The return on investment in antiques can reach 15-30% per annum, depending on the category of the item. RBC found out from participants in the antiques market which of the old objects of art and everyday life bring the most money
Tim Yarzhombek for RBC
Investing in art and antiques is an increasingly sought-after financial strategy among wealthy investors, according to a 2016 study by Deloitte Luxembourg & ArtTactic Art & Finance. At least 73% of global wealth managers surveyed by Deloitte experts said that last year the majority of their wealthy clients wanted to add or added such assets to their portfolios. For comparison, in 2014 the share of such respondents was only 58%. The authors of the study attribute the increased interest in works of art and antiques primarily to the desire of wealthy clients to diversify their investments and save them from inflation amid the instability of financial markets.
The activity of investing in art and antiques usually increases during a worsening economic situation, confirms Vladimir Bogdanov, editor-in-chief of the specialized portal Artinvest. So, in 2008, when the global financial crisis broke out, the total turnover of legal transactions in the Russian antiques market grew to $500-700 million, and after the weakening of the national currency in 2014, it already exceeded $2 billion, the expert says. Thus, antiques, like art in general, can act as a classic protective asset for the savings of large investors. However, even in calm times, when markets are growing, the return on investment in antiques can reach 15-30% per annum, depending on the category of goods. This indicator is comparable with the yield of the largest stock indices or even exceeds them. For example, the S&P500 indicator grew by 17.4% in 2016, while the MICEX index grew by 24.2%. RBC figured out which antiques are the most profitable, where to find a competent art consultant and how to start investing in this market.
According to the federal law "On the cultural heritage of the peoples of the Russian Federation", antiques are everything that has cultural, historical, scientific and artistic value and was created more than 50 years ago. The list of objects that fall under this definition is endless: it includes works of art of all forms and techniques, as well as household items, jewelry and securities. Antiques can be considered banknotes, coins, bills and bonds, medals, dishes, watches, furniture and much more. However, the market adds its own criteria for determining the value of an object, in particular, uniqueness, time of creation, provenance (ownership history) and a dozen more factors, lists Anna Shvets, CEO of TAtchers’ Art Management.
Photo: Vyacheslav Prokofiev / TASS
“Unfortunately, it is very difficult to find provenance for Russian art and antiques in general. This was influenced by two world wars and the difficult time of the 1920s and 1930s, when art objects were moved without any records, ”complains Grigory Baltser, member of the board of the International Confederation of Antiques and Art Dealers (ICAAD). In 2014, the State Institute of Art Studies, commissioned by the MKAAD, conducted a survey of Russian investors in antiques and collectors, which showed that participants in the antiques market consider the lack of confidence in assessing the value of an item to be the main obstacle to its development, the expert said.
This assessment can be carried out independently or ordered from professional appraisers, explains Pavel Kudryavtsev, Director of VTB24's VIP Clients Department. In the case of antique items of mass demand, which include badges, awards, stamps and coins, you can evaluate items using special sales catalogs that auction houses put up. However, the error of such an assessment can reach 30%, the banker warns. The fact is that during the auctions themselves, an extra charge is always added to the initial cost of the lot - this is due to the specifics and emotional intensity of such auctions, says Vladimir Bogdanov. In addition, auction houses take a commission from each transaction, which can be 15-30% of the value of the lot sold.
If an investor purchases antiques not at an auction, but from a private collector, he runs the risk of overpaying even more. This is due to the fact that the initial value of the lot, as at the auction in the auction house, in this case remains unknown. In this regard, Pavel Kudryavtsev warns that without contacting specialized experts who are able to competently conduct an assessment, an investor is unlikely to be able to conclude a profitable deal. The same recommendation is true for those who themselves plan to sell an item that, presumably, has an antique value.
Photo: Alexander Demyanchuk / Reuters
The greatest danger for an investor in antiques is the abundance of fakes on the antiques market, says Dmitry Breitenbikher, head of the private banking directorate, senior vice president of VTB Bank. To avoid fakes, the investor will have to check the authenticity of the objects of interest to him ahead of time. “It is necessary to obtain an expert opinion from specialists, consultants to verify the authenticity of work and existing certificates, as well as an assessment of investment attractiveness,” the banker lists.
