Difficult Markets for Antiques and Family Heirlooms

Dan Sewell of the Associated Press recently ran an article (actually a few weeks ago) on the antique and collectible markets. The report really has nothing new as we all are aware of the lower prices, especially on mid and lower level property, yet many consumers are rather shocked at the reality of what their collections are actually worth in today's market. Like a few others, this article is a good piece when documenting and describing current market trends and conditions for collectibles and lower level antiques and family heirlooms. It has comments from not only antique dealers, collectible dealers, pawnshops and auctioneers. He does state that those items priced under $10,000.0 has been hit the hardest.

An interesting point Sewell makes is about eBay, how in the fourth quarter of 2008 the number of buyers and seller grew by 4%, yet sales volume fell by 12%. Sewell also notes that opportunities are all around for those with money to spend.

As an appraiser I have been getting many calls from individuals who are not actually looking to have items appraised, but are rather looking to sell. Unfortunately, what I have to tell them is typically not what they expected to hear or want to hear. On the AW Blog I post a fair amount on the upper markets because they attract the most attention in the news, such as Sotheby's and Christie's auction sales, The Winter Antiques show and some of the more famous art fairs such as Art Basel Palm Beach. As professional appraisers we need to be aware of what is happening at all market levels and categories and sub categories within those levels. Sewell's article is good piece documenting the lower level markets of consumer collectibles.

Sewell states 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.

Sewell continues At an auction business in downtown Cincinnati that has been around since around the Civil War, owner J. Louis Karp warns clients they face "a terrible market."

He recently told customers to expect $300 to $400 for a sterling silver flatware set. "They said, 'Oh my God! It retailed for $1,500!"' Karp recounted.

A Persian rug Karp would have sold for up to $5,000 just a few years ago will now go for $800 to $1,500.

In Middletown, some 35 miles north of Cincinnati, Richie's Pawn Central has been in business since the 1950s. Each day now brings more first-time visitors, said Allen McIntosh, shop manager in the mill city.

The office is lined with vintage Gibson and Fender guitars, some handed down through generations. But dozens of times each day, he also turns down offerings he doesn't think have as much resale value as the customers hoped.

To read the article, click HERE.