A lot of people (falsely) believe that the hoard of antiques or vintage items they have stashed in their basement, closet or attic is worth a fortune. They might especially feel that way after coming to the Antique Sage website and reading that I tout antiques as a superior investment vehicle.
But the sad truth is that only a fraction of the antiques out there are investment grade, and they probably aren't sitting in your attic. There are broad swaths of the antique market that are simply not - and never will be - investments. Even the very finest items in many vintage categories do not meet the strict requirements for investment-oriented pieces.
I examine this topic in greater detail in an article I wrote titled "Your Hopalong Cassidy Collectibles Are a Bad Investment".
In spite of this, many people see the words "investment" and "antiques" close to each other in a sentence and assume that the antiques piled in their musty attic must be worth a lot of money. Nothing could be further from the truth. Age, by itself, does not confer desirability on an object.
But in order to understand the attributes prized in today's antique market, it is important to grasp the trends that have shaped it.
The antiques industry has undergone a radical transformation over the last 20 years. From the end of World War II until the year 2000, antiques, collectibles and vintage items of all sorts appreciated in value more or less non-stop. The only exception to this rule was recessions, when the prices of many collecting categories would pause or pull-back slightly. But the overall trend was always up.
This was due to a couple factors.
Post-war America (and Western Europe too) was incredibly prosperous, with average wages rising both predictably and robustly. Increased discretionary spending power inevitably filtered into the antiques trade, lifting the prices for almost all collectibles.
Another contributing cause was that many members of the Greatest Generation, Silent Generation and Boomer Generation were quite materially acquisitive, although they all had different reasons for doing so. The Greatest Generation had lived through the Great Depression - often as children or young adults - and was loath to throw anything out, fearing it might be needed again someday. The Silent and Boomer Generations grew up in an era when physical goods were still somewhat scarce. Consequently, accumulating large amounts of stuff, including antiques and collectibles, was often considered a mark of wealth and social status for these generations.
Then the wheels came off the global economy. First there was the Dot Com crash of 2001, followed all too quickly by the disastrous 2008 Mortgage Meltdown and capped by a tepid, decade-long recovery. These economic catastrophes gutted the middle class, destroying their ability to casually collect antiques or vintage goods. Younger people, like Generation Xers and Millennials, struggled under crushing student loans and stagnant wages. Millennials, in particular, were forced to abandon material desires for cheaper and more attainable spiritual aspirations.
The internet also did its wickedly efficient work by allowing buyers and sellers to aggregate on huge sales platforms like eBay, Etsy and Ruby Lane. Unfortunately, many antiques were far more common than previously believed - a situation that online marketplaces fully revealed for better or for worse.
The effect of these trends on the antique market has been devastating. Collecting categories that had reliably appreciated for decade after decade suddenly collapsed in value, often with little warning. Haviland Porcelain, bisque dolls, Waterford crystal and baseball cards are just a sample of the antiques/collectibles sitting in peoples' attics that have cratered in price by up to 90% since the mid 2000s.
Even redoubtable antique furniture has been on the losing end of this trend. Old furniture is interesting because so many people (incorrectly) treat it as a proxy for the general antiques market, even though it is really its own category (filled with dozens of sub-categories of course). Everything from 18th century Georgian furniture to early 20th century Golden Oak furniture has plummeted in value over the past 15 years. Only those pieces with clean lines, like Art Deco and Mid-Century Modern styles, have avoided the worst of the damage.
Now I don't want to be doom and gloom all the time. After all, my website is about investing in antiques. And there are plenty of great antiques out there that possess marvelous investment potential. In fact, this is probably one of the best times in history to shop for high end antiques.
But I feel it is imperative that you stick to items that are small and precious.
I favor compact antiques made from gold, silver, gemstones and exotic woods. Things like vintage fine jewelry, antique silver, ancient coins, classic mechanical watches and old fountain pens are at the top of my wish list.
Sure, I believe some items not made with precious materials can make the grade too. Vintage Japanese prints are a favorite of mine. I also just featured a wonderful Mid-Century Modern enameled panel that is almost preternaturally alluring.
In any case, you should stick to the Antique Sage's 5 rules of investment grade antiques for the best results. An item must be portable, durable, scarce and of high quality. In addition, it should reflect the zeitgeist or dominant style of the era in which it was made.
I suppose what I'm trying to say is that you shouldn't be surprised when you don't find any investment grade antiques when cleaning out your great aunt Emma's estate. The good stuff is pretty rare. And while it is natural for everyone to believe that their stuff is special, in all likelihood, the random accumulation of old junk that your relatives have stashed in their attics and basements almost certainly isn't.
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