques is independence from the economic situation in the world. Thus, the price of a porcelain figurine made in Germany or Japan will not be affected by jumps in the dollar or stock market crashes. Another positive side of investing money in antiques is the possibility of a long-term investment. The longer you keep a thing, the more its price increases.
Collection vs. individual items?
If the collection is chosen correctly, it is always valued more than individual items. But at the same time only the famous item can cost more than the whole collection. If such items are available on the market in limited quantities, their price will be very high.
Where can I buy antiques?
No one doubts the high value of the item if it is exhibited by major global auctions – Christie’s and Sotheby’s. Inexperienced investors may sometimes think that the subject does not deserve such a high price. However, the reputation of auctions is well-known, so the cost of the lot is always fully justified.
Risks when investing in antiques:
Of course, there are also risks. What difficulties can be when investing in antiques? Let’s consider.
- Buying a fake instead of an antique. Unfortunately, this can happen with any investor. One of the famous stories related to the work of Russian artist Ivan Shishkin. The famous Sotheby’s auction in 2004 exhibited a picture of the author, «Landscape with a Creek», written around 1863. The initial price of the lot was 700,000. However, a week before the sale, it turned out that the picture was a fake: the work turned out to be a picture of a Dutch author, Marinus Kukkuk. Just a little retouching and experts could not find the differences. Denied the authenticity of the staff of the Tretyakov Gallery. To avoid such incidents, it is better to always consult with experts. If you order the expertise from a consultant, then count on 1-2% of the value of the object of art.
- The presence of large taxes and duties for the import/export of antiques. Before planning to transport a thing from one country to another, even before customs control, it is necessary to find out all the relevant laws and details of the procedure. For example, if you take an item from England, it should not fall into the category of “treasure”. In other words, it should not be a masterpiece from a museum. If we talk about Russia, then you can import any antiques, but only those items that are less than 100 years old can be exported.
- Possibility of theft due to unreliable storage or loss. Numerous values today are wanted. There are paintings, icons from private collections. The income level of the black business of antiques is easy to compare with the drug trade. And people may compare the turnover to the arms trade.
Summary. Most experts say that today the antiques market is in the process of change. People buy things more thoughtfully, without throwing money down the drain. Many banks in various countries offer the so-called art accounts, allowing part of the profits to invest in art.