A new survey reveals that investors are shunning the stock market in favour of the security of arts and antiques.
The results of a new survey published today reveal that savvy investors are shunning the stock market in favour of more secure ventures, with collectables being the investment option of choice.
According to the first ever arts and antiques survey carried out by RICS (the Royal Institute of Chartered Surveyors), while consumers are tightening their belts elsewhere this sector is thriving as those with income to spare look to more traditional investments for a safer guarantee on their returns.
What’s more, this influx of new interest is pushing prices up with 20% more surveyors reporting rises than falls in lot prices, and 50% more Chartered surveyors reporting rises in the £5,000+ price bracket, suggesting that while other sectors are flagging, the art and antique industry is being kept buoyant by those with money to burn.
Spokesman for RICS, Christopher Ewbank commented: "The arts and antiques market remains a viable investment option during this period of financial uncertainty. Many investors are using their disposable incomes to buy in at the high end with the hope that value will continue to stay firm while stocks and bonds ebb and flow."
He continued: "High salaries and large bonuses in many employment sectors have led to a high volume of new buyers entering the arts and antiques market, which has helped to push up the prices of lots."
Antique furniture has regained its popularity with 37% more surveyors reporting increases in the lot prices of items categorized in the £5,000+ band, suggesting that investors are choosing to move away from the contemporary designs recently favoured and instead looking to purchase pieces with more widespread appeal and longevity.
Modern art has also risen in popularity with urban artists Banksy and Damien Hirst fueling interest. As a consequence, 44% more surveyors reported lot price increases in this sector with pieces by these artists alone selling for over £10,000 each.
However, while the upper end of the arts and antiques markets is clearly displaying growth, results from the sub-£5,000 market paint a very different picture with only 4% of surveyors reporting rises rather than losses in the £1 - £1,000 item price bracket and only 7% more reporting rises in the £1,000 - £5,000 band.
This only goes to show that while those that can still afford to speculate are simply moving their money elsewhere, those with smaller budgets are holding back and reigning in their spending in an attempt to protect themselves against the financially trying times ahead.
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