Hard assets, such as art, antiques & collectibles, as a form of investment alternative?
Well, perhaps these could be the following reasons.
Assets of such, often retain their value as inflation rises, and they can also provide balance to other asset classes that suffer more from rising costs.
Collectibles include everything from high-priced antiques, gems, works of art and many others.
1) What makes collectibles valuable?
Some collectibles are valuable because they are creations born of talent, skill and workmanship.
For instance, Chinese Porcelains. Each item is inherently unique, and its value may be specific to that individual item. These types of collectibles tend to hold their value over time, generally keeping pace with inflation. Many also have the potential to appreciate in value. The value of these types of collectibles depends on many factors as well. The age of the item, rarity, craftmanship and its current popularity among collectors may all be factors in determining its value.
2) Why invest in Antiques & Collectibles?
Some but not all, increases in value, though they tend to appreciate slowly over a number of years. Another attributing factor, “The new high will always be higher”, which is why we oftenly see these items setting new records high with auction houses around the world. Collectibles, however, can act as a hedge against inflation too. This is why many investors are sometimes tempted to add them to their portfolios.
As an investment, There are a number of unique upsides which you cannot replicate with anything else.
Collectibles are not influenced by inflation or interest rate headwinds.
Low-correlation to the stock market:
Collectible markets rarely move in tandem with the economy.
It is all about supply and demand.
And over time, A good piece of work, become scarce when that particular item is no longer trading in an open market.
You hold on to the assets; you don’t have to worry about anything like an investment bank run, or being scrutinized into a virtual world with no physical ability to control and manage. And If you’re one lucky collector with ability to capitalize on arbitrage situations, you’re against all odds.
For more information, please contact iTreasures Capital via the following channels:
Email: [email protected]
Enquiry: +65 6988-6602 (9am – 5.30pm, Monday – Friday)