2014 / Investing
Antique Rugs: An Investment in More Ways than One with Peter Pap
Picture this. You finally move in to your long coveted downtown San Francisco home. You’ve always been a lover of the arts and San Francisco provides all you want and more. With great galleries, exhibits and shows all around and within walking distance, you can’t think of a better place to live in the world. You appreciate genuine collectibles that provide aesthetic beauty and are a great value to boot.
The furnishings in your new home reflect your enjoyment of the arts as well. From your furniture to your light fixtures, each piece tells its own story. But something seems to be missing that you can’t quite put your finger on. As you are now quite fond of doing, you take a walk around the city to clear your mind and breathe in the sights. Walking past all sorts of galleries and showrooms, your mind ponders on what is the missing piece that your home needs.
A gallery on Jackson Street has the answer for you right in its name: Peter Pap Oriental Rugs
An Investment with Value
Collectibles have always been a unique type of investment. It’s a very niche field that requires decades of experience in order to spot a good deal. There are reality TV shows devoted to the collection and pricing of rare collectibles. There is a certain “rush” that goes into finding that rare collectible that provides beauty, value and will appreciate in price year after year. There are many factors that go into investing into collectibles, such as the price, condition and history of the piece. They are similar to traditional investments such as investing in a stock or mutual fund but they are also different in that you can appreciate and enjoy the investment while you own it. Let’s face it, admiring the numbers in your retirement accounts is not as enjoyable as a beautiful 19th century Persian rug in your living room.
Value is paramount when it comes to collectibles, and that holds true when choosing a spectacular rug. Peter Pap has been collecting and showcasing rugs for close to 40 years, so he knows a few things about choosing a great one. He lists 6 key factors to look for when choosing a rug: Color, Design, Rarity, Craftsmanship, Condition and Overall Feel. This is not so different than the process that goes into choosing the appropriate investment. Price is not the only important factor to look at when it comes to making any kind of investment. This leads to the next important point when it comes to buying a mutual fund or a great rug for your living room
Great Advice is Key
Investing in anything is always a risky proposition. A positive return is never guaranteed no matter how “safe” the investment seems. But one thing is for sure, and that is having a knowledgeable and reputable advisor greatly increases your chances of succeeding. Mr. Pap states this idea very simply by saying, “Rugs have a history of appreciating in value over the long term. For this reason, I always advise my clients to take the long view, much as they would with a blue-chip stock.”
Whether it’s buying a rug or crafting your retirement portfolio, you want someone advising you that’s “been in the trenches” and can give you insight that you would have never gained doing years of research on your own. You also want an advisor who stands by their work, as Mr. Pap does by allowing you to trade in any purchased rug for a full credit as long as it is properly maintained. Reputable dealers like these are not in it for the short term commissions, but are looking for a long term relationship built on trust.
Choosing the right rug for your home can provide your living room the pop that it needs to stand out. A great rug is like a great investment in many ways. They can both appreciate in value over time if they are purchased at a great price and they have all of the necessary characteristics. A great advisor like Peter Pap is necessary to be sure that your investment is sound and in will meet your expectations. A good investment will also pay you a dividend every so often, sort of a perpetual “thank you”. A great rug throws off a nice dividend as well: enjoying the visual beauty that a superb rug can provide you and your guests day after day.