You'll never guess the new investment trend.
Almost out of nowhere did it become an investment thing. Buying up classic cars, whether you're a car guy/girl or not, became quite popular starting around a decade ago for those looking for a relatively safe, and non-stock market investment. Remember, this was around the time when the real estate market crashed. And for 10 years or so, many benefitted from classic car investments. But a new report from The Guardian indicates that trend is coming to an end.
The fall in value of classic cars dropped by 10.4 percent last year, and that's a very significant amount for investors. Yes, we have been seeing plenty of rare exotics go for huge and record-breaking amounts at auctions, even as early as a few weeks ago at Pebble Beach, but the overall market trend paints a different picture. But if classic cars are losing their values, what's taking their place? Photography. Yes, seriously. For example, a photograph of visitors to the Art Institute of Chicago in 1990 by Thomas Struth (a famous German photographer famous for museum photographs) recently sold for $777,080 at auction. Another hot new investment this past year was rare musical instruments, as they rose in value by 16.4 percent over last year.
But also bear in mind that the specific classic cars in focus here, according to the Coutts Bank index, all had to sell for more than $500,000 and had to have been sold at least 10 times at auction in order to establish a price timeline. So, which cars are we talking about? Of the ten on the list, seven are Ferraris. The rest were a Mercedes 300 SL, a Shelby Cobra 289, and an Aston Martin DB5.