7/25/2009

A Quick Market Review on Fine and Decorative Arts

The Times Online of London has a good article on buying and selling of fine and decorative arts. They spoke with expert in several fields and ask the basic question of buy, sell or hold within the context of the existing market and economic conditions. The Times asked fine art experts, furniture experts, the group of ceramics/glass/silver, jewelery/fashion and and coins/stamps. Quality, perhaps is the most important component of the evaluation process. A good article with anecdotal discussions from experts on the state of various fine and decorative art market segments.

The following are the verdicts from experts who were interviewed.
  • Fine Art - Cautious buy
  • Furniture - Buy Georgian; hold contemporary
  • Ceramics/Glass/Silver - Buy 18th-century and contemporary glass and 18th-century silver from rarer Assay Offices, such as Dublin. Otherwise hold.
  • Jewelery/Fashion - Buy 1920s, 1930s, 1940s vintage; otherwise hold.
  • Coins/Stamps - Cautious buy.
The article states The financial crisis may tempt some readers to sell their fine art and collectibles to free up cash. Others may be considering buying such tangible assets as an investment that will provide aesthetic pleasure even when the markets are down. With both groups in mind, Times Money has asked experts how key categories have performed in the downturn, and where they expect prices to go next.

All agree that quality remains the single most important factor, with the finest pieces in pristine condition most likely to gain and hold value.

David Middleton, of Towry Law, the wealth manager, cautions that art and antiques are notoriously volatile and should only be a small part of a diversified investment portfolio. He also warns that the prices you get when you sell are well below shop prices and insurance values.

To read the full Times Online article, click HERE.

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