Will Your Antiques Drop in Value?

There is a lot of pressure on investors and collectors to retain the value of their antique pieces. Unlike other investments, such as rare coins or classic cars, antiques can retain their value for extended periods of time. This makes them ideal investment items. As with all markets, the antiques market can fluctuate. The price of certain antiques will rise with popularity. This cycle is due, in part, to both internal and external forces of the antique market. 

Antiques Can Keep Their Value

Antique furniture is always popular due to its sturdy construction and elegant appeal. The lift-boy seats which used to be placed in hotels before the First-World-War have become very popular antique sale items. Collectors will pay a great deal for these chairs. Other items have decreased in value, such as some forms of pottery. This decline can mean that they are no longer as popular.

On the other hand, other antiques retain their worth, and even increase in value. For example, jewelry pieces are usually still worth the market price of the silver or gold. This means that you can get a good sale price, even if they are not being bought to be used as jewelry. In a similar way, pieces of art that are original, risque or rare remain very popular, and will often sell well at an auction.

Antiques Can Lose Their Market Value

It is also true that antiques can lose their value in much the same way as rare coins or pieces of art. For example, the influx of reproduction Derby-ware into British markets meant that some people were put off buying the real thing. Only pottery experts understood the difference between the reproductions and the real thing. That caused uncertainty in the markets and investors were unsure about investing money into something that would not sell well. Generally speaking, a market can become saturated with antiques and that will cause a decline in the value of the antique. In the case of the pottery, there were many pots on the market and that brought down the price of the pottery overall.

Antiques May Become Less Desirable

Another important factor that determines the price of an antique are personal tastes and style. Some pieces which were very popular 10 years ago, are now less popular. Although you can still find collectors who are anxious to own more of their favorite pieces, this is a volatile investment because the market for the piece will diminish.

Also, the cost of antiques can be viewed as somewhat extravagant during periods of austerity. This can also influence the market and repress the price of items. As more people attempt to cut back on spending, the demand of the antique is reduced and that will drive down the price. Selling an antique in difficult financial conditions can have a serious effect on an antique's value.

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