Antiques
Were you also a fan of the Antique’s Roadshow?
I’ve got to admit, one of my fondest memories of childhood is watching the BBC show Antiques Roadshow. It was broadcast on TV on a Sunday evening at a time when we’d done all our chores and attended church earlier in the day. School would be looming the next morning, but there was something very cosy about settling down for an hour with the rest of my family to watch a show about a topic I knew very little about.
Antiques feel like a special asset class because they are a piece of history. And more often than not, that means many antiques come with stories of their previous owners which can be pretty captivating.
But putting aside our nostalgia and instead donning our firmly capitalistic hat, are they an asset class worth investing in?
In this guide I'll cover:
- What is an antique?
- How does the antique market work?
- How can an everyday investor get started in the antiques market?
- Tools, resources and marketplaces
What is an antique?
An antique is generally defined as an object that is at least 100 years old. Anything between 50 to 100 years old is typically referred to as “vintage”.
An antique can be any item over 100 years old that is in a sellable condition. This can vary depending on the item of course - and there are a number of factors to consider before you can sell an antique. More on that later.
Antiques can include all kinds of things like:
- Art work
- Jewellery
- Decorative arts like ceramics
- Furniture
- Collectibles like toys, stamps, coins
- Books and maps
- Architectural elements from buildings like door frames, stained glass windows
- Fashion and textiles including dresses, antique quilts and textile samples
How does the antiques market work?
In 2023, the global art and antiques market had sales totaling approximately $65 billion, marking a decline from the previous year, although the volume of transactions increased by about 4%. Online sales within the global art and antiques market reached around $11.8 billion in 2023, indicating a growth of roughly 7% from the previous year.
The US, China and the UK make up the vast majority of the global antiques market with New York, Beijing and London as global centers for antique traders.
There are 3 main ways antiques are typically bought and sold: through auctions, antique dealers or online marketplaces.
Here’s a quick overview of some of the core differences between each of the ways antique traders can buy or sell their antiques.
Auctions are where items are sold to the highest bidder. Sellers typically pay the auction house a commission fee for this which can be anywhere between 10-20% which is pretty significant and one of the main downsides of auction selling. On the upside though, auctions tend to attract a high calibre client base which means selling through an auction could mean you have a better chance of selling your antique to a high quality buyer.Some of the world’s leading auction houses include:
- 🇺🇸 Sotheby's, New York, USA: Specializes in fine art, jewelry, collectibles, and luxury items. Known for prestigious auctions with a global clientele.
- 🇬🇧 Christie's, London, UK: Focuses on art, antiques, and luxury items. Famous for record-breaking art sales and a wide range of collectibles.
- 🇬🇧 Bonhams, London, UK: Offers auctions for motor cars, jewelry, fine art, and antiques. One of the oldest auction houses with a global presence.
- 🇺🇸 Phillips, New York, USA: Concentrates on contemporary art and culture, with a focus on emerging artists and modern art.
- 🇺🇸 Heritage Auctions, Dallas, USA: Known for collectibles, coins, comics, and sports memorabilia, along with fine art and luxury items.
- 🇨🇳 Beijing Poly International Auction Company, Beijing, China: Specializes in modern and contemporary art, antiques, and cultural artifacts, leading in the Asian market.
- 🇨🇳 China Guardian, Beijing, China: Focuses on Chinese art and antiquities, playing a significant role in the Asian art market.
Antique dealers purchase directly from sellers and they’re typically looking for a fast sale which can make trading easier. Because of the nature of dealing though, antiques dealers are often looking to buy for lower than market price so that they can resell later at a profit.
Examples of antique dealers include Gordon Watson in London, Shiprock in Santa Fe, New Mexico or David Aaron in Mayfair. But as well as more established players, there are plenty of smaller professional antiques dealers scattered across the world where potential sellers can sell their goods. Several major cities host antiques markets and these are often places where more hobbyist antique buyers and sellers can meet, too.
And aside from auction houses and dealers of course, is the online marketplace. Thanks to companies like Etsy and Ebay it is easier than ever to buy and sell antiques. Listing an item on an online marketplace instantly gives sellers access to a potential audience of hundreds of millions of users but this is both a strength and a weakness; the sheer scale of online marketplaces means that any listing faces stiff competition from other sellers.
There’s also a risk that if you list without professional guidance or a proper valuation you could potentially end up selling your item for far less than it’s worth.
One of the most famous examples of this is the story of the Allsopp’s Arctic Ale.
A photo of Allsop’s Arctic Ale which sold foer over $500,000
A photo of Allsop’s Arctic Ale which sold foer over $500,000
Allsop’s Arctic Ale was an ale originally brewed for Sir Edward Belcher’s 1852 Arctic Expedition. When it was first sold on Ebay, the original seller listed the item with a misspelled brand name and only three pictures, which led to it being overlooked.
A savvy buyer spotted it and purchased the bottle for just $304.
Later, after being correctly identified and marketed, the same bottle sold for an astonishing $503,300, resulting in a massive profit of $502,996 for the buyer.
How can an everyday investor get started in the antiques market?
Anyone can get started in the antiques market.
Some of the easiest ways to get started could be to get some experience in each of the 3 approaches we’ve just outlined.
You could pay a visit to an auction to get a feel for it, contact a local antiques dealer to find out what items they have for sale right now or even potentially start buying some items yourself either through auctions or in online marketplaces.
But unlike investing in other areas like stocks or commodities, investing in antiques is fairly difficult in comparison because of the sheer volume of different antiques available. Without an understanding of different types of antiques, it’s very difficult to judge whether a trade is sensible.
If you were interested in the antiques market, a good starting point might be to familiarise yourself with the various different antique categories that are available and then perhaps specialise in a few to familiarise yourself with those niches. Attempting to become an expert in a category like furniture alone might take decades and so antiques is often a space where folks will have a passion for their subject matter, built up over several years.
For me, the Antiques Roadshow was probably as specialist as I’d ever get. And on that note, to finish, here’s one of the most valuable items ever featured on the show:
Tools, resources and marketplaces
Here’s a selection of some tools, resources and marketplaces to help you get started in the antiques world:
Online
- eBay - doesn’t really need much of a description really since we all know eBay! But needless to say it’s a well-established platform with a massive customer base, ideal for auctions and direct sales of antiques. It offers a user-friendly interface and significant exposure, though it requires strategic pricing due to competition.
- Etsy - known for handmade and vintage items, Etsy is a popular choice for selling unique antiques. It provides a niche audience interested in vintage and antique goods.
- Ruby Lane - specializes in antiques, vintage collectibles, and fine art. It is a trusted platform for serious collectors and dealers.
- 1stdibs - a high-end marketplace focusing on luxury antiques, vintage furniture, and art. It caters to a more affluent clientele.
- Bonanza - offers a user-friendly interface with no listing fees, making it a cost-effective option for selling unique antiques.
- Facebook Marketplace and Instagram: Social media platforms are increasingly used for selling antiques, allowing dealers to reach a broad audience and engage with potential buyers directly.
Other resources
- Price Guides and Handbooks: Books like Miller’s Antiques Handbook and Price Guide and Kovels’ Collectibles Price Guide offer valuable pricing information and market trends.
- Television Programs: Shows like Antiques Roadshow (my favorite!) and Flog It! can offer educational insights into the world of antiques, helping dealers understand market dynamics and valuation techniques.Google Trends: Useful for understanding what types of antiques are currently in demand, helping dealers make informed purchasing and selling decisions.
Hope this guide has got you looking at antiques in a new way!
Jason
DISCLAIMER: None of this is financial advice. Finbrain is strictly for educational purposes.