Investing in Antiquities: Caveat Emptor — Let the Buyer Beware!

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Photo courtesy of Sotheby’s
Caveat Emptor — let the buyer beware — is an ancient Roman Latin expression that’s been passed down through the centuries.

It should be remembered every time someone makes a major purchase like a car, truck, RV, house, business, investments or collectables — and especially antiquities.

What Is an Antiquity?​

An antiquity is a piece of art produced by an ancient people, from around the years 5000 B.C. to A.D. 500. The most common and popular antiquities originate in ancient Egypt, Greece and Rome, although there also are antiquities from other ancient civilizations.

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Photo courtesy of Sotheby’s. Roman Gilt Bronze Mirror Cover, Circa 2nd Century AD. Auctioned July 2019

Antiquities as Investments​


Ancient pieces of art — antiquities — have consistently appreciated in value anywhere from 5% to 10% per year over the past several years. An investor can purchase an antiquity, personally enjoy the ancient work of art and experience steady appreciation on the investment. It’s absolutely necessary to purchase the antiquity from a reputable dealer or auction house. An investor also needs to obtain as much detailed documentation as possible from the previous owner, and the piece must be in good condition.

The most popular antiquities with investors today center on three basic categories, although some excellent values may be found in other categories, too. The three most popular categories are:

  • Ancient Greek terracotta figurines
  • Small Roman bronzes
  • Ancient Roman and North African oil lamps

Why Antiquities Investors Must Beware – Caveat Emptor!​


Unscrupulous antiquities dealers have sold fake or stolen items to the detriment of unsuspecting investors. Staff at archeological digs have stolen items they found. During the downfall of Saddam Hussein’s Iraq, antiquities were illegally taken out of the country. This also has been an issue in other Middle Eastern countries where ancient works of art have been stolen without a valid export license. In the 1980s in the U.S. some antiquities stores sold fake merchandise to the gullible public.

The Rand Corp. reported that illicit antiquity trading has been used to finance terrorist organizations. In October 2021, The New York Times reported the guilty plea of Mehrdad Sadigh, who confessed that his antiquities business was a scam. He had mass produced fake products in back rooms of his personal office. He even issued fake certificates of authenticity.

Caveat Emptor!

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Photo courtesy of Sotheby’s. Terracotta figure of Aphrodite, Circa 2nd Century B.C. Auctioned in July 2019.

Where Are the Best Places to Buy Antiquities for Investments?​


Although dishonest antiquities dealers have sold fake merchandise, there are more than enough legitimate dealers and auction houses that cater to sophisticated antiquities investors. This is especially true with the two famous English auction houses, Sotheby’s and Christie’s. Both auction houses claim to be the leader in the market for ancient works of art. Christie’s appears to be the only auction house of the pair that offers antiquities auctions in both New York and London. At a London auction in 2018, Sotheby’s Ancient Antiquities and Works of Art Department sold 6.8 million British pound sterling (GBP), exceeding its presale estimate of 2.7 million GBP to 3.9 million GBP. Christie’s next live auction is scheduled for this month.

Regarding its antiquities auctions, Christie’s reports:

Four times per year, the department offers the finest examples of Classical and Egyptian sculpture, Athenian and South Italian pottery and ancient Greek and Near Eastern gemstones and jewelry, achieving world-record results by attracting a wide range of collectors — both dedicated antiquities collectors and new buyers.

Recent sales have included a Roman marble terminal figure of Dionysus that once formed part of the prestigious collection at Lansdowne House and sold for £862,500 (London, December 2020), and an Attic red-figured kylix, attributed to Makron as painter and signed by Hieron as potter, that sold for $1,830,000 (New York, October 2020) — a world record for an Attic vase.

Antiquities Crypto​


In 2021, the Rare Antiquities Token (RAT) was introduced to the public. In its LinkedIn overview, the RAT is described in this way:

Bringing crypto to the mainstream through the museum gallery and heritage sector.

Minting non-fungible tokens (NFTs) from purchased antiquities and rewarding holders with fractional ownership.

The website for the Rare Antiquities Token promotes itself in several bold statements:

The Rare Antiquities Token (RAT) Is The Utility Token Used On The RAT NFT Marketplace At Https://RATbits.Com

Own A Piece Of The Finest Antiquities By Simply Purchasing The Rare Antiquities Token And Receiving An NFT Fraction Proportionate To Your Holding Of The Token.

A 3% Tax On All Token Purchases Facilitates The Purchase Of Antiquities That Create A Stable Price Floor For The Rare Antiquities Token.

The Platform Is Used By Collectors, Creators And Artists To Fractionalize Their Finest Antiquities So That The Joy Of Each Masterpiece Can Be Enjoyed By Many.

But one wonders how successful this token has been since its introduction. As of Dec. 17, its price is $0.00001661.
 
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