Although we may dream of spotting a masterpiece at an art auction, buying at a low price and then selling for enormous profit, in reality unless you have the appropriate knowledge and expertise you are unlikely to out do the professional art dealers. Even work by new, unknown artists may not become more valuable over time.

That said, some advisors do point to art as a good long-term investment. But, unless you are an expert in your own right you probably need to get advice from an art dealer and remember their expertise may vary a great deal.

Buying art at an auction house is one option but do first check on the level of the buyers premium you will have to pay, this could be as high as 20% at some auction houses.

Generally investment in art is not recommended for the small investor unless you buy art that you like and will enjoy displaying in your home and treat any increase in value as a bonus. Specialization in a narrow field will allow you to develop your expertise and create an art collection that would be attractive to another collector.

Investing in Antiques and Collectables

Like art, antiques and other collectables can offer investment opportunities but without expertise finding the pieces that will produce a good return is difficult. Tastes change and what is collectable now may be less so in future. Antiques and collectables must be looked on as a long-term investment, quick profits are not likely to be made.

The condition of pieces is crucial to the future value so, unless you know that something is rare, do look for quality.

Some antiques and collectables investment advisors stress the importance of using a reputable dealer, but of course purchasing pieces via a dealer rather than at auction does mean paying higher prices.

Generally antiques and collectables are not recommended for the small investor unless you build a collection that you can enjoy and treat any increase in value as a bonus. Specialization in a narrow field will allow you to develop your expertise and create a collection that would be attractive to another collector.

Investing in Stamps

Many experts have argued that philately (stamp collecting) should be looked on as a hobby rather than a serious investment. However, rare stamps can still offer an investment opportunity.

See also investing in classic cars and investing in fine wine.

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