Antiques appeal still growing

Jan 21 2010 by Chris Knox, The Journal

With global stock still in their earliest stages of recovery and interest rates helping to make only the most minimal of returns on investment, people are now looking elsewhere. Christopher Knox finds that the art and antiques market has remained robust since the onset of the recession.

WHILE most investments still look decidedly unreliable, the market in arts and antiques has continued to remain strong.

Indeed, new figures by the Royal Institute of Chartered Surveyors (RICS) show that prices in the arts and antiques market have risen as consumers look for more reliable investments that can make them money as well as brighten up their home.

Its survey shows that the fourth quarter of 2009 saw continuing price increases in art and antiques, with 17% more surveyors reporting a rise than a fall. This is up from 14% in the previous quarter and the highest since the first three months of the year.

Alternative investment has always been an option, with fine art, antiques and classic cars cited by many financial advisers as the perfect addition to a well-balanced portfolio.

The rush on precious metals has also fed its way into the market, with silver and jewellery remaining the strongest sectors, with 50% and 37% of surveyors reporting rising prices in these categories respectively.

The inherent long-term value of jewellery has been well publicised over the last 12 months, with a stream of “got gold get cash” TV adverts by pawnbrokers doing much to the spread the word.

As such, analysts believe the sharp rise in silver and jewellery investment has more to do with its long-term scrappage value, with investors learning important lessons from the current recession and ensuring that their asset mix isn’t over-exposed to stocks and shares by the time the country is plunged into the next one.

Valuer Jim Railton, of Alnwick, Northumberland, said: “One of the real success stories of the recession has been the increase of interest in silver items and jewellery.

“They have just gone up and up and up and have been some of the most prized items at the sales rooms here in Alnwick.

“When it comes to furniture, people can now pick up an antique table for a fraction of the price they would pay in somewhere like Ikea. By buying from an auction house they are also making an investment.”

RICS North East Chair, David Coulson, said: “Arts and antiques have remained pretty resilient throughout the recession and this latest survey once again demonstrates their strength as an investment class.

“It is interesting to see the contemporary market improve, although whether this is a temporary improvement after the Frieze art fair last October or a more solid turnaround remains to be seen.

“However, it is clear that more traditional ‘safe haven’ items are still the preferred lots. As gold prices remained strong at the tail end of the 2009, the market witnessed heightened activity in precious metals and the demand for quality pieces was particularly noticeable in the sales rooms.”