Antiques and Collectibles

Antiques Collectors: Warning if You Use as Investments

​My wife and I like to watch Antiques Roadshow. Most of them are previous episodes from several years ago. However, today during my lunch, I decided to flip through the channels and an episode of the show was on and it was showing highlights from previous episodes (various years). The interesting aspect of this particular show is after displaying the price from the original show, it was updating for 2017 prices. Being as I am writing this article in 2017, this has to be a new compilation.

I Have Some Bad News For You

I watched several segments with updated prices for 2017. Most of the items either stayed the same or declined from their original airing of the show.

The reasons are unclear. However, it could be that people are jumping back into the stock market due to its meteoric rise.

​The biggest problem is any asset that is valued on the whims of the market's participants are ripe for huge volatility in prices.For instance, furniture used to command serious money. It's not so great today.

Paintings still do fairly well. However, there were several paintings valued in the $20,000 - $50,000 (or more) during the airing of the original show. Many of them didn't increase much in 2017. In fact, some fell rather hard.

​What About the Stock Market?

​You may argue that the prices of stocks are based on the whims of investors. In the short-run, there is truth to this. However, CEOs and board of directors do everything they can to increase the value of the companies they are running. This is not to say there aren't problems with this group of people. But, overall, they serve to maximize shareholder value.

Solid companies purchase raw goods at a low price process those goods into finished inventory. They then sell the inventory in the open market. Theoretically, this create value for those companies.

You also have to consider that the value of the assets needed to run the organization. When you add that factor in, the value of an organization is even stronger.

There are so many other factors in valuing stocks. If the company does not manage debt well or gets into trouble from a PR persective, this is likely to hit the company's stock hard. But, it's a short-term ding. Companies that continue to operate inefficiently will be taken over or dissolved. Only the strong survive on Wall Street, all things being equal.

Should You Buy Antiques?

You may have your own opinions about the value of antiques. You may have even studied the field and believe much of what I have written here is bunk. But, the numbers don't lie on the television show.

You should buy antiques if you love the piece or you are going to use it in your home. If you are going to approach antiques and collectibles as a means to invest your money,  you need to do more checking into what I wrote here. When you do, I invite you back to ​comment (below) on your findings (no spam please!) What I do ask is that you cite your sources, so I can check out what you came up with.

Good Luck!

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