Today, when we have access to information about money, stocks, bonds, interest, etc., it is interesting that people never knew less about finance. The stock market is increasingly losing its luster. Real estate prices are falling. Interest rates continue to be low (and lower).
It may be time to consider adding some tangible assets to your portfolio.
Investing in antiques and vintage items has become very popular in the last 10 years.
Antiques are among the most popular investments, and according to a new study by Lloyds Private Banking, it is confirmed that investors invest out of love and enjoy it and turn the fun into profit. This study reveals that the return on investment (ROI) of antiques in the next 10 years is expected to be above 35%, with one in six people using this type of investment and investing to protect themselves against market volatility.
Markus Stadlmann, CIO, Lloyds Private Banking said: “Investment-wise, it doesn’t have to mean that business and fun don’t go together, and with just the right approach, you can put everything together and make money enjoying the investment.”
Why would anyone invest in antiques and antique furniture at all?
Do you wonder why people (and businesses) invest increasingly in such tangible assets?
They retain their value and do not lose their value due to inflation.
In the long run, these types of assets do not correlate and do not move in the same way with the more traditional capital and bond markets, and therefore offer investment diversification opportunities. Investing in something you love and enjoy is a great way to make your portfolio unique to you.
One more thing: you have 100% control over your investment – you don’t have to worry about being tricked by investment banks, brokers, misinformation or valuations.
Why investing in antiques has advantages:
Economic benefits: By investing in antiques, you leave a legacy for the old days or for your children, as the value of each antique grows more and more every day. That’s why investing in antiques is a great investment!
Environmental Benefits: The need to manufacture furniture, lamps, chandeliers, etc. is reduced as the use of existing items is extended. With that, we minimize our footprint on our Earth and our nature. By buying antiques you are helping to reduce CO2 waste and therefore helping to conserve the environment (and help stop- or at least slow down global warming!).
Uniqueness: In the past, when there was no mass production, each piece was hand-made or in only a few pieces (certainly not in such mass production as today). With antiques, you can be sure your item is unique!
Upcycling: If you find any antiques too old (or you don’t like the color of wood, upholstery etc.), you can always upcycle them. Upcycling involves giving used items a new meaning. Or another definition: upcycling is the process of creatively transforming old and used items into something completely useful and really beautiful. Beautifully said!
There’s something for everyone’s wallet!
As Financial Express writes: Antiques may not be the most traditional way of investing. But if you know what to look for, they can provide potentially impressive returns in the long run.
Lately, many people have been considering alternative investments such as antiques, art, jewelry, etc. as part of their portfolio. Compared to other investments (chart in the picture), the price of antique furniture in the past few decades has grown even more than the stock indices.
While it may be best to wait a long period to make the investment, this type of investment is for everyone (not just the wealthy), says Michael Moses, a retired NYU professor. “Our research has shown that, over the years, art is a wonderful asset class, in the sense that there is something for every wallet.”
The true value of antiques
The main question was posed by Dodee Crockett, vice president of investments at Merrill Lynch / Dallas, who believes that every purchase must pass this test:
Will the item mean anything to you if it’s not worth the money?
Or, as Arielle McGowen puts it, keep your own taste.
Think about it: Even if you plan to sell the item, in the meantime, you have to live with it, so it’s important to find your style and something that you will enjoy before you start making money. “Try to find something that inspires you, something that reminds you of what you liked as a kid or something you are currently interested in. There is such a wide range of materials available, so you have to find what moves you.”
For some collectors, the true value in antiques and antiques lies in their sentimental value, not their ability to increase monetary value over the years.
That is why it is most important that you choose and buy antiques in which enjoyment will be the biggest investment.
For some collectors, the real value in antique furniture and antiques lies in their sentimental value, not their ability to increase monetary value over the years.
That is why it is most important that you choose and buy antiques in which enjoyment will be the largest investment.
Finally, a few tips from Crockett to help you decide:
Define your area of interest – what fascinates you, what you love, what is your favorite period in history that you would like to have in your home.
Buy top-quality items: Their value will grow in spite of fashion and market fluctuations.
Keep your antiques in good condition. Also, if necessary, use professional restorers for repairs or restorations.
Limit your investment to 10% of your total portfolio.
Keep the pieces long enough to make a profit. In our view, this is a basic rule.
Always look for “pristine” antique furniture, non-upholstered furniture, untreated wood that is in the original version. This is a common professional tip, which of course, is worth it if the piece is in good condition (as we have advised in the previous post that it is ok to upcycle if the item is loose, torn and in poor condition, then you will do a really good thing if you upcycle it!).
And finally, one wonderful thought: Beauty as they say, may be in the eye of the beholder, but the value of an antique is definitely in the heart of the antiques collector. And that’s always how it is supposed to be!
Until the next blog post,
Thanks for sharing your love of antiques with us!