Ferraris, Bentleys soar in value as gold price sinks

LONDON Sat Sep 7, 2013 2:52pm IST

1 of 2. The radiator of a 1931 Bugatti Type 49 Cabriolet by Beutler car is pictured during an auction at the Oldtimer Galerie in the village of Toffen near Bern May 8, 2010.

Credit: Reuters/Arnd Wiegmann

Related Topics

Stocks

   

LONDON (Reuters) - Classic cars such as Ferraris, Bugattis and Bentleys soared by 28 percent in value in the year to June, outstripping gold, art and luxury London property thanks to rising demand from wealthy Asians.

Property consultancy Knight Frank, which publishes an index tracking the performance of luxury goods, said the world's wealthy were putting more money into tangible items that they could enjoy as the world economy looks to be recovering.

In July, a rare 1954 Mercedes-Benz W196 in which five-time Formula 1 World Champion driver Juan Manuel Fangio of Argentina won two grands prix, was sold at auction for 19.6 million pounds, making it the most expensive car ever sold at auction.

"It's an asset class that's very rare and it's very aspirational," said Andrew Shirley, editor of the report. "A lot of Asian high net worth individuals have acquired classic cars...They keep them in their garage in the UK or Europe and they come over and drive them in rallies."

This is in stark contrast to gold, seen as a safe haven investment in difficult periods, whose value has slumped by 23 percent over the same period following a 12-year bull run.

"The thing about gold is that it's tangible in the sense it's a physical thing but there's no great enjoyment to be had from gold...Whereas a classic car, it's still a safe haven play but it's something you're going to enjoy," Shirley said.

After classic cars, the next biggest gainers in the index were coins and stamps, up 9 and 7 percent respectively. Art, which had surged in value in the run-up to the credit crunch, fell 6 percent over the period as buyers become more cautious and selective, he said.

(Reporting by Brenda Goh; Editing by Mark Trevelyan)

FILED UNDER:

Religion and Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage