SAVERS tired of paltry returns from high street banks may put their money to more creative use by collecting antiques and memorabilia.

From whisky to Chinese art, investors with money in their pocket to spare are seeking new ways to enrich their lives with beautiful objects.

While novices are warned to tread carefully and do their homework before going on a spending spree, many enjoy the idea of putting their money into something they can hold in their hands or hang on their walls.

Judith Miller, author of Miller’s Antiques Handbook & Price Guide, says: “A lot of people feel it is not worth keeping money in a bank account when rates are so low and they may as well get the pleasure of owning something they love.”

Unfortunately there are no real indices tracking the value of different types of antiques, which makes the market much more difficult to monitor than other investments. The Antiques Collectors’ Club produces the Annual Furniture Index, but this is an area of the market that has performed particularly poorly in recent years. The index was first launched in 1968 and reached a high of 3,575 in 2002, but now stands at 2,149, down 67% from its peak and to a level not seen since in the 1980s, according to Antiques Trade Gazette.

But it is not all doom and gloom, as some types of antique have seen extraordinary growth. The value of the finest-quality jade has increased tenfold over the past decade or so, estimates suggest. Meanwhile, a chipped Yongzheng era (1722-1735) porcelain Chinese vase recently sold for £114,000 by a Carmarthen-based auction house, after dealers gave it an initial value of just £150.

Miller says: “Chinese works of art have seen a phenomenal increase in value, particularly porcelain and jade. Anything with a connection to the tsars of Russia is also hugely popular. Precious metal like silver has done incredibly well, for example vinaigrettes, the little scent bottles that people used to keep in case they were passing something foul-smelling in the street.”

But of course, the way to make money is generally to buy low and sell high, which is easier said than done. If you can spot an area of the market that is currently undervalued and have the patience to hold onto your assets until they come back into favour, you are in with a chance of making a profit.

Enjoyment can soften the blow of price falls

The rule of thumb in most cases is to collect things because they interest you rather than second guess the market and remember that any investment in collectibles is best considered as part of a broader portfolio.

If you have an interest in a specific area of collectibles, you may very well be able to bring your own insight into the area. However, like any investment portfolio, diversity is the key. Single items in very specialist areas leave one extremely open to the “faddy” nature of collectibles. Moreover, when these things are out of fashion, finding any kind of buyer can be well-nigh impossible. Of course, if it is an area that you love, you have the personal enjoyment of the item, which may well soften the blow!

Miller adds: “Brown furniture from the 19th century is seriously undervalued at the moment. When something hits the bottom it is normally a good time to buy, but you should look for a named maker and high-quality items. Solid mahogany furniture is under-priced and it will still be around in 100 years’ time, unlike the flat-pack furniture that many people fill their homes with. If you are new to collecting, buy from a good dealer and get a receipt that says exactly what it is. Be careful of buying off the internet."

Ivan Macquisten, former editor of Antiques Trade Gazette, who now runs his own media consultancy ImacQ, says the whisky market is proving incredibly popular, particularly with young collectors. As well as the established Scottish names, some of the top whiskies are coming out of Japan, Korea and even Taiwan.