Investment means the commitment of capital in order to augment its value over a period of time. Investments can be either tangible (from Latin tangere, "to touch") or intangible.

Since the 1970's the Stock Market is no longer as certain as it once was. More people have been investing in alternative forms of investment for a more balanced portfolio. These alternatives have included tangibles such as real estate, gems, art, antiques, and Oriental Rugs. The one factor unique to tangible investments is that the owner has the ability to derive pleasure from the investment, for example jewels, furniture, paintings, or rugs.

Over the last twenty years, rugs show all the signs of a solid investment: a steady rise in price accomapnied by an increased demand and a dimishing supply. By this definition even modern rugs can be considered an investment. For example, since the embargo against Iran in the 1970's, even modern Persian rugs in the US have increased in value substantially.

When a business purchases a rug it can be considered a business expense like purchasing a desk and it also depreciates and can be deducted accordingly. When rugs are purchased for personal use they are not taxed as a business gain like other investments.

According to world renowned rug expert Parvis Nemati, the US is the best place to buy rugs. His reasoning is that many pieces come with refugees over the years and a great many rugs came to the US after the Second World War. Then in the 1960's and 70's there were many sales of substantial collections of family heirlooms. If you wish to become an investor in Oriental Rugs then Mr. Nemati's book, "Rugs as an Investment" should be your first investment.

The value of an Oriental Rug is determined by the same factors that determine the value of any work of art: authenticity, rarity, quality and condition. The determining factor for price is based on what the market will bear. An example of these factors is the $72 million Van Gough painting purchased by a Japanese corporation.

As an investment, a Persian rug is considered "property with cash value" - similar to gold, gems, and jewlery. Rugs increase in value with age.

In the year 2000, the lifting of the ban on the (wholesale) importing of Iranian rugs to the US was met with a new enthusiasm by rug buyers and investors. For the first time in over two decades there is a good selection of fine handmade Persian rugs available at at reasonable prices.

Like all art, the Oriental Rug purchase decision you make, be it a modern, old, or antique, should be based on your personal liking of the rug, not just the dollars involved, and a good time to start investing is now.