With banks failing, some individuals are looking for other places to invest their hard earned dollars. Things that will ride out the recession, no matter how long it lasts. A recession of this magnitude generally lasts at least a decade.
There are many durable goods that fall into the class of "investments" rather than ordinary purchases, simply because they tend to appreciate over time, instead of losing value. For precisely the reason why a house is an investment, but a car is a purchase. One gains value, the other declines in value.
Handmade oriental rugs, both contemporary, and antique, can be a good investment, because the value grows over time, if the carpet is properly cared for and protected from damage, stains, excessive traffic, or sun-fading.
A rug can gain value while in use, if it is not exposed to high traffic, and if it is kept out of areas where spills can stain it. It should be placed out of full sun, and cleaned regularly to keep it in the best condition. If the rug is already an antique, greater care must be taken in use and display.
Some collectors are casual about the preservation of the rug – displaying it in a low traffic area, or on a wall. Others are more particular, creating special cases where they can store multiple rugs, hung on frames where they can be browsed through. A few go as far as temperature and moisture controlled environments for very rare carpets.
If a collectible rug is stored, it should be protected from moisture, rodents and insects, any of which can cause serious damage. Higher value rugs should be individually insured as well. Values on handmade rugs run the gamut, from a few thousand, on up. Older rugs tend to be the better investments.
During an economic recession, the price of rugs, along with the price of other non-essential goods, may drop temporarily. Just because a price drops during an economic crunch does not mean the investment is not sound – the difference between good investments and bad ones is that the good ones come back. Historically, rugs are one of the investment items that do come back, and which never quite bottom out in the middle.
A recession can be a good time to pick up good deals on rugs of any age. As long as it is a good quality handmade rug, the price is likely to appreciate again as the economy strengthens.
Written by Laura Wheeler, marketing assistant for Image Carpets, Inc - http://www.imagecarpetsinc.com Professional handmade antique oriental rug showroom in New York.
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