Over the past few years, I have urged HNW clients to consider alternative investments, including collector automobiles (Most recently, here).
I even mentioned it on Yahoo’s Tech Ticker (whereis that link?) last year, which led to some jeers.
As it turns out, that advice was pretty good. Here’s Bloomberg:
“Collectible cars have outperformed stocks, at least in the past four years, according to the Hagerty’s Cars That Matter “Blue Chip” Index, compiled by auto appraiser David Kinney of Great Falls, Virginia. The index, which contains the estimated values of 25 of the most popular collectible autos, increased more than 61 percent from September 2006, when it started, to the end of July.
That compares with a 16 percent loss in the Standard & Poor’s 500 Index. The 1958 Ferrari 250 GT California Spyder LWB gained 131 percent in that period to an estimated value of $3.3 million, according to the HCTM index . . .
Seeking Hard Assets: Today, with the stock market in the doldrums, investors seeking hard assets are turning to vintage cars — often for more than $1 million, says Keith Martin, publisher of Sports Car Market magazine in Portland”>
Now, I have a new excuse to go upgrade the sheet metal in my garage . . . I have an old 560 SL, which is worth about double what I paid for it — but about 10% less than I have put into it over the past 5 years.
Counter-Cyclical Spending during recessions (March 17th, 2010)
Alternative Investments: Antique Autos (June 6th, 2005)
Investment “Vehicles” Redefined (September 18th, 2004)
Bugattis Sell for `Crazy Money’ as Classic Cars Beat S&P 500
Bloomberg, Aug. 25 2010