Invest or Not?

Q I have the opportunity to invest in a J. M. Young Company settle. It is model #274, very similar to an L. & J.G. Stickley settle, with multiple slats under the arms and back. It is signed and has its original finish. Do you think this would be a good investment?

A If you’re looking for a good investment, buy Apple stock. If you’re looking for a place to sit, buy the J. M. Young settle.
Over the past 2 decades, Arts & Crafts antiques underwent a rapid growth in popularity, and prices soared. However, as every market matures, prices tend to level out. Collectors who bought in the 1980s and early 1990s have seen their pieces increase in value, but a continued increase cannot be securely projected into the future.

The profit in any antique sale comes not in the selling, but in the buying. You and I cannot control the selling price. If auction prices and sales records determine that a J. M. Young settle is worth $3500, that is its selling price. You might ask $5000 for yours, but chances are you won’t get it. If you paid $3500 for it and that is what its value remains, then you won’t have made any money from it. If, however, you negotiated a buying price of $2500 (perhaps by offering cash, handling the delivery yourself, or just plain luck) then you may make a profit when you sell it.
Another problem with buying antiques as an investment is their fragility. Your Apple stock doesn’t come with a condition report, but what if your cat uses your settle as a scratching post while you are at work? Or your housekeeper spills her gin-and-tonic down the shellac finish? Life comes at you fast—and your $3500 settle can suddenly be worth $2500—something your insurance company is probably not going to understand.

If, despite these caveats, you are determined to liquidate your 401(k) and invest in antiques, here are some tips. Buy rare, desirable forms from established, desirable makers. Make sure the piece has never been refinished or repaired. It must be signed or undeniably identifiable through construction techniques and company catalogs. It should have a perfect pedigree, such as having descended through one family or having come from a major collection. And this should all be in writing. Guaranteed.
Chances are you are going to have to pay a lot more money for what I just described than you would for your J. M. Young settle. A settle by a second-tier Arts & Crafts furniture-maker is not going to have the same appeal as a rarer form by, for instance, Harvey Ellis and Gustav Stickley.

Is a J.M. Young settle a good investment? It all depends. Image from Style 1900 Archives.