Amateurs can succeed with antiques

ALTERNATIVE INVESTMENT: When it comes to buying and dealing in antiques, the world is divided into two distinct groups: the experts and the amateurs.

The latter group, by far the larger of the two, is automatically at a disadvantage in investment terms, since they will always be competing against buyers who have a greater knowledge of the industry. Happily, however, this does not mean that novices should avoid the market altogether. If they have a natural nose for value they still have a fair chance of achieving investment success, or at least of having some fun along the way.

Those familiar with the intricacies of the antiques world say the first thing a buyer should ask when considering an antique is whether or not they like the look of it.

"There is no point in buying something if you don't particularly like it and it's the same with antiques," says antique expert, Mr Val Dillon, adding that most antiques rise in value over time. Even dealers will rarely buy stock which doesn't appeal to them in an aesthetic sense.

"I wouldn't want a Francis Bacon in my house and his paintings make a fortune," he adds.

Regardless of how amateur an antiques investor is, Mr Dillon says a few simple guidelines should be followed in any purchase.

In wooden furniture, for example, a "patina" finish should be sought. This means that the surface of the wood will have mellowed through age, use and polish, and it will be evident only on authentic pieces.

"It looks like it has been lovingly polished by a housemaid over many years," says Mr Dillon, who shudders at "repolished" or badly-restored furniture.

As far as age goes, he says anything aged over 100 years will be antique according to most definitions. Personally he prefers not to go past 1820.

Investors who fancy silver, Mr Dillon advises, should always seek the marks that indicate its provenance, choosing only pieces that retain clearly definable stamps.

As far as the actual buying is concerned, the prospective investor is left with two main options: the antique dealer and the auction house. In broad terms, it is probably true that buyers will find value more often at auction, before a dealer's mark-up has kicked in.

In an auction house, €10,000 is not an inconsiderable sum, with options running from fine art to china to Victorian or Edwardian furniture. Those who prefer to buy one large piece could go for a table, for example, while investors preferring to spread the risk could choose a selection of glass.

Mr Stuart Cole, of James Adams Auction Rooms in Dublin, agrees with Mr Dillon, recommending that the only objects worth buying are those which hold some personal appeal.

"Part of the return is the usability of the object and the enjoyment you get from it for the period of time you have it."

By definition, says Mr Cole, antique furniture will deliver better value than modern furniture because of its liquidity.

In other words, when you suddenly feel like your coffee table no longer matches the walls in your living room, you can sell it on, rather than having no option but to chop it up for firewood.

Mr Cole says investors should always buy the best-quality item they can find that matches their expenditure.

"You just have to treat it like you would any other purchase," he says, advising that novice buyers should always seek professional advice. A free "conditional report" from the auction house will often be sufficient in this regard.