Low interest rates push up antique prices

Friday, 09 October 2009 12:10

Prices in the arts and antiques market are being increased as interest rates have fallen.

In the third quarter of 2009, the Royal Institution of Chartered Surveyors (Rics) reports 22 per cent of its members saw arts and antique prices increase.

Just eight per cent saw prices drop.

Price rises were highest for jewellery and silverware - as these areas are "perceived 'safehaven' status of such items during times of financial and economic uncertainty".

Contemporary arts, ceramics and oil and water colours saw lowest price gains - as collectors and investors turned to more stable and traditional markets that tend to hold their value.

Low interest rates meaning cash is not earning much interest in the savings accounts is one reason for the upswing in antique prices.

Jeremy Lamond, at Halls Auctioneers, said: "The credit crunch has had a positive effect on niche markets with buyers putting money into quality goods in all areas as an alternative to the banks.

"There has been an increase in buyer registrations and consignments are up too, as the housing market begins to move."

Half of the Rics members polled thought more items will now come to market over the next three months and 53 per cent expect demand to increase.

Rics spokesperson Chris Ewbank said: "The arts and antiques market has held up well under the duress of the recession with many investors looking for a safety net for their savings.

"Cheap money, and downwards price adjustments in the last five years or so, is helping to drive up prices in nearly every part of the market."

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