Fruits of Passion

Click for interactive chart
Source: Economist



I love that classic car investing has trounced Art, Coins, Wine and Equities !



Category: Consumer Spending

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13 Responses to “Luxury Item Investing Returns”

  1. Singmaster says:

    Classic cars chart looks like an old AAPL chart, like an old GLD chart. What sort of standard deviation is that anyway? If a Ferrari NART has a pre-auction estimate of 15-17m and it goes for 27.5m, that feels bubble-like to me. I would not being buying a classic car now. I’d wait for a reversion to the mean.
    Plus as the article reads, these are cars bought at auction. It misses the private sales where losses are taken quietly.
    The NART is gorgeous though.

  2. Singmaster says:

    Are there 10 left? No expert on this. I thought 10 were built. I thought Steve McQueen squished his, that he tried to buy the one that sold over the weekend. At least, that was the buzz around here.

  3. BennyProfane says:

    You have to factor in the cost of owning one of those cars, too. Especially an old Ferrari. A good mechanic can just smile at you and ask for the moon, because you ain’t going to Charlie’s foreign repair down the road, and it should be coddled in a totally climate controlled and secure garage. Probably have to hire a sculptor to do bodywork. Oh, wait, and then there’s insurance……..

    Ask a few rich Japanese who bubbled up the market in the late 80s about when to buy.

  4. rd says:

    Classic cars are probably much harder to forge than many of the other collectibles.

    My understanding is that there appears to be a lot more of classic French wines than were ever bottled at the wineries.

    Art and the antiquities markets are rife with forgeries although new technologies are getting better at picking them up.

  5. jeff in indy says:

    my 2 oldest sons are highly talented guitarists (the oldest is self-taught classical guitarist) and collectors. my favorite part: listening to them play. priceless…

  6. Frwip says:

    Yes, but what is the cost of carry for classic cars?

    All those gallons of oil to pour down the engine, all those square feet of garage space, all those mechanics to pay, all those valves to reseat and those carburetors to clean up, those yards of hoods to polish and all those springs to sprung …

    Oh wait! You mean those cars are fun on top of being gorgeous?

  7. Francisco Bandres de Abarca says:

    Yeah, I can see that this chart is going to foster a few conversations tonight that go something like this: “Look honey! It’s like I’ve been tellin’ ya, letting me buy that [Les Paul w/tiger stripe maple top/Taylor acoustic/Continental Mark II/etcetera, etcetera] would be a great idea!”

  8. Arequipa01 says:

    Consider looking into the classic car market in Argentina. Deals abound.

  9. Diablo says:

    Looking at prices for Ferrari Dinos nowadays makes my stomach churn. I was considering picking one up for $40K some years ago but people were saying theyre the red-headed stepchild of ferraris and wont be worth anything. Now theyre approaching 500K. sigh.

    FYI; Testarossas can be had for 50K now :D