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Assets Incognito – Objets D’art as Investment

Objet d’art is French for “art object”, but might also translate as “blue-chip asset” to investors. These small antiques are the unsung heroes of the art market; they possess all the characteristics of greatness, but are often overlooked due to art snobbery and ignorance.

Regardless of whether it is a British gold and hardstone seal of the Regency era or a Japanese boxwood netsuke of the late Edo period, objets d’art are works of art in miniature. They fascinate us with their diminutive yet striking details and carefully crafted, petite forms. And rightly so; they are fine art made Lilliputian.

Objets d’art refers to any small, finely made item intended primarily for decoration. Thus, it covers a wide range of art, but specifically excludes paintings, large sculptures, prints and any of the other “major arts”.

Perhaps the most quintessential objets d’art are the jeweled Easter eggs produced by Carl Faberge for Russia’s Czars during the late 19th and early 20th centuries. These Faberge eggs were incredibly compact, yet created from the most precious of materials. And, of course, they were all manufactured to the very highest of standards.

These three attributes of extreme portability, high grade materials and fine craftsmanship not only effectively define the essence of an objet d’art, but also explain why they excel as investments.

While we all instantly recognize paintings and sculptures as art, the minor arts provide a startlingly rich – and oftentimes overlooked – field from which to pick investments. Objets d’art magnificently embody the most desirable characteristics of investment grade art. They are almost always crafted from the most coveted of materials – precious metals, exquisite gems, rich enamels and exotic woods to name a few. And the level of artistry displayed in their execution is often legendary.

Consequently, objets d’art are remarkably small in size yet commonly possess tremendously high value density. A single outstanding objet d’art might fit snugly in the palm of your hand, yet be worth, quite literally, more than its weight in gold.

A few outstanding examples of obtainable objets d’art (in addition to the British gold seals and Japanese netsuke mentioned above) are European art medals, silver cigarette and cigar cases, Japanese tsuba, and antique jade carvings. This list is not exhaustive by any means; there are many other categories of objets d’art.

And while in the popular imagination objets d’art might cost hundreds of thousands or even millions of dollars, in reality, good quality examples from the list above can often be purchased for only a few hundred dollars or even less in some cases! If you desire the best of the best, a few thousand dollars can get you items of unparalleled beauty and craftsmanship from some of the most prominent artists and luxury houses of the 19th and 20th centuries.

In a universe of overvalued traditional financial assets, objets d’art are a shining point of value in a tiny constellation of alternative assets.

How Old Is Antique?

How old is antique? What age must an item reach before it can be considered antique? It is an intriguing question with no simple answer.

It used to be, long ago, that an item was antique once it was more than 100 years old. This traditional definition derived from British import/export law and later became a convention in the antique trade. So in 1925, for example, only items from 1825 or before were thought of as legitimate antiques in the trade. However, the 100 year rule is now widely considered defunct in the industry, with only the most ardent of traditionalists still adhering to the concept.

Another, even older, rule of thumb is that only hand crafted items can be considered antiques. This is a throwback to the immense changes in European manufacturing techniques that took place during the Industrial Revolution of the late 18th century. In a certain sense this guideline is much less arbitrary than the 100 year old rule.

However, it too has major drawbacks. For one, how do you treat recently created items that have been hand crafted? For this reason, among others, the hand-made test for antiques isn’t widely used.

So where does that leave us? While any standard we choose will be somewhat arbitrary by necessity, I believe a reasonable conclusion can still be made. First, antiques are generally older than vintage or retro items although the latter two terms can be rather flexible. But, in my opinion, requiring an age of 100 years is too restrictive. So where do we draw the line?

At this point, I can’t help but think back to when I used to visit antique stores with my grandmother during the late 1980s to mid 1990s. When browsing through the accumulated treasures, we rarely spent much time on anything produced after World War II. They might have still been collectible, but we didn’t consider them quite old enough yet. And I think that precedent works remarkably well today too.

So how old is antique? In my opinion, an item can generally be considered antique once it is about 50 years old. This means that today, in 2015, items produced anywhere from 1965 to 1975 gradually transition into antique status. Although admittedly unscientific, this guideline functions unexpectedly well in the real world. It helps us mentally divide more recent collectibles and fads from older, more seasoned and desirable antiques.