The past few years have seen the price of an ounce of gold skyrocket, starting a 21st century gold rush according to some analysts. But the price of gold has softened, and some worry it may even return to pre-recession levels, costing investors billions of dollars. There is another option for the savvy investor though: classic cars.
The Washington Post reports that while the price of many collectibles has sunk in the wake of the Great Recession, classic car prices have more than doubled in the past five years. Average transaction prices are up 28% this year alone.
Prices are being driven by wealthy Asian investors seeking to snap up limited-quantity investors. Real estate firm Knight Frank released a chart tracking what rich people are buying, and classic “blue chip” cars from the 1950s, 1960s, and 1970s are at the top of the list. Unlike antique furniture, which has suffered from oversaturation, classic cars are in very limited supplies, leading to epic bidding wars. Meanwhile, the price of gold has sunk to 2009 prices, and doesn’t show any signs of slowing.
These two cars drew record-breaking bids this year, helping drive up the price of classic cars.
This past weekend for example saw a record-breaking $3.2 million high bid for a famous drag racing 1967 Corvette Stingray Convertible with the epic L88 engine package. The original George Barris Batmobile sold for over $4.6 million earlier this year, and a unique ‘67 Shelby Super Snake Mustang sold for a record-setting $1.3 million. Even during the wild days prior to the Great Recession, rare were the cars that broke $1 million at auction; now it seems like there is a new one to report on every month. What car do you wish you could invest in? Tell us below in the comments section.