Tangible assets like art, wine, stamps, coins and other antiques have always been an option for investors seeking diversification. They’ve been especially popular in low interest rate environments.
The market for vintage cars is booming driven by wealthy investors who are looking for more unusual places to invest their money.
“A new investment analysis of collectibles shows that classic cars are vastly outperforming the art market and were the top-performing collectible investment over the past year. For the 12 months ended in October 2014, cars as a category posted returns of 25 percent while art was up only 5 percent.
Cars beat art over the longer-term as well, clocking gains of 111 percent over five years (compared with art at 17 percent) and gaining 469 percent over 10 years (compared with 226 percent for art).
Overall, investing in high-end collectibles has been more lucrative than investing in stocks. Over the past 10 years, the Knight Frank Luxury Index (which tracks collectibles from cars and art to stamps, wine, coins and furniture) is up 182 percent while Dow Jones is up 62 percent”.