How to invest in Collectables - Art and Antique? 

Furniture, bone china dinnerware/tea -sets, artwork, and antiques were popular collectables from the last centuries, but the millennials have alternative views towards such investments.  

Jewellery, gemstones, and fashionable accessories are still very popular as they can fetch a huge value through resale. Still, some categories, like heavy wooden furniture, are not getting the millennial buyers as they want to invest only in eco-friendly or usable pieces 

and not on the things that require extra expense on storage and maintenance. At the same time, some rare furniture from the 17th century, mostly kept in museums, may get a higher bid for their historical value. 

Even military collectables like the war-era swords sold for over $2000 may not get many bids from younger buyers. 

Nowadays, one can get rare antique furniture in an affordable range due to such factors, but some investments in antiques and unique assets have been overgrown, and cars, art, and wine have been a winner in the last decade.

Investment-grade wine gained over 147 per cent, and classic cars grew 289 per cent in 10 years. Art gained 50 per cent in a decade and 25 per cent in one year. 

This category contains paintings, sculptures, clothes/ items belonging to royals / historical people - traditional and contemporary pieces. 

Some classical art pieces are exceptional but can be sold for a fraction of the cost compared to modern contemporary paintings. Sometimes, it becomes difficult to estimate the value of the artwork. 

However, the trade of second-hand books continues to gain in certain sectors. Some old books are like treasure chests, which are easy to store and can provide huge amounts of money in exchange. In October 2018, a self-portrait of feminist text was sold for £8.3 million -Jenny Saville’s ‘Propped’, creating a record value for a living artist. 

One of the key advantages of such investments is that HMRC can accept these against inheritance tax.  

High net worth individuals can drive a high surge in the value of such collectables as they can outperform certain traditional assets, like some of the rare brands of whiskey, which can get unprecedented interest from buyers from the US and Asia (China).  

The art collection is made by various independent factors and trends, where some rich millennial buyers may invest in art for individual preference. 

The value trajectory of the category is different from other investment modes. It is relatively illiquid, with higher transaction costs, where one can quickly monetize the collection without liquidation. 

It can be exchanged with another piece and seen as flipping work in the secondary markets.

Art pieces can be given to museums or public places, which can improve their value. Leveraging artworks enables investors to capitalize on present-day value, allowing for longer holding. Some firms offer options for temporarily releasing equity from the art while retaining ownership.