Heritage usually works with the collectors themselves, after assuring the authenticity of their collection. Prendergast also works with financial advisors who are handling estate sales for families or who are having items appraised for various purposes in the hopes of establishing a long-term relationship that can weather any market.
"The years 2006 and 2007 were heady times for antiques and art, but then many people took a step back in 2008 to the middle of 2009 and were not participating as much," Prendergast says. "But art, collectibles and coins have a more consistent growth record. People want to have tangible assets because they were gun-shy of stocks. The price of gold attests to that fact and has brought even more attention to the strong rare coin market in particular.
"The collectibles market is a nontraditional area of investment, but it is looked on by many as a significant part of their portfolio," he adds. "The buyer sees it as a good potential that will hold its value, so it can be both fun and profitable."