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A
s an investment advisor to high net-
worth individuals, I encourage clients
to consider diversifying their portfo-
lios into alternative asset classes such as fine art
and antiques. Unlike other investments, they
can imbue an individual with a sense of
achievement and pleasure in owning some-
thing rare and beautiful. Antiques and fine art
can add diversification, not only to a portfolio,
but to one’s life, with many benefits, including
the opportunity for appreciation.
Making antiques and fine art a component
of your financial portfolio offers a three-prong
value proposition.
• Whether you are a high net-worth investor
or novice collector, you can potentially
realize financial returns through careful
attention to quality, selection, and by
gaining the advice of experts in the selec-
tionprocess.Historically,thehighest-quality
items of a genre can generate the most sig-
nificant returns, assuming they are held
onto for at least five years or longer. While
you don’t have the liquidity of a stock or
bond, you have intrinsic value. With
antiques and art, you should have a long-
term mindset.
• Collecting can develop and encourage a
passion that adds a qualitative dimension
to your life. Your selections can be nar-
rowly focused or can range across multiple
centuries and genres.
• The journey of collecting becomes more
and more exciting as you look forward to
the experiences of traveling from shop to
shop and auction to auction, feeling the
How do the rates of return on antiques and fine art compare to traditional asset classes? Rather
well, thank you! The annualized rates of return for traditional investment classes are as follows:
Asset Class Last 5 Yrs* Last 10 Yrs* Last 20 Yrs* Last 50 Yrs*
S&P 500 -2.2 -1.4 8.4 9.2
Nasdaq Composite
Index
-4.6 -2.8 8.1 —
Dow Jones Wilshire
REIT
.7 7.7 7.5 —
Long Term Gov. Bonds 10.3 8.4 10.1 7.5
Inflation (CPI) 2.7 2.5 2.8 4.1
International Value
Index
3.1 7.1 8.0 —
MSCI Emerging Markets
Index
8.0 9.3 10.1 —
Stats from: Dimensional Fund Advisors Matrix Book 2009.
*Annualized rates of return are for the period ending 12/31/08. All returns are in U.S. dollars.
investing in antiques
Fuel Your Passion,
Grow Your Collection &
…Add to Your Portfolio!
by Irvin G. Schorsch III
Edward Henry Potthast (1857–1927), A Hazy
Day. Oil on board, 7 ½ x 9 ½ inches. $35,000.
Courtesy Godel & Co Fine Art, New York.
“Don’t be in a hurry to buy, take your time and
learn. The internet is a good resource, but you
need to work with a dealer who knows the
material and the market. A good dealer will
guide you and give you time to decide; do not
feel pressured to make a decision on the spot.
On a scale of one to ten, always try to buy an
eight, nine, or ten; it is all about the quality.”
— Howard Godel, president,
Godel & Co. Fine Art

2. 206 www.antiquesandfineart.com Autumn/Winter
excitement of the hunt. Appealing to the
tactile and visual elements that humans
need, as well as the satisfaction of acquisi-
tion, the pursuit of antiques and art can be a
much more satisfying experience than
investing in the stock market.
Experts in the field continually counsel col-
lectors to buy the best they can afford at their
price level. If you focus on the superior class of
antiques and fine art, it is entirely reasonable to
expect rates of return comparable to or
exceeding the returns for traditional asset
classes illustrated in the chart. With antiques
and art, you are buying a scarce resource that
will only get scarcer over time.
While the day-to-day shifts of the stock
market are not part of the art market, be pre-
pared, however, for volatility and fluctuations in
what is deemed desirable at any particular time.
In investment terms, we refer to this variation
of demand as the volatility of demand and
supply for an alternative asset class. As with
stocks and bonds, there is no crystal ball, but as
Stephen Fletcher, executive vice president of
Skinner Auctions, says, “Quality items that
have integrity, provenance, beauty, and rarity
are most resistant to changes in the market.”
Sculpture of a woman, unidentified artist, American, 1930.
Carved granite, H. 12 3/4, H. 10, D. 5 ¾ inches. $15,000.
Courtesy Jeffrey Tillou Antiques, Litchfield, Conn.
“You don’t have to have a lot of money to collect. Look at your income,
at what is disposable, and at a number that makes sense for your
situation. I encourage people to buy what they love and make good
choices and good judgments.” — Jeffrey Tillou, Jeffrey Tillou Antiques
Pair of Wharton Esherick stools, Inscribed
with monogram and dated “1956.”
Approximate price: $10–$12,000. Courtesy
Keno Auctions, New York, NY.
“Dealers build relationships by advising
clients rather than just selling to them.”
— Leigh Keno, president, Keno Auctions

