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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Adani Project

Adani Project

Australia approves Adani's $16 bln Carmichael coal project  Full Article 

India-U.S. Talks

India-U.S. Talks

Kerry to woo Modi's India, but quick progress unlikely  Full Article 

Paring Debt

Paring Debt

Jaiprakash to sell hydro plants to Reliance Power  Full Article 

Nifty Falls

Nifty Falls

The broader index hits lowest in nearly a week on profit taking  Full Article 

Mideast Conflict

Mideast Conflict

U.N. Security Council calls for humanitarian ceasefire in Gaza  Full Article 

Market Eye

Market Eye

Foreign investors prefer Indian cyclicals, utilities - Macquarie  Full Article 

Debt Investment

Debt Investment

India's FII debt limit hike credit-positive, says Moody's  Full Article 

Reuters India Mobile

Reuters India Mobile

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