Investing in Antiques
Whether you are an antique collector, buyer, or seller, everything sounds interesting, right? Investing in an antique collection can be costly but is it worthy? This article will give you some ideas if investing in antiques is a good idea.
- Identify your target collection or collectibles
Some antique pieces are indeed expensive, but some are also cheap. So if you’re planning to invest in an antique collection, do a research first before you invest. Dig all the details you want to know to identify what theme/pieces are you passionate about to have? Is it about jewelry, vintage cars, historical paintings, rarest finds, vintage clothes, furniture, old coins, and so on? Well, it’s up to you. You should have a good taste in choosing an item.
If you’re a seller:
You shouldn’t buy and collect items from a money-making standpoint. It’s not a good idea if you’re planning to resell the items that you do not know about. Say for example the paintings, and you’re not an art lover, well, future buyers or bidders will not buy your item if you didn’t know what kind of painting masterpiece it is, the materials used, the meaning and value of the painting, the original painter, and so on. Even if your item is the rarest find or evidence from the past, it will be a critical thing to do if you are don’t know how to properly demonstrate or present it to your buyer.
If you’re a buyer:
Collecting items that you’re passionate about is one of your biggest achievements in life. Even single or multiple items you bought from an antique shop could mean a lot to you. The joy and happiness it could give you is a combination of a never-ending excitement and overwhelming satisfaction. But be a practical buyer. Be sure of the quality and original antique collections before adding it to your cart. Some people could deceive you by creating recent replicas.
- Weigh your plans according to your budget
There are antique collectibles that are way more expensive because of it’s the historical background, rarest find, value, materials used, known originators, and so on. But before you buy a unique piece, make sure that you have to weigh your budget first. You should not buy items because you’re firstly in love with it but later on, you couldn’t find the true value of it to you. You can still find items that are in a line with your interest and budget because several shops are offering antique items at a lower price because it’s either shop owners are unaware of the real history and value of some antique pieces they are displaying in-store. Well, that’s a good move and opportunity for you to get it while it’s still on sale or discounted price and a bonus is to resell them at a later date for gain.
- Identify the Upsides and Downsides of the Collectibles and the Market
Although, you can’t predict the demand for an antique item and it’s also not at all times in demand. However, once a buyer or bidder is willing to bid for it at a higher price just to get the item, it’s a jackpot opportunity. So somehow, it’s a good opportunity to invest and resell it at a later time for gain. Patience and a long wait is also a winning point. It has a process to win it.
- Limited and rare pieces are indeed a good investment:
Historic items are truly remarkable and highly valuable. However, if you have a historic items, you need to be extra careful in taking care of it to preserve it and sell or bid it at a higher price to some luxurious companies or high ranking individuals. The more an antique item is rare and limited, the more it is pricey.
- Mark-up Price:
If you want to buy it for a retail price through a dealer, it’s too pricey. But if you also want to sell it to a dealer, you will lose some cash profits as you need to sell it for a wholesale price.
- Maintenance and Security:
Some antique items just need a proper storage room to display and scheduled cleaning to protect it from dust and other potential damages from external factors. However, vintage jewelry needs to be stored in a well-secured place protected with high tech security equipment as possible to not be easily stolen from you. This means you need to invest a lot more for its maintenance and security. The same thing with collecting vintage cars, you also need a bigger space or a showroom to display your valuable car units. You also need to check it regularly if the car has gas leaks, drained radiator, broken wires, and so on. This is really costly to maintain its condition and also the showroom is also expensive to build with. Wines collection is also critical to invest with. If you’re a wine lover and collector or buyer, you have to consider the space it needs to occupy in your area. Also, the proper and required temperature to preserve those.
Accidents happen. You can’t easily control it. If you have an antique shop of clothes, it needs full care and close monitoring of the customers who wish to fit in the vintage clothes. You can’t control if the customer wore the item and accidentally torn the pieces. You can’t easily sell it for a higher price as what you originally planned to, but rather, it will be often sold for half of the potential value or even way less. The same with other collectibles, if it has damaged or not in pristine condition, you can’t offer it at its high valued price.
- Deceit and Fraud.
Some people still sell replicas but insisting that it’s original. Even the experts can easily be fooled with an extreme duplication or forgery of the antique items. So be careful with that. Otherwise, if you become a victim of deceit and fraud, you will lose a big investment. Some sellers are selling worthless items.
- Low returns:
Some collectibles appreciate at a slower rate than stocks, bonds, and other investments.
- No tax-free option
If you want to invest in antique items, weigh the upsides and possible downsides of that. Know the value of the item that will appreciate over time. Do not be money-centered if you want to collect items. You have to consider things that you are truly passionate about. Enjoyment and satisfaction of the things you’re passionate about is a big contributory factor when investing. You will become wealthier if you’re practically wise in investing and passionate about what you want, where, and how to invest it.