According to Pavel Kudryavtsev, paintings, rare coins and orders are most often counterfeited on the Russian market. Moreover, not all art consultants can give a 100% guarantee of their authenticity even after examination, which often leads to litigation. To minimize the damage, Ilya Goryanov, the founder of the Znak auction house, advises to contact only those specialists who have received a license from the Ministry of Culture of the Russian Federation to conduct an examination of cultural heritage sites. The list of these experts can be viewed on the website of the Ministry of Culture itself. Also, market experts recommend contacting appraisers from the list of the International Confederation of Antiquaries and Art Dealers, available on the organization's website.
How much can you earn
Despite all the risks associated with investing in antiques, participants in this market are attracted by high returns, which in some cases can reach 30% per annum. It is supported by consistently high demand with a fairly low supply. “The old masters will no longer write anything, which makes their work more attractive from an investment point of view,” explains Anna Shvets. Investments in antiques are, by definition, long-term: over the years, the value of these assets only increases. According to the observations of Vladimir Bogdanov, the period of storage of antiquities in an investor's portfolio averages three to five years. Ilya Goryanov, however, believes that it is better to put up a lot for sale no earlier than ten years after the purchase. “Coins, orders, porcelain items increase in price by 15-30% per year. Pictures of famous artists can rise in price by two or three times over the same time. Books and furniture are not rising in price so quickly, but the demand for them is stable,” says Pavel Kudryavtsev. The yield of rare art and historical photographs averages 10% per year, adds Anna Shvets. But rare weapons, according to the research company Art Market Research, annually rise in price by 10-25%
The greatest potential for price growth is for those antiques that have not yet become a mass phenomenon in this market. An example of this is old paper money, which consistently shows a yield of 30% per annum, says Ilya Goryanov. But paintings, coins and awards are gradually ceasing to be attractive to investors, with the exception of those that exist in strictly limited quantities, the expert notes.
Photo: Natalia Mikhailova / TASS
How to become an investor
RBC's interlocutors agree that, despite the wide range of prices for antiques (several thousand to several million rubles), the most profitable investments in these assets require large investments from the collector. This makes the purchase of antique art and household items the prerogative of wealthy clients. According to a study by the State Institute of Art Studies, there are very few players on the antiques market who are ready to make large investments (over 1 million rubles), about 4.3% of the total. At the same time, 14% of investors are ready to spend from 100 thousand to 1 million rubles on antiques, 30.9% - from 10 thousand to 100 thousand rubles, and 18.7% - up to 10 thousand rubles. “There are no really big players among Russians. Only three of the world's top 200 collectors are Russians. At the same time, serious collectors go to London or New York for large booty,” explains Anna Shvets.
The elitism of investments in antiques is also confirmed by the fact that art banking services (a banking service to support investment transactions in the art market) are offered only in bank branches for wealthy clients. Of the top 15 private banking market participants in Russia, according to Frank Research Group, RBC reported the availability of such a service in Sberbank, VTB24, UniCredit Bank, Uralsib, Alfa-Bank, Gazprombank and Bank Saint Petersburg. The art banking service includes assessment and expertise, assistance in compiling a collection, concluding a deal, including at the international level, as well as participation in auctions, transportation, insurance and storage of antiques in protected depositories with the necessary temperature conditions.
The main advantage of art banking is that it simplifies the process of organizing a transaction for a collector, notes Vladimir Bogdanov. When buying antiques on your own, the investor will have to handle the paperwork himself, which will require studying the details of the relevant legislation. “It will be necessary, for example, to take into account that Russian laws prohibit the export from the country of various objects of art and household items that are 100 years old or older,” explains Bogdanov. Ilya Goryanov recalls that the legislation also prohibits the sale of orders and awards dating back to the Soviet period after 1917, as well as the sale of rare firearms, if they are still in working order.
