It seems news headlines about the state of our economy continue to be negative. Economic indicators such as crude oil near all time high prices, continued weakening of the housing market, sub-prime mortgage woes and the recent decline in the stock market all are routinely making news headlines.
Recently several customers have asked my opinion on what I thought the impact of this apparent economic weakening would be on the price and market of antiques in general; and more specifically for the art pottery market. While I can’t speak for the antique and collectibles market as a whole I can give some background from a historical perspective on what impact we have seen from various economic downturns in recent history as it relates to art pottery sales.
In the months after the 9/11 tragedy, many antique and collectibles dealers experienced increases in their business activity as collectors and investors focused on tangible assets. At Just Art Pottery we saw a significant increase in sales for both low-end and high-end art pottery over a several year period after the 9/11 tragedy. In speaking with other dealers of antique furniture and related collectibles, many reported similar positive sales and profits.
From about 1995 to 2001 the stock market saw rapid growth fueled primarily by technology stocks. This period was often referred to as the dot com bubble. The technology laden NASDAQ stock market index peaked in March of 2001 and steadily declined through 2002 as the dot com bubble burst. During the 2002 and 2003 period, which most economists would classify as a mild recession, we again saw significant increases in sales for both low and high end art pottery.
We didn’t necessary see increasing prices for all or even most pottery lines during these economic downturns, but we did see measurable increases in total sales volume. And certainly in both situations we did see increases in prices for certain makers such as Newcomb, Van Briggle, North Dakota, many modern pottery makers and even McCoy pottery.
While I am not yet fully convinced the economic situation is any where near as bleak as the news headlines would like us to believe, I am fairly certain there will continue to be segments of the antique market in general and most definitely lines of American and European art pottery that will offer positive investment opportunities in both the short and long-term.
