With miserly bank deposit rates, soaring property prices and jittery stock markets, Marilyn Monroe memorabilia may represent the investment trend of the future. Many investors want a tangible home for their money and what could be more tangible than art, antiques and collectibles?
Although the dress that Marilyn wore to President John F. Kennedy's 1962 birthday bash recently sold at auction for almost $1.3 million, (€1.24 million) its re-sale value and hence investment potential may be limited. Still, it highlights the prices that can be commanded for rare items.
Irish paintings, antique furniture, old silverware and books, period jewellery and other collectibles have all been attracting record interest of late and, in some cases, record prices.
At last month's auction of paintings, furniture and objets d'art from the home of the late Mr Justice James Murnaghan and his wife, many bids far exceeded expectations. An Irish Regency mahogany writing table, expected to go for £3,500 (€4,500) to £4,500, made £15,000 while a Georgian clock with a pre-sale estimate of £3,000 to £5,000 made £11,500, according to Fonsie Mealy of Mealy's auctioneers in Castlecomer, Co Kilkenny, joint agents for the sale with Christie's of London.
"These are tremendous returns compared to what you're getting in the bank," says Mr Mealy.
Growing awareness of the investment potential of art and antiques has brought a new type of collector to the auction rooms, experts say. "This last five years, investment quality and potential has become a major issue for buyers at auctions," says James O'Halloran, managing director of James Adam & Sons, auctioneers.
"Traditionally, most people would have balked at talking about something as crass as investment when talking about art. If it made money, great, but that was not the reason for buying it. Over the last couple of years, that has changed dramatically because of the levels of value creeping in."
Just about anything Irish is attracting interest, both from domestic buyers and international collectors, auctioneers say. For example, a plain west of Ireland landscape by Paul Henry that would have sold for £4,000 to £5,000 15 years ago would now fetch £25,000£30,000 and could increase tenfold in the next 15 years, says Mr O'Halloran.
Old books are also quietly coming back into fashion as collectibles although condition is all-important, says Mr Mealy. In 1997, Mealy's sold a copy of Picata Hibernia by Thomas Stafford in good condition for £1,000. Last year, a copy of the same book in superior condition fetched £2,600.
"Prices have been going up at a fairly significant rate for most things over the last 10 years. Plus, you're benefiting from having these things around you in your home,` says Mr O'Halloran. "A share certificate you just put in a drawer but with a painting or antique, there is an emotional and aesthetic return as well as a potential increase in capital value."
Like stocks and shares, however, prices for antiques and collectibles can fall as well as rise. People who invested in gold sovereigns some years ago lost heavily when the metal's price fell, says Michael Jordan, owner of O'Reilly's Auction Rooms, even though antique gold has retained its value.
Styles of painting and furniture can also go out of fashion. Men's gold jewellery, antique watches and heavy Victorian furniture are out of favour although the astute investor might well decide this is the time to invest and wait for prices to rise.
"If you're buying for investment, there are a few criteria to look at, namely scarcity, quality and provenance - the history of the item," says Bryan Greene of Thomas P Adams & Co, the fine art auctioneers in Blackrock, Co Dublin. "If, for instance, the item was owned by someone famous, that would add a premium if the family history can be publicised."
Knowing the origin of an item is important because of the number of forgeries, particularly on the international art market. Many people have also been burned buying something they thought was a bargain only to discover later it was a reproduction. Buy only from a reputable source and get advice on what is likely to appreciate in value, experts caution.
"People wouldn't dream of putting £25,000 into shares of a company they knew nothing about. Why should that be different when buying a painting? Its important to do your homework," says Mr O'Halloran.
And it's important to buy something you like, even if it does not achieve the returns you hope for.
"There are very few occasions where, if you are buying the right article, it will fall in value. Good Irish furniture at the top end of the market, for example, is appreciating about 1820 per cent a year," Mr Mealy says. "But buy something you like and can live with. There's no point in buying something for investment on someone else's advice and then hiding it under the bed."
"It's all about supply and demand, whether its stocks and shares or antiques. But with antiques, the supply is diminishing," says Mr Jordan. "My advice is, don't buy something unless you like it because if you like it, chances are others will as well and if you go to sell it, you should get the price."
