I would not display it inside a frame. It's a wall hanging.

http://www.rugrag.com/post/How-Can-I-Display-my-Rug-as-a-Wall-Hanging.aspx

http://blog.rugknots.com/hang-an-oriental-rug-without-damage/

You think so? I heard that framing rugs/textiles makes it look much better? I tried superimposing it. What do you think?

I vote for wall hanging as well. And I own a lot of carpets and carpet-like objects. Also, I wouldn't hang the rug under an A/C unit.

From what I've read, just being too close to a heater or an a/c unit can damage the rug. The silk or, in your case wool, don't always take kindly to radical temperature changes. And while it's true that rugs can be washed, they also have to be dried very quickly and very thoroughly or mildew sets in. A slight leak from an a/c unit could cause mildew before you're even aware it's happened.

One option for hanging is to sew velcro onto the back, then attach velcro to the wall. Another is to sew a fabric tube to the back of the rug, and run a metal or wood rod through it.

Here's a good overview:

http://blog.rugknots.com/hang-an-oriental-rug-without-damage/

Hang it on a different wall. It is too much the same shape and size as the window in the spot you've chosen.. Over the console would be better, and avoid the competition with the AC. UN framed. Vintage 1970 is an aged rug, but not an antique. Just hang and enjoy.

I gave it a second thought. I'm now considering to hang the rug upstairs where I can dedicate one spot light to it. What do you think? I think it has more space to enjoy hung here.

However, I think that the rug framed makes it more finished than unframed. Still think otherwise?

I'm kind of going for a St Frank look

http://shop.stfrank.com/products/lakai-trim-ix

I dropped by a drapery shop today to get some linen for the mat. Perhaps I'm overthinking my choice, but I went with a pale green with some murky yellows. The colour sort of replicates the background of the Chinese silk painting in the background. At that time, I also felt that going with the beige/duck egg colours didn't bring out the colour of the fringe as it was too similar, and the entire living space would also choke of browns.

Should I have gone with the conventional and safer beige?

Just to give you an idea of what I envisage the other side of the room will look like.

I'll be using beige for the mat fabrics for the other art pieces.

I'm for a wall hanging. Not only will it look more organic, but the rug is quite large and adding a frame will likely make it over-scaled for your house. I also think that the lighter colored rug would work much better in a frame. Dark and large, your rug has quite a bit of visual weight and would look best centered in a room.

I'm stuck between the velvet blue or velvet green. Both look nice with the rug. The velvet gives off a very different colour when viewed from different angles. What do you think. Green or blue?
I've superimposed images of the greens and blues based off photos that I've taken at different angles.
Note: all photos of the blues are of the same velvet blue. All photos of the greens are of the same velvet green.

The blues connect to the overlayed rug, the hung rug and the armchairs and that's about it. The greens connect with the rusted iron rods, the throw pillows, some parts of the overlayed rug, the planter, and the art work behind.

I like the green better. Though I also like the light colored background that accentuated the jagged edges of the piece. I agree with you about the framing. The wall hanging presentation seems more like the rug is being used for decoration. By framing it you elevate it to "art" and draw more attention to the art of the textile itself. Just my opinion but looking at your choices and the rest of your house you have a great eye and should trust your instincts.

I agree the green looks better.

I like it framed.

I like it framed too.