Posted on August 2, 2016 by Behnam Rugs

Persian and Oriental Rugs as Investments

You may often hear that hand-knotted Oriental and Persian rugs make good investments. This is truer for some rugs than others. While older rugs can increase in value and have the potential to provide a return on investment, this is often not the case for newer rugs.

They may increase in value over time, but it’s best to look at hand-knotted rugs as an investment only in the sense that they will last a long time.

All rugs, no matter their age, need to be evaluated individually. Factors that play into the value of a rug include the artistry of the rug, its condition, age, origin, material, construction, and style.

If you are having your rug appraised, its value generally is set by comparing to industry publications that contain selling prices of different kinds of rugs, such as a Sotheby’s rug auction catalog.

For rugs that are not particularly rare, the prevailing market price will generally determine the value of the rug. The size of the market affects the rug’s value, and the person doing the appraisal needs to specify the market. For example, a hand-knotted rug that is part of a running designer line will not hold its value in the same way that a one-of-a-kind vintage rug will.

To make sure the rug is appraised accurately, you want an appraiser who is well qualified. When looking for an appraiser, you should ask to see samples of his work, and how many rugs he buys and sells. Some appraisers are certified by professional associations. Others may not be certified, but this does not necessarily mean that they are less proficient. They may have many years of experience.

An appraisal will include a description of the rug, which will describe its condition, size, and whether it has been repaired at any time. It will also include the age of the rug, where it was made, and a description of how it was made, including the material and knot type. A rug’s current value will also be included in the appraisal.

Because rug values change frequently due to the demands of the rug market, appraisals should be updated about every three years or so. If the rug has been damaged or is in less than stellar condition, an appraisal will specify this information, too.

Not all antique Persian and Oriental rugs will increase in value. For example, if the rug is a fairly common type and is not of the highest quality, it is unlikely to increase in value. Rare, well-made rugs are quite sought after, however. The value of these rugs will depend on exactly how rare the rug is, what condition the rug is in, its design, and what the current trends in the market reflect.

As with most antiques, certain styles that are more popular at one time give way to other styles at another time. What is in fashion at a particular time will have a significant impact on price. This is part of why appraisals need to be updated fairly frequently. It is also worth noting that appraisals should be kept up to date for insurance purposes, too, as many insurance companies will not honor appraisals over three years old.

We encourage you to purchase a rug because its design speaks to you, not because you think it is going to increase in value. You should purchase a rug whose beauty you find breathtaking. It should make you smile every time you look at it. Call 972-733-0400 to inquire about appraisals, cleaning, or repairs.