How to make money from selling antiques

It is possible to make serious cash by investing in art or jewellery, or even precious metals such as gold itself: just be prepared to put in some serious research.

Adrian Pett, owner of Darnley Fine Art, says programmes like the BBC’s Antiques Roadshow have made it look easy. But for savers, precious things may not necessarily generate returns – or even increase in value over time.

He says: “It is true that some people have bought items for very little and had huge returns, such as the stories told on Antiques Roadshow. Or those who specialise in a certain artist or period and have bought a painting for £10,000 and resold it for millions.”

For most though, it’s really the same as any investment: making any money will require a serious time investment. “The more cash and research put in, the better the return,” says Adrian.

Art, antiques or both?

Investing in art or antiques on a long-term basis means finding a dealer. Adrian says that, as a dealer, he is able to put sellers in touch with buyers.

He explains: “We have had cases where a client has bought a picture and then the following year another person is after the same thing, so the first client is asked if they are willing to sell at a profit to them.”

Finding a reputable art dealer will involve some research in itself but Adrian says that is part of your investment.

“Unlike auctioneers, dealers are not on a timescale to sell to you and want to build up a rapport and share their knowledge with you.”

James Constantinou, a presenter on Channel 4’s Posh Pawn and founder of Prestige Pawnbrokers, warns that it is easy to overvalue an item if you like it.

He says: “If you are looking to invest in items rather than simply buy antiques that you want to enjoy personally, it is important that you remain focused on the objective value of an item – both with regards to financial worth and market appeal.”

Investing on an esoteric level means not following the crowd. Adrian says: “Always buy the best by an artist or subject and not the average by a known name. Never buy what every gallery is selling that moment – find something out of fashion, as it will come back into favour.”

Adrian says modern British and contemporary art is popular. “But remember, contemporary can be a bit like buying a new car as it will halve in value once out of the gallery. Middle Eastern, Chinese and Indian are currently fetching vast sums.”

And most importantly, enjoy it. Adrian adds: “Unlike shares, it’s a fantastic way to get out of your house and go to art galleries and museums. It always helps with anything to at least have an interest, then you’ll go the extra mile to learn about it.”

Avoiding fakes

James says there is no 100 per cent foolproof way to avoid fakes but when buying through a dealer, make sure you have all the paperwork and any associated provenance details.

He adds: “Look out for the use of modern materials or production methods, hallmarks that may validate items or signs of authentication.”

You should also expect some wear and tear as most antiques will have been produced more than 100 years ago. James adds: “It’s important to look for any damage, repairs or personalisation, such as engravings, likely to impact the value of a piece. If possible, it is good to know how an item has been cared for, cleaned, repaired and stored. Look for signs of damage by light, heat or smoke and take time to examine items properly before making an offer.”

Part of your investment means getting the right price. James says: “Remember that a seller probably wants to sell an item more than you want to buy it – so always negotiate and have the confidence to remain calm and in control while you to-and-fro over the cost.”

Adrian Lowcock, head of personal investing at investment platform Willis Owen, says that there is no doubt that buying and owning artwork can make you significant sums of money.

But he adds that the chances can be slim.

“Because of the prices they are being bought and sold for, they are only accessible to the very rich and are frequently bought as status symbols or for appreciation of their artistic qualities – not necessarily as investments outright,” he notes.

“When considering either art or antiques, I would suggest you do so first and foremost to get enjoyment out of them. In a worst-case scenario, they may only be worth what current fashions and trends value them at – which can be fickle.”

Case study: ‘Pub bells were worth £200’

Mary Curtis, 72, Bishop’s Stortford

“My family used to own a pub.When we sold it on, the new owners didn’t want to keep a lot of the fixtures and fittings, so my cousins and I decided to keep the ones we liked and sell the rest.

“This was in 1993. We made a bit of money, but they were only odd things. I kept some brass bells. When a friend was visiting, she noticed them and told me she thought they might be worth something. There was an antiques dealer I knew through friends and I got him to value them. They were worth £200 each.

“Since then I’ve actually started collecting jewellery. I bought one ring for £50 and sold it for £150. I’m not sure whether to sell the other ones, or keep them for my grandchildren.”

Top tips

Buy to lose

Adrian says investing in anything, be it stock and shares, art or antiques should never cost you more than you can afford.

Diversify

Jewellery and precious metals are your investment of choice consider putting your money in a fund which benefits from rising gold prices.

Adrian says: “It might be better to get exposure to a gold fund such as Blackrock Gold & General, the fund’s manager Evy Hambro has good stock-picking skills and the fund offers investors exposure to gold miners along with other commodities.”

Have fun

“It is important to see these investments are not core to your long-term wealth planning and rather as something to enjoy with the hope they might be worth more in the future,” says Adrian.