Boost for Bonhams as investors seek returns from art and antiques

BONHAMS, the auctioneer, has seen sales hit record levels in Scotland so far this year as low savings rates and the turmoil in the equities markets have encouraged investors to plough their money into antiques.

The renowned annual "Scottish sale" takes place on Tuesday but Bonhams' managing director north of the Border, Miranda Grant, said auctions held so far this year have already exceeded budgets by three or four times in some areas.

"This year so far is the best year that Bonhams Scotland has ever had. The sales are outperforming by a fortune and they are exceeding budget by many times," she said.

Grant said the firm, which is now the only major auction house to hold a dedicated Scottish art sale in this country, was attracting buyers who are frustrated at poor returns from savings and other investments. People are increasingly willing to take a punt on a rare item they like, which will usually at least hold its value.

"People who do have a bit of money are seriously hacked off with having their money sitting in the bank making very little return. The stock market is also very volatile at the moment," she said.

"Someone who had 200,000-500,000 to invest, could invest in something that is going to hold its value, look stunning on their wall and which isn't going to lose them any money - it's a win-win situation."

The soaring price of gold and silver has also delivered a significant boost to the firm's jewellery department while the re-patriation of Asian art to China has also played a major role.

Asian art sales have been so strong that Grant this year decided to form a separate department specialising in this area.

While the majority of the art that will be auctioned in the Scottish sale stays within the UK's Borders, around 80 per cent of Asian art leaves the country as cash-rich Chinese buyers have begun scouring auction houses around the world for masterpieces originating from their own country.

"The Asian art sales have gone through the roof. Our last Asian art sale made over half a million pounds, which is the first sale outside a picture sale to make that in Scotland. Whisky has been performing really well," Grant said.

This year will be the first time that Bonhams has divided its Scottish sale into two parts, after a private American collector of Scottish art decided to sell a major collection in this country.

The second part of the auction, which takes place on 31 August, includes works from Samuel Peploe, Joseph Farquharson and Robert Hutchison.

Grant said it would be "extremely naive" to ignore the wider macro-economic conditions but she is confident both sales will perform well. "I don't know if I would be feeling the same way if the paintings were valued in ranges between 2 million and 5m but the fact that they are 300,000-500,000 means they are still affordable for the majority of serious picture collectors," she said.

Both Christie's and Sotheby's pulled their dedicated Scottish sales at the height of the recession in 2009.