Experts interviewed by RBC also note that, as in the case of investments on stock exchanges, an investor in antiques will have to keep abreast of the market all the time, tracking changes in the situation on it. Trends and opportunities in the art market can be tracked by the behavior of the New York “family” of the Mei-Moses All Art index, and to understand which specific assets to invest in, you need to study catalogs and follow the progress of auctions. The first steps will help to make specialized courses - for example, a series of 20 lectures at the Institute of Art Business and Antiques. Deeper immersion in the market involves training for a year, and classes are held at the same institute in the evening or remotely. You can get acquainted with the calendar of upcoming sales and auctions in Russia, for example, on the specialized websites Artinvetment.ru and the Gelos auction house. Among foreign auctions, Sotheby's, Christie's and MacDougall's are considered the largest - their sites are also required for constant monitoring, experts agree.
How to learn to understand antiques, where to bring them from and how to determine their value - designer Maria Cherkasova shares her experience in working with vintage items and antiques.
Maria Cherkasova interior designer
Where to buy vintage and antiques
Our family has always been interested in antiques. Maybe because there were a lot of old things in the house. As a child, I was especially fascinated by the fact that utility table knives are branded with a double-headed royal eagle - things are more than a hundred years old, and they continue to actively use it. Items that were bought even before the revolution passed from generation to generation, and this was the case in many families. I also remember how we drank tea from the Gardner service at home. This is one of the oldest porcelain factories, it is located in Verbilki.
Now for antiques I go to Europe, for example, to France, where antiques are sold on brocant. Brockant is a special flea market, special hangars stuffed with all sorts of old things. How do they get there? France is a fairly prosperous country, there were relatively few wars, many regions are well preserved. For example, small chateaus or estates remained completely untouched. And when some heirs come into their own, they can turn this place into a hotel, for example, and antiques are sold at auctions or taken to similar flea markets.
In the city of Bayonne in France, you should look for furniture from the 1950s and 60s, in Normandy, for example, Rouen, there are many brokers with silver, porcelain, and old furniture. Brussels is a city of expensive galleries with quality antiques in excellent condition. Vintage shops and brokers are worth looking for on the Rue de Sablon and the streets adjacent to it. In Moscow, there is also a high-quality gallery complex, where art, porcelain, carpets and objects of arts and crafts are presented - "Artifact" on Prechistenka 30/2.
Who determines the value of antiques
The value of such things is determined, first of all, by the market. As the saying goes, "It's worth what you can sell it for." The value can be artistic, cultural and historical. If Napoleon was sitting on this chair, then this is of interest, even if the chair is unsightly. The origin of a thing, its history, confirmation of its possession is called "provenance". If a thing of mass production, it will cost less, if it is from a limited series or an exclusive release, then more expensive - there is no direct relationship between the age of the thing and its value.
An antique fireplace - a find of the customer - and a bureau. They have vintage frames from a flea market in France.
How to learn to understand antiques
You need to know history and be familiar with experts: museum experts and gallery staff can help, for example, Tamara Vehova from Vehova Gallery knows everything about the artists of the first wave of emigration. You can study the market yourself, there are many antiques schools. The most complete idea can be obtained at the Faculty of History of Moscow State University, at the Department of History of Art. You can also take the course "Examination of Antiques" at the Gelos Auction House or a special course for interior designers at the "Details" school. You can also get the necessary information in books, for example: "Russian porcelain, private factories" V.A. Popova, "Furniture Styles" Kees, "The Great Illustrated Encyclopedia of Antiquities" - there, in particular, a lot of advice on how to distinguish a fake from the original.
Collectors are the deepest in the matter, and if you are just an amateur, then it is better to adhere to the rule of modern art - buy what you like.
