The art of making wise investments
Last updated 13:37, Thursday, 24 April 2008
More investors are putting their money into the art and antiques market due to fears over continued volatility in the financial sector.
The first Royal Institution of Chartered Surveyors (RICS) Art and Antiques survey found that 20 per cent more surveyors reported an increase rather than a fall in prices, showing the market for antiques and art remains buoyant.
The most expensive items performed the best, with 50 per cent more surveyors reporting a rise than a fall on lots worth more than £5,000. In the picture sector, 44 per cent more surveyors reported a rise rather than a fall in the prices of lots worth more than £5,000. The popularity of urban pieces by artists such as Banksy has helped to boost the top end of the market.
However, 30 per cent more surveyors reported a decrease in the value of pictures worth less than £1,000.
The rise in the cost of precious metals has helped push up the prices of silver and gold, with silver the best performing sub-sector of the antiques market.
Demand for antique furniture fell over the last few years due to the popularity of contemporary minimalist decor, but the survey revealed that antiques are back in fashion with 37 per cent more respondents reporting a rise rather than a fall in prices of items worth more than £5,000.
The fall in prices at the lower end of the market suggests that amateur collectors are spending less while those with big bonuses can afford to buy the highest priced items, the report said.
The worst performing sub-sector is the clocks market. The RICS report suggested that investors are looking for items with a wide public appeal and clocks attract only a niche group of collectors.
RICS spokesman Christopher Ewbank said: “Many investors are using their disposable incomes to buy in at the high end with the hope that value will continue to stay firm while stocks and bonds ebb and flow.
“High salaries and large bonuses in many employment sectors have led to a high volume of new buyers entering the arts and antiques market, which has helped push up the prices of lots.”
The survey reported that confidence in the antiques market remained strong with 32 per cent more surveyors expecting a rise in prices than a fall over the next three months.
