Buyers of Antiques Outnumbered by Sellers?

The International Herald Tribune just ran a very interesting article that all appraisers should read. It is entitled Touch Market for Sellers of Antiques and Heirlooms. The short article touches on the dropping value of antiques and collectibles in the current economic climate. Although the article really offers nothing new, and nothing that we have not already posted about on the AW Blog, it does in fact re-enforce the current economic climate and state of the middle to lower antique and collectibles market.

I know from personal experience many of the phone calls I am getting are from potential clients who really dont want or need an appraisal, but are looking for ways of disposing of property. It is difficult in this market, and sales values and expectations need to be explained in detail to potential clients.

The IHT article states Across the U.S., collectibles dealers and antiques appraisers are delivering bad news, and feeling pain themselves. The reason is simple: potential buyers are outnumbered by desperate sellers.

The article continues Families trying to unload keepsakes for cash are learning that an economy at risk of falling into a deflationary period is taking a heavy toll on the value of these assets, just as it is for traditional investments such as stocks and homes.

Pam Danziger, who studies consumer behavior as president of Unity Marketing, said people who start collections often make a mistake by considering them an investment. And that leads to disappointment when they try to sell them to people who don't share their emotional ties to the items.

"Even if things are 100 years old, it doesn't necessarily mean they're rare or valuable to anyone else," she said.

While experts generally agree that demand remains high and prices good for very rare and top-of-the-line items, the market for mid-range and lower-quality collectibles is down sharply.

"The majority of items have a value under $10,000, and that's the material that's been hit the hardest," said Mike Gutierrez, a sports memorabilia expert for Heritage Auctions in Dallas.

To read the full article, click HERE.