Investors turn to arts and antiques

Volatility in financial markets is pushing investors to alternative investments such as art and antiques.

The Royal Institution of Chartered Surveyors (Rics) first art and antiques survey reveals 20 per cent more surveyors reported a rise than a fall in auction lot prices.

Lots over £5,000 have seen increases from 50 per cent more Rics members.

However, items worth under £5,000 have recorded muted growth – suggesting amateur collectors are reigning in their spending, but higher earners are turning to antiques for investments.

The best performing sector was silver in the first quarter of 2008, while furniture lots costing over £5,000 finds 37 per cent more surveyors seeing price rises.

In art, lots over £5,000 also saw rises – with particular interest from the urban market in modern artists, such as Banksy, Damien Hirst and Peter Doig, all selling works in excess of £10,000.

Rics spokesman Christopher Ewbank said: "The arts and antiques market remains a viable investment option during this period of financial uncertainty.

"Many investors are using their disposable incomes to buy in at the high end with the hope that value will continue to stay firm while stocks and bonds ebb and flow."

He added high salaries and large bonuses in many employment sectors have also led to a high volume of new buyers entering the arts and antiques market, which has helped to push up the prices of lots.

"This is most evident in the arts due to the rise in popularity of 21st century art," Mr Ewbank said.

The strength of the pound against the dollar has seen US investors turn away from UK auction houses – but the sector is forecast to continue performing while other investment opportunities carry a higher risk.

The weakest sector of the antique market was found to be clocks – remaining a niche.

Over the next three months 17 per cent more surveyors expect lot sales to increase, while 32 per cent more surveyors expect lot prices to increase.