What is the beauty of vintage and antiques
Oddly enough, some antique silver spoons and knives are cheaper than new, freshly made ones. In Russia, there are few ancient valuables left, because all the rare crystal was beaten in the revolution, expensive chairs were burned during the blockade. In France, the market is larger, respectively, the prices are lower. Another good source is St. Petersburg (pay attention to the flea market at Udelnaya station, the Tertso galleries on Italianskaya street, Pestel street and Mokhovaya street), there is a very rich selection of things - a lot is brought from Sweden. Another reason buying antiques - size: handbags were more compact, and old furniture is smaller and more elegant than modern ones. And of course, the uniqueness, due to a much smaller scale of production.
Antique breakfast table, XIX century, the main advantage is its compact size.
How not to overdo it with antiques in the interior
You need to look at the size of the space: in small modern apartments it is easy to get an apartment-museum. To prevent this from happening, interspersing vintage items should be as delicate as possible. Now clients prefer the mid-century direction: designers often use furniture from the 50s-60s, drag it and repaint it. The charm of the eras, modern or art deco, is almost impossible to recreate, and if you like a certain historical style, it is better to turn to antiques.
Some customers still have a prejudice about the old and alien thing - as if it has "the wrong energy." But I think that if a thing has survived so many wars, revolutions, it, on the contrary, has a lot of vitality.
What confirms the authenticity of antiques
Mandatory examination is carried out for paintings, and there is a brand on porcelain and silver. Moreover, these stamps often change: they can be used to determine the origin of the service with an accuracy of ten to fifteen years. To distinguish a fake from the original, you need a certain “observation”: you need to compare your own objects with scientifically processed museum collections, follow publications in your specialty, carefully study what technological processes, old techniques, drawings, ornaments and processing methods existed at different times. A sign of a fake can be, for example, a brand that does not correspond to the method of decoration and the ornament used. It is necessary to know the dates of the most famous masters of the art form of interest, as well as the material used and the technical capabilities of that time.
How can you make money on antiques? Most people have antiques at home that many do not need and they easily part with them, some of them are simply thrown away, although they have a high price.
Where to get old things?
The piano and many other rarities are of high value. Just before you try to sell them, you need to make sure that it is really of great importance. Many instruments that existed in the 18th century are now in very poor condition, so they are of great value. Few people think of the fact that the old junk is so expensive.
Everyone is trying to sell a beautiful, perfect piano that has no value, but what is old and dilapidated very often ends up in the trash. But if you sell such a piano, you can earn several thousand dollars or more, the piano after restoration will be perfect, its cost will increase significantly, but restoration can also take several years.
Many houses have children's toys, dolls or Christmas tree decorations, as well as garlands, etc. since the last century. People usually do not use them, they just lie somewhere in the corner and are not needed by anyone, but they also have their own value.
Very often people find paintings, mirrors, figurines at home and try to replace some detail, for example, a mirror frame, but do not suspect, for example, that it is the frame or some other element that carries the value of this item.
In every house, if you look closely, you can find a thing that is of no importance to the owners, but selling them you can get a good income.
There are a lot of buyers, they travel all over the world in search of old and unique. Buyers especially like to travel around the villages where young families live, they usually get the house from their parents, which means that it has something that is of interest to them. Young people often do not suspect that this or that thing is expensive and can give it to someone so simply, or inexpensively.
And then this thing can be sold for good money. The income of people who deal in antiques is high, they try in every possible way to get a valuable find, and then bringing it into good condition, they earn their living.
After grandparents, there are many things that carry value, these can be cabinets, scarves, coins, dishes, various tools. Do not throw everything away at once, it’s better to find out first what is unique among them, you don’t want to throw out such things, but if necessary, you can sell and get a good income. In addition, after relatives, at least something should remain that will remind of them.
Of course, paintings or orders will not appear just like that from nowhere at home. This is possible when relatives were not the last people in history, or belonged to a family that had money. If people were prosperous, then in any case, something remained in the house after them. Very often people leave for their future generation some things that are passed from daughter to mother and so on, such things can carry something in themselves. But not everyone can sell what was dear to the whole family - this is the memory of everyone.
To start a career in antiques you need:
one). Take courses, they are paid, but after passing them, you will begin to distinguish fakes from valuables. Get acquainted with the types of antiques, see it all with your own eyes, learn a lot of useful and interesting things.
