The British people have had a love affair with antiques for centuries. No 18th century Georgian landowner’s holdings were complete without a fine house in London and a sprawling country estate, both of which were invariably decorated with the finest antiques available. In the late 19th and early 20th century, wealthy British industrials took up the mantle from their aristocratic predecessors, stuffing their palatial mansions with hundreds, if not thousands, of antiques. Today, antique investing is a more egalitarian affair, having been adopted wholesale by the British middle class.
This effortless social acceptance of antiques and art as a legitimate investment class in the British Isles has serious financial ramifications. It means that British investors are, on average, more willing to sink serious money into these alternative assets and take the leap to becoming British antique investors. Although stocks and bonds still constitute the majority of British investment portfolios, antiques are by no means ignored.
This situation contrasts sharply with U.S. investor preference, where anything outside of vanilla equities or fixed income instruments is often viewed with deep suspicion. Even relatively staid investments like real estate are often eschewed by American investors unless they come neatly pre-packaged in an easily tradable, equity-like ETF (exchange traded fund) or REIT (real estate investment trust) version.
But why is this so? Why are British antique investors drawn to the old and precious with such ardor? I believe there are powerful cultural reasons why British investors gravitate towards antiques.
First, unlike most other Anglosphere countries, Great Britain has a long and storied history that stretches back to ancient times. England has been ruled by people as varied as the Celts, Romans, Anglo-Saxons and Normans. And that list excludes the island’s most recent 900 years of history! In comparison, nearly all other Anglosphere nations – the U.S., Canada, Australia and New Zealand – have histories that span no more than a few hundred years at most.
Naturally, it shouldn’t come as a surprise that antiques have been omnipresent in British high society since time immemorial. This familiarity has permeated British society to the point that the average British person intuitively understands the advantage and disadvantages of antiques.
Do you need your money back in 2 years? Then a bank CD is a better place for your hard earned cash. But if you want to stash that cash for a couple decades or longer, antiques, with their zero coupon bond characteristics, are an ideal investment vehicle. These subtleties are lost on most U.S. investors due to their lack of experience with antiques.
Another big reason British investors love antiques is because of their once dominant global empire. From the late 18th century to the mid 20th century, the British Empire, with London at its heart, spanned the globe. During this period, goods and commodities of every description, including antiques, fine art and antiquities, flooded into the imperial capital from the farthest reaches of the Empire.
Over time, British citizens became familiar with antiques and art from a plethora of different cultures, including exotic Indian jewelry, sensuous Chinese jade sculptures and ancient Egyptian artifacts, just to name a few. Although the British Empire is no more, its far reaching trade network has left an indelible footprint on the British aesthetic palate.
Today, London’s position as a global financial hub has helped the antiques trade retain its prominent place in British Society. Trillions of dollars of global capital flow through London every year looking for safe and lucrative investments. And this financial clout, coupled with Britain’s cultural history, prompts many international art and antique investors to make their acquisitions there.
In fact, in 2016 Great Britain’s market share of the world’s antique and art trade was an impressive 24%, second only to the U.S. This is a remarkable feat considering that British GDP only represents 3.5% of global GDP.
Right now high quality antiques represent one of the greatest bargains in the investment world. And British antique investors are better positioned than almost any other people to reap these rich rewards. Because of their history and culture, more British citizens either already own antiques in their investment portfolio or will be inclined to buy when the right opportunity comes along. Of course, the British antique investors’ cultural advantage can become your advantage too. All you need is an open mind and a willingness to learn.
