Island Life Magazine Ltd February/March 2009 | Page 62

life ANTIQUES By Philip Hoare Money in Quality Not in the Banksy We're here at last in 2009! I hope you all had a wonderful Christmas and an excellent party on New Years Eve! As the nebulous clouds of intoxication drift away its time for us all to sober up to a year which brings with it much uncertainty as the world recession continues to bite. Every facet of business culture will be affected, since globalisation inexorably links the worlds economies. I have personally experienced two major recessions during my 43 years in the world of antiques, 62 and on both occasions the markets were affected with substantial decline in value for pedestrian and middle-quality pieces and an increase in value for rare and fine quality pieces. I do hope I am wrong, but this time I suspect that the downturn will be longer and more painful. So, as before, there will be a significant downward adjustment in prices for general art and antiques, in particular furniture. However, the reality is, that since the stock and property markets have suffered so badly of late, there will be a considerable increase in demand for collectable's and Objects d'Art with an emphasis on quality. I believe there will be many new investors looking for alternative ways of, not only preserving their capital but (perhaps not in the short term - certainly in the long term) realising substantial growth on their investment. Rare and fine objects will increase significantly in value as they become more scarce and sought after. Let me give you an example: The quality of workmanship of the Russian silversmiths and jewellers pre-revolution was truly exceptional. and this has been reflected by the continual increase in value of fine Russian works throughout 2008. A fine, diminutive Teapoy, decorated in various shades of blue enamel was bought in 1998 for £5,900 it sold in November 2008 for £220, 000! Interestingly, there has been a substantial downturn in the market for contemporary avant garde art, which has been much discussed recently both in the press and on the television. Perhaps the great roller coaster of Brit Art is finally grinding to a halt (I certainly know what I would rather have if I had to choose between a Banksy or a piece of Faberge). It is noteworthy that the leading auction houses have reported a significant increase in demand for old master paintings which have been in the doldrums for several years. I believe that established markets based on quality will survive the downturn far better than the contemporary market! We know the old property adage Location Location Location, well when investing in an antique one should always bear in mind Quality Quality Quality! Philip Hoare 07773 877 242 Email: [email protected] Banksy painting "Peter the Great" Faberge Egg The Island's new funky radio station www.wightFM.com