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The potential for antiques being rendered worthless as assets through governmental regulation (antiques as stranded assets)

 
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 A Forest
(@elm)
Estimable Member
Joined: 2 years ago
Posts: 57
Topic starter 29/03/2024 10:49 am  

I was just reading an article in the most recent atg and it reminded me of a concept that I have been pondering for a while. First of all in relation to materials such as ivory that are already increasingly regulated and difficult/largely impossible to utilize as financial assets. Then in relation to antiquities where the suspicion of looting is felt throughout the market, making the trade more challenging. How do you define historical illegitimate acquisition? How far back in history should the law work retroactively? In the atg article it goes into new EU legislation that seemingly criminalizes non-European origin antiques that have no provenance of 'legitimate' acquisition from the country of origin. This introduces the concept that antiques without provenance are in some way illegal, how can you say for certain that they were not illegitimately acquired at some point in their history? This concept is particularly pernicious as the vast majority of antiques have no verifiable provenance.

 

I have made a hypothetical chart on antiques as stranded assets (This chart is merely something I have quickly drawn up to illustrate the concept and is not based on any real word data). I have also included an image of the atg article.

 

The concept of Stranded assets - https://en.wikipedia.org/wiki/Stranded_asset

 

0 atg
1 chart

 


   
Julia, Sharon P, Adams Asian Art and 1 people reacted
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RAHawk
 RAHawk
(@rahawkins)
Noble Member
Joined: 3 years ago
Posts: 742
29/03/2024 5:49 pm  

Antiques without provenance probably wont be a problem if the item is classifiable as and export.  For instance, items traded at world's fairs in the 19th and 20th century shoudnt require complete provenance for sale as it is safe to assume it was paid for.

If it were stolen domestically, a police report would need to be on file, and you would have standing to recoup losses.

However, still, incomplete provenance is a challenge when it comes to sorting fakes from authentic antiques.

As and aside, not every story is as sympathetic as the Summer Palace one.


   
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Sharon P
 Sharon P
(@sharonp)
Illustrious Member
Joined: 5 years ago
Posts: 4505
29/03/2024 7:16 pm  

@rahawkins Keep your receipts, in most jurisdictions of the U.S., the good faith (bonafide) purchaser doctrine will make you sleep better. 🤗


   
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 A Forest
(@elm)
Estimable Member
Joined: 2 years ago
Posts: 57
Topic starter 30/03/2024 11:00 am  

@rahawkins 

In the case represented in the ATG article, the EU official states 'two categories of cultural goods have been created; high risk and low risk'. Perhaps typically exported items would fall under 'low risk' and rarer more domestically orientated items like Imperial wares would be considered 'high risk'. This is just in regard to one piece of legislation of course and I am not sure how they will determine 'high risk' and 'low risk', though even in the case of 'low risk' it is not the same as saying 'no risk'.

Another angle I thought to mention is the occasional sentiment I see pop up in relation to what are deemed 'culturally significant' items such as antiquities. I remember ATG a while back referenced a UNESCO campaign against looted artefacts that seemed to nudge at the idea that culturally 'significant items' should not be possessed by private individuals (which is outside of the scope of items that have been explicitly looted).

It is not my intention to unduly scaremonger, though I thought it was worthwhile to raise some awareness around this potential issue among collectors. This seems like an emerging trend among policymakers, with the ivory laws we have already seen how seemingly 'ham-fisted' they are prepared to be.


   
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Sharon P
 Sharon P
(@sharonp)
Illustrious Member
Joined: 5 years ago
Posts: 4505
30/03/2024 12:58 pm  

@elm I do believe in exceptions for antique pieces of ivory and feel it is barbaric to destroy pieces of art, however, I have enough sense to know that there would not be any poaching going on if there was no market for poached ivory. As to coral, pearl and mahogany and other woods, they are being farmed. Contrary to popular belief, you can buy fine furniture made from kiln dried plantation grown mahogany in Indonesia, which will not split from exposure to forced air furnaces, but like everywhere else in the world, you will pay a premium for it. Petroleum products are used in almost everything, so that even the most rabid wingnut in the world is using petroleum products, unless they are sitting alone in a cave foraging for roadkill and dandelions. Keep your oil and gas stock.


   
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