Another Recommendation to Invest in Antiques

On August 25th I posted about accounting firm Dilotte and how the head economist recommended investments in antiques,(click HERE to view). Part of the recommendation was based upon the English Antique Furniture Index published by the Antique Collectors Club.

CNBC recently ran a similar piece, and mentioned the Antique Collectors Club index as a reference point as well. The point of both stories is how quality antiques can hold value and also that investors with money are looking for safe investments, with art and antiques being one of the often mentioned alternatives.

I love the premise of both articles, although I just dont believe there are enough investors who feel comfortable in following the strategy in order to shore up prices and universally effect the market, but that is my opinion. The article mentions several records which have been set during 2009 for antiques. This may very well be applicable to the top of the market, but the middle market continues to suffer. Given the antique market is currently depressed, there is definitely room for an upside by investing in quaility antiques.

The article states

“If you invest in quality, the theory is it’s exactly like a good investment, it’s going to provide a return,” says Walker. “We were certainly able to do that and it came at a very opportune time.”

Legendary financier Red McCombs agrees that diversifying into antiques is a wise idea. McCombs, who is the founder of the Red McCombs Automotive Group, co-founder of Clear Channel Communications, and the former owner of the San Antonio Spurs, Denver Nuggets and Minnesota Vikings, is also an avid antiques collector.

“I collect just about anything that is old and has a story to it, or, if it doesn’t have a story, if I find it particularly attractive," says McCombs

“I don’t buy to resell, but on the other hand, I have never bought anything that I thought wouldn’t increase in value on a relative basis,” McCombs says. “The market for really fine, old things may stay level for a while, but I don’t believe that losses (on a relative basis) are going to take place.”

Of the recent stock market decline, McCombs says, “I’m not saying that the same thing couldn’t happen to antiques, but you also have the joy of looking at them."

Rau, the dealer, says that fall 2008 not withstanding, the great majority of the people he sees do just that — buy things they love with the understanding that, more than likely, they will be a good long-term investment.

To read the CNBC article, click HERE.