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Investing in Antiques
"Have nothing in your house that you do
not know to be useful or believe to be beautiful" -wrote
William Morris. The idea is just as attractive now as it
was in the 1880s. Many of us derive huge pleasure from the
search for beautiful antiques with which to furnish our homes
and, for many, collecting objects with fascinating history
becomes a passion. Antiques are also becoming an increasingly
important alternative investment which can be handed down
to future generations. So how should you go about investing
in antiques and what should you consider to ensure you are
maximizing the investment opportunity?
Set a budget - No matter where
your interest lies in investments, you need to have a budget
in mind in choosing your antiques. There are quality antiques
to suit all budgets. The skill is in knowing what to buy
in your price range. It is a good idea to bear in mind that
a higher quality object from a lower price bracket will usually
be a better investment than a damage or poor quality version
of a higher priced object.
How do you know what to buy?- No
matter what your budget is for investing in antiques; you
need to be very selective in choosing each individual antique.
A collector should develop a collection on personal taste.
If you buy something that you like then chances are it will
appeal to others and you will get a genuine enjoyment from
owning the object. Buying antiques solely for investment
purposes can be high risk. Fashions and styles can change
over years. Something which was in high demand last year,
could be tomorrow's white elephant.
"DO YOUR RESEARCH!"
- That means don't just buy an antique based on what the
seller has told you about the antique. Make sure it is an
original. Buying an antique is based on emotion and knowledge.
As any successful investor would do, educate yourself. Read
books and articles on the subject. This alone will give you
the knowledge to to spot quality pieces.
Get to know the dealers - Something
that really helps is getting to know the dealers. Many of
them are very enthusiastic and knowledgeable about their
subjects and can advise not only on purchasing a particular
item, but also on the care and repair of objects.
Beware of fakes and forgeries - Reputable
dealers will also be able to help you avoid costly mistakes.
Forgery of antiques is now big business and sometimes even
the experts are deceived. Reputable dealers will normally
be happy to provide further information on the validity of
the piece and point out any restoration work which may affect
its value.
Diversify your investments -
Just like the stock market, one should not put all their
eggs in one basket. Spread your risk around. You might want
to spend half on furniture and the rest o smaller items.
If you are new to antiques, start with small items that are
of interest to you. So often, too many people think that
14 piece table and chairs at the estate sale is a great deal
and they must have it. It winds up sitting in storage for
the next 20 years and when they attempt to sell it, they
find out it was not an original.
Keep good records - Let's
not forget, antiques for many can be a great tax advantage.
It is important to seeking tax advice when purchasing and
disposing of collectible items.
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