I’m inspired to write on this subject as I have watched the gyrations of the stock market over the past year. I have always felt that high-quality antique oriental rugs are a very safe place to park your money, and my belief in their long-term value remains unshaken. If you plan to live with beautiful rugs for the rest of your life, once you’ve made the investment antique oriental rugs are “the gifts that keep on giving.” If you purchase a rug from a reputable dealer who knows the market and sells things at an appropriate price, the rugs in your collection will be likely to increase in value. As an added bonus, the dividend a great rug pays is the enjoyment of beauty that you get every day you cast your eyes on it.

Fachralo Kazak, Caucasus, Mid Nineteenth Century (5’ x 8’). A village rug displaying great color and drawing of design. Image courtesy Peter Pap Oriental Rugs.

Rugs have a history of appreciating in value over time. For this reason, I always advise my clients to take the long view, much as they would with a blue-chip stock. The most significant appreciation takes place over the span of a generation. Rugs bought in the early 20th century realized dramatic gains when they re-entered the market in the 1960s and 1970s. Similarly, the “right” rugs bought in the 1960s and 1970s are worth a great deal more today. People who bought rugs during those years had the advantage of obtaining wonderful antique pieces while the market’s prices were very low; consequently, rugs woven with great color and traditional use of design, as opposed to the rugs that were woven to suit western taste, have appreciated dramatically.

Fereghan Sarouk, Persia, Third Quarter of the Nineteenth Century (14’ x 19’). A great example of early workshop production that was artistic and not heavily influenced by western taste. Image courtesy Peter Pap Oriental Rugs.

Of course, as with investing in the stock market, there are no guarantees, even in a stable economy. Not all rugs are “right,” and many rugs have not appreciated at all (worse yet, some have depreciated!). That’s why it is essential to buy the best rug you can afford and to buy it only from a reputable dealer.

So, what steps can you take to ensure that you buy the right rug, at the right price, at the right time (the three keys to successful long-term investing in any commodity)?

1. Buy only from a reputable, established dealer, and be wary of buying at auction. A rug or an antique bought from a conscientious dealer can almost always be traded back for a full credit if it has been properly maintained. This gives you the ability to “trade up” as your tastes change. More importantly, rugs purchased from established dealers come with a guarantee as to authenticity and condition, while most rugs purchased at auction are sold “as is,” with no guarantees.

2. Think long term. Antique oriental rugs are not primarily valued for their liquidity. Rugs rarely appreciate in the short term, but if you are forced to sell, the reputable dealer who sold you the rug should be willing to either buy it back or help you re-sell it.

3. Buy rugs appropriate to the way in which you want to use them, and always follow care recommendations. A good rug will last several lifetimes if it’s properly cared for. For example, we advise clients as to which types of rugs are best for particularly heavy traffic patterns so that there are no surprises down the road. Some rugs are densely knotted and are therefore very durable and well-suited for busy traffic areas. Others, because of their weave, or because they have already sustained wear over their lifetime, are more suited to seating areas or bedrooms. Your taste in furnishings, the size of your space and the lighting in a room all affect your decision. Is your interior traditional, or more modern in its aesthetic? Do you prefer bold, graphic patterns, or are you more drawn to intricate designs? Some rugs will brighten a room; others suit a more muted interior. There are rugs to suit everyone’s taste and many interiors.

4. Buy “against the curve.” Investing in rugs that are not just about current fashion increases the likelihood that your rugs will hold their value and potentially appreciate over the long term. In my opinion a number of rug types are currently undervalued, including antique kilims, tribal rugs, village rugs, and rugs with bold designs and saturated color. Many of these rugs are out-of-favor with current interior design trends and are therefore undervalued. Good rugs are like classic clothes; fashions may come and go, but good quality and great design will always stand the test of time.

Sarouk, Persia, Early Twentieth Century. A commercial workshop rug designed for the Western market and an example of a type that has not done as well from an investment standpoint. Image courtesy Peter Pap Oriental Rugs.

Following these tips does not guarantee that your rugs will be worth more when you sell them, but it does improve the odds for realizing a gain on your investment. And in the meantime, you have exceptionally beautiful objects to enjoy over and over again.