Investing in vintage sports cars was named the best investment


As of March 31, 2016 investment in vintage cars showed a yield of 467% over ten years and 161 for five years, the Financial Times reports, citing data from Knight Frank Luxury Investment Index. The publication notes that, according to Preqin, hedge funds on average over the same period showed a yield of 7.83% and 4.75%, respectively.

Over the past 12 months, private investment funds showed higher returns than alternative investments, says the FT, but the average over the past year, they were earning 2% less, whereas the price of classic cars has increased by 17%.

The value of a vintage sports car is supported by the records of auction sales. In February 1957 Ferrari 335 Sport year of production was sold for £24.7 million, which was the highest amount for a racing car. The FT quotes several prices for this class of car. So, Jaguar XK120 °C C-Type of 1953, estimated at £8.5 million and a Mercedes-Benz W196 Grand Prix also 1953 of £18.8 million

Experts warn that offer on the market of vintage cars of prestigious brands has almost caught up with demand and the rate of growth of profitability from investing in them started to slow down. In particular, during the year, the prices of luxury cars only increased by 1.06%.

Investment in other luxury goods also showed a high yield, notes the FT. Wine in ten years rose by 245%, coins for five years rose by 73%. The cost of art for ten years increased by 206%, but in the last five years, the yield on investments in this category amounted to only 16%.