Welcome back to the Antiques Central blog page.

Have you ever wondered how dealers and investors like me make money buying and selling antiques, vintage and collectibles?

To find out my tried and trusted secret method, read to the end of this blog!

My name’s Mark and I’ve been successfully buying and selling antiques, vintage and collectibles for quite a few years now, so I thought it was about time I shared my five golden rules I adhere to when I’m buying a piece for investment or to resell. So, no time wasting, no waffle, let’s get straight to it …

1.     First up, let's talk quality, whether it be furniture, artwork, ceramics or glass, it makes no difference. Golden rule number one - Always invest in the best quality you can afford!

When I evaluate an item I am considering investing in, I always pay close attention to a variety of factors, including -

a. The artistry and design

b. The manufacturing skills

c. The craftsmanship and the type of materials used.

For example, it might seem like a no brainer but it’s a good sign of quality in antique furniture if expensive hardwoods have been used rather than cheap softwoods, the carpentry joints are dovetailed and the original finish remains in good repair. However, for every niche in the antiques trade there are a multitude of signposts directing you to quality; from ceramics, metalware and furniture to glassware, jewellery and works of art, so always take a big step back and do your best to take in the overall quality of the item.

If it looks cheap and feels cheap to the touch then the chances are it is cheap!

But be warned, a visual inspection is never the whole story and does not take into account the history or cultural importance of the object and we’ll talk about research later. So, the variations in determining quality are many, but your first impressions followed up by a careful inspection of the item are nevertheless priceless, cost you nothing and are always the first indication of quality, which invariably translates into value. And always remember ‘rule 101’ in buying for investment or for reselling, high-quality pieces stand a much better chance of surviving the test of time and therefore increasing in price.

 

2.     Next, my golden rule number two - Scarcity almost always plays a significant role in an items current value and potential increase in future value.

Items that are rare or even unique tend to fetch higher prices in the market, as there will always be higher demand for these items than there is supply. But be aware that if a scarce or rare item comes up for auction, particularly in an auction house that has internet bidding, then the competition between buyers to purchase the item will inevitably push up the price! So set your maximum bid you are prepared to go up to and stick with it, don’t get tempted to make that extra bid which takes you from a potential profit to a loss situation on the day. This will then mean a much longer wait time to cash in on any future profit if you are chasing a loss brought on by paying too much for the item in the first place, but more about that later!

In certain situations, I nearly always pull out of bidding at an auction if I realise I am up against a collector rather than fellow dealers, who all want to retain a profit margin on the purchase price, as collectors will invariably pay whatever it takes to win the item for their collection and therefore make it unviable as an investment purchase for a short, medium or even long term profit. Having said that, a scarce or rare collectible is always top of my acquisitions list, so I still keep my eyes open for limited editions, discontinued items or pieces with significant historical significance. 

 

3.     Golden rule number three goes without saying - Price is always a  crucial consideration when making a purchase for resale or investment.

While a sentimental valuation is important and by that I mean using your heart rather than your head, it's always essential to actually assess in advance the current trending market value of an item. You can then make an informed estimate of potential future value over time. Do you want to turn over the item quickly or will it be displayed or stored away as an investment for the future? Only you know the answer to that question but it must form part of your decision-making process. Taking advice from a more experienced or knowledgeable dealer would always be my guidance, particularly if you are expecting to pay out a lot of your hard-earned money.  Once again, in advance of the purchase, we come back to research, including checking recent online and auction house sale prices, consulting experts in advance of making your purchase to determine a fair current market value. And don’t forget, if you buy at auction you must take into account paying the lot fee and buyers’ premium in addition to the hammer price if you win the bid. Depending on the auction house you use, this can currently vary from 10% at a local pop-up auction to in excess of 25% at established auction houses with large overheads.

