I have long argued that the antiques and collectibles trade no longer belongs to the average collector or enthusiast. Auction companies and third-party grading companies now control these markets with an iron fist. The collecting categories that these companies choose to promote vastly influence both collectors and investors tastes, who now view these markets as a valid alternate asset class. Over the course of the last decade more capital than ever before is flowing freely through the antiques and collectibles trade. In fact, according to an article that premiered on the website cllct (www.cllct.com), the collectibles trade is estimated to grow to a whopping $1 trillion by the year 2033. If this number is to be believed, given that the current value of the collectibles trade is valued at about $600 billion, this number represents a potential growth rate of about 40 percent in the next nine years. Make no mistake, I do not dispute these findings. Speculating and investing in antiques and collectibles used to be done by a select few diehard enthusiasts who knew the risks as well as the treasures they were attempting to profit from. Today, thanks in part to online collecting forums and social media, investing in alternative assets like antiques and collectibles is quickly becoming the norm. And while I do think way too many speculators and investors are taking on an enormous level of risk by choosing to go all in on this asset class, I am just as concerned as to what is happening behind the closed fancy ivory doors at high-profile auction companies and third-party grading conglomerates. A troubling development that is occurring at present, which corresponds to the massive amounts of money flowing into some of these markets, is the rise of private equity that is slowly starting to consume auction houses and grading companies at a feverish pace never before seen. There was once a time in the antiques and collectibles trade where at least some of the top tier firms that cater to these markets were publicly traded enterprises. Case in point, there was once a time when Christies, Sothebys, and the Collectors Universe were all publicly traded companies required by the SEC to publish quarterly and yearly financial reports. These reports, known as either the 10-Q quarterly report or the 10-K report, provided valuable insight and transparency to not only the companys shareholders, but also their customers. Sadly, today, thanks in part to hedge funds and private equity companies buying up a lot of auction houses and grading conglomerates that cater to the antiques and collectibles trade, this level of transparency is sorely lacking at a time when individual investors are seeing these markets as a viable alternative asset class on par with financial investments like mutual funds, ETFs, stocks, and bonds. In all actuality, nothing can be further from the truth. If you think Wall Street is risky, at the very least, financial assets are highly regulated. On the other side of the proverbial coin, the antiques and collectibles trade is comparable to the Wild, Wild West where caveat emptor (aka let the buyer beware) is the law of the land. Today, as I write this article, there are virtually no publicly traded auction houses or third-party grading conglomerates left. Sothebys and Christies are back in private hands. Heritage Auctions, which has made massive inroads into becoming one of the premier auction houses catering to investment grade collectibles, is also in private hands. Meanwhile, grading conglomerates like the Certified Collectibles Group in Sarasota, Fla., that grade everything from paper money to coins to comic books to video games, are completely controlled by private equity. Even the Collectible Grading Authority out of Norcross, Ga., which controls the premier toy and action figure grading company, AFA (Action Figure Authority), is controlled by private equity. Now obviously, private ownership isnt a bad thing. After all, this is America and America thrives on capitalism. However, when we have an extremely unregulated industry which is being looked at as a rising alternate asset class that is solely controlled by private equity, I think at some point we have to ask the question: Is this inherently sustainable and for how long? To my critics, I am not directly criticizing private ownership. Obviously, there are hundreds if not thousands of smaller local and even regional auction houses that are owned and operated by entrepreneurs and small independent corporations. What I am asking is, given the amount of financial capital flowing into these markets and these markets being seen as an investment, shouldnt some level of regulation or, at the very least, transparency, be warranted? After all, we have seen massive amounts of alleged market manipulation occurring behind the scenes from the epic graded coin bubble of the late 1980s to proposed allegations of price fixing levied at some of the most prolific auction houses in the trade. Given these risks and the fact that this market could become worth $1 trillion in the not distant future, one has to ask who exactly is looking out for the little guy. And if you think this question is controversial in nature, just wait until you hear some of my proposed solutions. We are already seeing the effects as to how this is playing out over the long term. I often lament that when billionaires invest in the antiques and collectibles trade they do not always go after $100 million dollar plus paintings or the dinosaur fossil hedge fund billionaire Ken Griffin just bought for close to $50 million. Now they are taking aim at owning the auction companies and the grading conglomerates that promote a lot of the collectibles that less wealthy collectors have previously been able to acquire. And therein lies the problem. There is absolutely no regulation or transparency in these markets. Anyone operating with an investment mindset in these markets needs to use caution as a result. Its just a thought. Shawn Surmick has been an avid collector since the age of 12. He currently resides in his hometown of Boyertown, Pa., and is a passionate collector of antiques and collectibles. His articles focus on various topics affecting the marketplace.