3. 2009 Antiques & Fine Art 207
Pair of fan-back Windsor armchairs with
bulbous turned legs, Connecticut, 1790–1795.
Maple and oak. Nathan Liverant & Son,
Colchester, Conn. These sculptural chairs have
an old refinish, making them attainable for
new collectors. $6,500.
“Antiques ignite a search for knowledge and a
passion for collection history. If you fall in love
with something, it doesn’t always matter that
there is no room in the house; you will always
find room.”
— Arthur Liverant, Nathan Liverant & Son
James McDougal Hart (1828–1901), Along the
Niantic River: Study from Nature, 1849. Oil on
paper, 12⅛ x 14½ inches. Signed and dated (at
lower left): J. M. Hart / May 1849. $22,000.
Courtesy Hirschl & Adler Galleries, New York.
“There are opportunities in collecting at any
level. Right now there is a lot of material for
sale and the best could cost relatively little,
though there is still a frenzy to buy wonderful
works of art. Always work with someone
knowledgeable who can advise you.
In the forty-two years since I have worked
with art and antiques, the people who have
formed the best collections are those who
bought the best they could afford; the worst
collections were formed by people trying to
beat the system. You cannot search for bargains
and expect to make money.”
— Stuart Feld, president,
Hirschl & Adler Galleries
The correlation of returns in antiques and
fine art relative to traditional asset classes is
dramatically different, a very positive fact
when building diversified portfolios. In other
words, when the stock markets zig, antiques
zag, and that’s a wonderful attribute. Because
antiques and fine art are less liquid than, say,
bonds, stocks, real estate, and currencies, they
offer a level of diversification that, over time,
may provide not only financial growth to the
current generation, but aesthetic value and
financial appreciation that can be passed down
within a family.
In addition to the generational wealth
transfer opportunities in collecting fine art
and antiques, there is also the excitement of
owning a piece of history. You can access the
past through objects; gaining knowledge
while improving your connoisseurship skills,
through books, museums, shows, and by
talking with the experts. Consider a silver
tankard made by Paul Revere. It conjures
thoughts of the American Revolution and the
man who played so key a role in American
history. Such objects do far more than deco-
rate the home and office—they also excite
the imagination!

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Blackhawk Weathervane, American, ca. 1875. Molded copper
with cast ears and beautiful verdigris surface. H. 17, L. 24 inches.
$9,500. Courtesy of Olde Hope Antiques, New Hope, Pa.
“People collect because they have an interest in and love of
the material. I would recommend working with dealers who
are members of organizations such as the Antiques Dealers
Association (ADA). From a practical standpoint, anyone
would be advised to buy good antique furnishings, whatever
their stylistic preference, as opposed to contemporary
versions, as there will always be some value in the former
and virtually none in the latter once it is out of the store.”
— Patrick Bell, Olde Hope Antiques
Federal mahogany tall clock, Joshua Wilder, Hingham, Mass.,
ca. 1810; painted iron dial attributed to Spencer Nolen. $30,810
(sold 6/7/09). Courtesy Skinner Inc., Boston and Marlborough, Mass.
“There is much opportunity for young collectors, but they are
intimidated…Get started by going to local antiques shows and
auctions… Just walk in and talk to the dealers, auctioneers, and
department specialists, and familiarize yourself with the material,
and get over the initial sticker shock. Ask about the prices. Build
relationships…Young people buy houses and want to furnish them
immediately. I don’t recommend people hurry. The investment
will be the result of doing your homework and developing a sense
for the material and the market.”
— Stephen Fletcher, executive vice president, Skinner Inc.

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Silver cann with strap handle, made by William Simpkins
(1704–1780), Boston, ca. 1750. Under $10,000. Courtesy
of Jonathan & Paige Trace, Portsmouth, N.H.
“Budding collectors, even with a passing interest, have a
tremendous opportunity—more so than any time in the last
twenty-five to thirty years—to make investments now to
furnish their homes and assemble a collection. Quality
antiques and modern pieces mix together well and make a
collection both comfortable and beautiful at the same time.”
— Jonathan Trace
Carved and painted “American Flag” tramp art
frame, American, ca. 1890. Wood. 16 x 14 inches.
$19,500. Courtesy Hyland Granby Antiques,
Hyannis Port, Mass.
“Maritime collectors see the value in owning won-
derful objects that add quality to their life. Over
the last few decades, the successful maritime col-
lectors have been more focused on higher quality
items. For new investors, the main recommenda-
tion is to become educated by visiting museums,
antiques shops, galleries, and shows, and working
with experts who can develop your eye as to
quality, which will result in sound purchases.”
— Alan Granby, Hyland Granby Antiques.
The pleasure objects offer is immeasur-
able, and a major benefit in owning art and
antiques. Another benefit is the way col-
lecting art nourishes relationships with
friends, family, and even strangers, who meet
at antiques shows and share collecting oppor-
tunities. Spousal relationships also benefit
from such a shared interest. Couples invari-
ably spend many uncounted hours sharing
opinions, making joint acquisitions, and
placing purchases in the house. Children can
also join in the excitement of collecting art
and antiques. Old coins, pirate books, sea-
man’s journals, whale’s teeth, and schoolgirl
samplers can peak their interest. Thus, con-
sider collecting as a way of life that can be
rewarding on many levels.
Remember, in addition to adding to your
investment portfolio, you are embarking on a
journey to find objects that will enhance your
life. But be warned: If you buy what you love,
although you may be amazed at the returns
over time, you may not want to part with your
favorite pieces of furniture or artwork!
Presented here are examples of antiques and
fine art from industry leaders to encourage
your interest and your collecting.
Irvin G. Schorsch III, CIMA, CFP, AIF,
president and founder of Pennsylvania
Capital Management, located in
Jenkintown, Pennsylvania, approaches
wealth creation for clients as he does
collecting: with passion, an emphasis on
building relationships, and a mission to
deliver life-enhancing financial strategies.