2). After training, get a job in galleries or antique shops, at this stage the earnings will be small, but experience and reputation will appear. After the reputation is positive and people will be interested in you as a master, you can start your own business and become a private appraiser.
3). If you have an income, then always save some money for the future. There will be no stability at first, and money may always be required, for example, to expand the business, or to live if the business develops poorly.
four). After you have bought valuables, open your online store, in which you describe in detail all the purchased antiques, take unique high-quality photographs, indicate the price, answer everyone's questions in detail.
Conclusion
How you can make money on antiques - antiques are not only earnings, but also a hobby, antiques, in addition to value, carry their own history, and if you search, you can find a lot of information that captures and gives a person emotions. That's all, see you soon!
The luxury of antiquity tempts each of us. As well as the opportunity to profit from the objects of our admiration. But how to make money on antiques? Where to begin? Is it possible to do this on the Internet, without interrupting the main work? Today we will look into this issue in detail.
Education
First of all, you should learn to understand the subject that you plan to earn. There are no teachers without a pedagogical education or a doctor without a medical degree. In the same way, you cannot work with antiques without having the necessary knowledge. Take special courses in antiques. Keep in mind that courses come in different directions: general - for those who just want to learn something, and in-depth - for people who purposefully came to learn antiques and plan to use this knowledge in the future. There are also different areas of study, for example, "landscape design", "methods for checking the authenticity of an object", etc. The cost of such courses is 1-2 thousand US dollars, depending on the duration and intensity of the classes.
You can get the education necessary to work with antiques in another way. A degree in art or museum work will also give you enough knowledge to understand the business you plan to go into.
Auctions
Now at various auctions you can buy absolutely everything: from a fashionable fur coat to Marilyn Monroe's favorite powder box. Antiques are one of the classic items of such auctions. Today, it is not necessary to be present at the ongoing auction, because many issues are resolved by phone, often anonymously. In addition, more and more auctions are held online.
There are many “open” sites on the network, where any user can list their lot and independently set the minimum cost. Register on one of them (or several at once) and exhibit your products. With this scheme, your profit will be the total cost of the lot minus various commissions.
Mediation
Another option for making money on antiques via the Internet is mediation. Here work is possible in two directions.
The first option is to become a "buffer zone" for antiques. For example, there is a buyer from Kazakhstan and a seller from Japan. For some reason, the seller, under no pretext, wants to send his goods to Kazakhstan. In this case, the buyer turns to an intermediary who places an order for himself and then forwards it to the future owner.
The second option is to search for the right products. The customer contacts you as an intermediary. He knows what specific item he wants and knows how much he is willing to pay for it. But he does not know where to find this item. Your task is to find the desired item and negotiate with its owner on the sale.
The intermediary receives an average of 15% of the transaction value.
Consulting
Many wealthy people want to buy something antique and exquisite. But often they do not know where to turn, which auction or a particular seller can be trusted, how to take care of the acquired value in the future. Then people turn to antique consultants who are knowledgeable in all these matters. Such consultants usually go hand in hand with the customer through all stages of the transaction. They help in choosing an appraiser, and in finding a mediator (or they themselves act as mediators), and in negotiations. It is not uncommon for such consultants to become permanent with novice collectors.
Advisory activities can also be carried out online, without interruption from the main work, for example, using video communication or correspondence.
Fees for private consultations vary, as they directly depend on your personal agreements with the client.
Own online store
This option is for you if you already have experience and a certain weight in the antique business. An online store is a business that requires great strength and good connections. Especially when it comes to such goods as antiques. Even at the planning stage of the store, you need to know:
- who will be your suppliers;
- whether you will work with regular suppliers at all or become an intermediary yourself;
- what specific sector of the antique market you want to occupy;
- who is your target audience (which segment of the population you are targeting: gender, age, interests);
- How will you attract an audience to your store.
It is worth creating a business plan.
If, in addition to the site, you plan to have a real outlet, try to get under the state support program for small and medium-sized businesses. To do this, you need to register with the employment center, and then create and protect your business plan.
