Handmade Rugs are a sound investment.
The value of a rug is determined by the same factors that set the value of any work of art: authenticity, rarity, quality & condition. Like diamonds — the bigger they get, so do their prices!
What are the most sought after Rugs?
Some of the most sought-after Persian and Oriental rugs are still made in Iranian cities such as Qom, Nain, Isfahan and Tabriz. Even to untrained eyes, these fine rugs are very different in both the way they look and feel, compared to the thicker, more rugged tribal types typically found in Afghanistan, Uzbekistan and other parts of central and South Asia.
Over the past two to three decades, such fine rugs have seen their value appreciate due to stronger demand. This situation is compounded partly by an embargo against Iran during the 1980s and 1990s, and partly by actions by the Iranian government to control the supply. “This was particularly accelerated in the 1990s when the Iranian government passed a law limiting the number of carpets exported out of the country each year, ” says Alan Foo, General Manager of The Orientalist, the largest carpet retailer in Singapore.
New sanctions by the U.S. against Iran over its nuclear program came into effect recently, including another embargo on rugs. What will undoubtedly apply upward pressure on prices, means rugs even a few months old will appreciate in value.