Of course, if you make a private purchase from a member of the public or at an antiques shop or market then there will be no additional fees to pay, so ‘what you pay is what you get’. Making an ethical point, if I am buying from a member of the public with no antiques knowledge, I always pay the current market price after subtracting the profit I need to make, in my case a minimum of 30% and an additional 30% overheads are taken into account. Getting a bad reputation as a dealer who rips off the ill-informed will not do your career or business any good, so don’t get caught in the headlights of making a quick profit when you shake hands on the deal with a member of the public. Of course, if you are buying from a dealer, then in my opinion, all’s fair in ‘love, war and business’, so haggle away and get the best deal you possible can, it’s all part of the fun and the antiques game as long as you respect the dealer and don’t make silly low ball offers!

 

4.     In my book, golden rule number four is a no-brainer - Authenticity is always non-negotiable.

So, make sure you always verify the authenticity of an item before making your purchase. Ask for, or at the very least, look for provenance documentation, maker's marks, or consider expert opinions to confirm the item’s legitimacy and that it is a genuine antique or vintage peice. If you are at a reputable auction house then speak to the auctioneer and ask them for any background information they have on the item. You can always ask where the item came from and also its history or provenance, but I find nowadays that with UK data protection laws in place to protect the privacy of clients, the auction house can’t now provide you with detailed information other than their assessment of the item’s originality; in other words, it’s a genuine example and not a fake or a reproduction.

On the subject of fakes and reproductions, there is an important difference between the two and one that you need to be clear on if you are to make an estimate on value before purchasing.

a. A fake is an item produced to deliberately deceive a buyer into thinking it is a genuine and original item from the period it was historically manufactured. In other words, a fake is designed to illegally con a buyer into believing they have purchased an authentic item. In the UK there has been relatively recent court cases where albeit talented craftsmen producing fakes have been imprisoned. Ironically, some authenticated fakes, particularly in the art world, are gaining in value if the forger has gained notoriety or some fame. However, buyer beware and if you are buying from an auction house then check whether you are buying ‘sold as seen, or if you have the right to return the item if you subsequently discover it is a fake.

b. On the other hand, reproductions are legitimate pieces which can be marked up accordingly with a maker’s mark. In my opinion, reproductions only become problematic if they are sold as original, authentic antiques to unsuspecting buyers. At the risk of repeating myself, buyer beware when making any purchase!

 

5.     Lastly and my most important fifth golden rule before making a purchase for investment or profit is - Research, research, research!

Research should form the foundation of every acquisition you make, whether the purchase is made privately or at an auction house, shop or market. So, always take the time to educate yourself about the item you are considering investing in, including the past and present market trends they exhibit before parting with your cash. With Google, it only takes a few seconds to carry out your research but always double check supposed facts and if possible, source a second opinion with a trusted colleague or expert, you can always return the favour at a later date!

The beauty of buying at an auction is, you will always have time during the viewing to do your research and set the upper limit of your bid. Most online auction houses will publish photos and descriptions of the lots in the sale well in advance of the auction, thus giving you ample time to delve into the history and provenance of an item. But one thing is for sure, every other dealer will be doing their own pre-auction research, so be prepared to battle it out if you really want the item!

If you are buying at a market, walk away from the stall and compare sold online listings on comparable items. Don’t stand in front of the dealer’s table googling on your phone, it’s bad etiquette and you may well be told to politely go away! So discretion is always the better part of valour in that situation!

The same can be said of buying in a shop, always glean as much information as you can from the dealer selling the item and in addition give yourself time and space to privately carry out your own research, so avoiding making an expensive impulse buy that will bite you in the pocket and wipe out any future profit.  The bottom line is, in my opinion anyway, always get yourself informed about current demand and prices to make informed and sensible investment decisions.

So, there you go. By considering my five golden rules before you spend your hard earned cash, including quality, rarity, price, authenticity and carrying out your ­­­­­­research, they will help you safely steer your way through the world of antiques, vintage and collectibles, hopefully investing with a little more confidence than perhaps you would have had previously.

That’s it for now and wherever you are in the world, happy investing and I’ll see you next time!