The site itself, its appearance also require considerable costs. It is better to entrust its creation to professionals. After all, an online store should be easy to use for you and easy to use for the buyer. At the same time, it should correspond to your concept as much as possible, “sell” itself at first sight.
Video
The following video discusses many issues directly related to making money on antiques, for example, is it possible to import and export antiques from the country, what can be purchased at a flea market, and much more:
Business idea: how to make money on antiques?
Where we do business: office, rented premises (possibly in a shopping center)
Main costs: rent, training, investment in buying antiques
Required equipment: evaluation equipment, literature
Consumables: no
Initial capital: from 50,000 rubles. up to 80,000 rubles
Payback period: from 3 to 6 months
Possible profit: from 30,000 rubles. up to 80,000 rubles
Antique business in our time is one of the most common and profitable form of income. By investing their material resources in antiquity, people make a profit of 25% per annum. Such people need the opinion of an appraiser, which you can become and receive excellent money for your work - about $ 150 per hour.
In order to become an appraiser, you do not need to be an art historian, it is enough to take courses teaching antiques. But, it is worth saying: in order to feel all the fascination of the antique world, you will first have to shell out an immodest amount. The cost of the initial course will be about $1100, but the advanced course will cost you $1900. After completing such a fundamental course, which lasts a year, you will be able to engage in antique business.
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Many people think that after completing this course they will be able to quickly earn money, but you need to understand: becoming a professional is the result of hard work over several years. By the way, appraisers have no problems finding work. You will be gladly taken to an antique shop or some art gallery, while the money spent on training will return to you after a few months of work, since the salary of an appraiser is $ 1,000 - $ 1,500 per month.
But you don't have to work for someone, you can very well become a "free artist" and work for yourself, creating a name for yourself. At the same time, with hard work, a small initial income will increase markedly in the future. After all, as they say: "The first half of your life you work for your name, the second - your name works for you."
As for the earnings of a professional appraiser, it ranges from $250 to $1,000. An antiquary selling antiques also receives additional profit - 5-10% of the amount of sales, and if the buyer needs an assessment of the goods, then the provision of such a service will bring $ 100 or even $ 150 to the antique dealer's wallet in an hour.
Note: never undertake to evaluate the furniture of the period in which you are engaged. A self-respecting professional painting appraiser, for example, of the 16th and 17th centuries will not evaluate furniture of the same time.
The search for antiques
In general, it is currently very difficult to find an interesting and worthwhile thing on an amateur basis. But we have a large dealer network, as well as the antique dealer profession, whose duties include:
1. Search for things in your specialization
2. Distribution of it among antiquarians.
This certainly makes it easier to find unique antiques.
Unexpected places of antique finds
During the search for antiques, which took place at the end of the 90s, they found an Austrian aquarium of the Art Nouveau era, the owners of which were residents of one of the Khrushchevs in Novye Cheryomushki. Having no opportunity to restore such things, people simply wanted to get rid of them in a short time, not at all interested in the high uniqueness of the items. Of course, the aquarium was in an ugly state, so we had to work hard to restore it.
Unique antiques - necessarily expensive or not?
Of course not. Once in St. Petersburg they bought a mirror of the Art Nouveau era. But its black plastic frame seemed poor to us, so we decided to replace it, but it turned out that the frame is the most expensive thing in the mirror, as it is the first of the celluloid things of the 20th century.
Magnificent chandeliers with beautiful ornaments and stained-glass windows, characteristic of the beginning of the century, seemed to be spoiled by black cartridges sticking out of them from above and below. But the light bulbs on the chandelier were fashionable in the 20th century!
Antique fashion in our time
Only a decade has passed, and the antiques market has changed markedly. There are two categories of antiques:
1. Expensive antiques (jewelry, paintings by famous artists)
2. Category "flea market" (old curiosities, artifacts.)
As in the West, there is a shift towards Art Nouveau. Remain fashionable and things in the art deco style. A large shift of interest is felt towards contemporary art.
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