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Arts and antiques provide safe bet for investors

Arts and antiques continue to provide a safe haven for investors, with prices continuing to rise in most segments of the market. However, the drop in the number of surveyors reporting price rises in the second quarter suggests that the rebound in other investment markets may be having an effect on sentiment says the latest RICS Arts and Antiques Survey.

Rising prices in all lots fell back to 7 percent from 19 percent in Q1, but remains in positive territory. Contemporary art again saw the largest price falls and across all price brackets: 24 percent more surveyors reported a fall than a rise in prices of contemporary art with 33 percent more surveyors saying prices are dropping in the £5,000 to £50,000 tier.

In contrast to the contemporary arts market, the oil and watercolour sub-sector is still fairing well, recording a positive net balance overall of 5 percent, driven by positive results in the middle and top end of the market.

Meanwhile silverware, militaria and jewellery were the strongest sectors. Prices rose across the board in each of these categories with 39 percent more surveyors reporting a rise than a fall in silver, 32 percent more reporting a rise than a fall in militaria and 26 percent in jewellery.

The outlook for Q3 remains positive with demand expected to continue to grow. 41 percent more Chartered Surveyors see demand rising rather than falling up from 39 percent in Q1. At the same time the number of surveyors expecting supply to increase has dropped back, although it is still positive. 13 percent more surveyors say supply will rise rather than fall over the next three months, down from 31 percent in April. This could see further price rises in key sectors as demand outstrips supply.

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