Accounting Firm Recommendation - Buy Antiques

Fellow appraiser Martha Peck sent me a good article from the Antiques Trade Gazette, which states major accounting firm Dilotte is recommending clients to purchase antiques. The rationale is that prices are currently low, with opportunities for future growth and value increases. The article states Deloitte's head economist reviewed data prepared by the Antique Collectors Club surveys and price data and determined antiques presented an opportunity for investors.

One important point made is that much antique furniture is better constructed and less expensive than quality new furniture. It is certainly good to see this type of analysis on antiques and value. Between the rise in cost of new furniture and the decline in prices of period antique furniture the large spread in value allows for greater opportunity and savings when purchasing antiques.

The article states Documenting the changes in the antique furniture market over the past five years, Mr Stewart wrote: “We think that the credit crisis could be supportive of antique furniture prices. First, a low return on cash provides investors with incentives to put money into less orthodox assets.

“Second, the credit crunch has highlighted the need for investors to put their money into a range of assets. Last year all the major assets – equities, houses, commodities – fell. Antiques are illiquid and they generally avoid the big price swings seen in financial markets.

“Third, for those who worry about the long-term effects of governments printing money, antique furniture offers a hedge against future inflation.”

But for Deloitte the best argument for buying old over new is “simply that antique furniture is better made and cheaper than new furniture”.

To read the full Antique Trade Gazette article, click HERE.