October 22, 2011
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I’ll try to keep this brief. In the 1980’s classic car prices began to increase and entice investors in an unstable market. That brought out the cockroaches of the financial market world, THE SPECULATOR. They began trading and inflating with other peoples money until they crashed the classic car market. That was the past and we are all taught as children to learn from the past and to not repeat the mistakes of yesterday or you’ll wear the shameful, dumb ass badge. The following is a september 2011 report from the BBC:

“Over the last 30 years or so the value of classic cars has risen inexorably. Until recently the market was driven by enthusiasts who drove the cars as a hobby. The fact that the cars often rose in value was an unintentional side effect of what these connoisseurs call “automotive art”. However, as the economic outlook remains gloomy and the financial markets remain volatile, people are starting to invest more seriously in tangible assets like art, wine and classic cars. This perhaps accounts for the eye-watering transactions carried out here at Goodwood. On Friday, in a packed tent, Bonhams auctioneers sold a Rolls Royce Silver Ghost for £485,500, ($675,748) and a Ferrari 365 GTS/4 Daytona sold for £595,500 ($827,625.90). The Ferrari GT Spyder – a car once owned the radio DJ Chris Evans – could be bought in the 1960s for $94,000 (£60,000). Today, these cars sell for a reputed $7m.

The classic car market has been given a massive boost from the emerging markets. A few years ago wealthy Middle Eastern and Asian enthusiasts were buying flashy super-cars to flaunt their new found riches. But they soon realised that as impressive as cars like the Lamborghini Gallardo Coupe are, they can depreciate by as much as a $1,500 per week. So, they have started to buy classic cars – and in particular those manufactured in Britain.

You only have to meet some of the drivers at the Goodwood Revival to understand that much of the joy of investing in classic cars comes from restoring and running them. But a new hedge fund has been set up that has taken this hands-on involvement out of automotive investment. IGA Automobile was set up by ex-racing driver Ray Bellm. He says he has spent the last 30 years watching the value of rare cars rise and rise. The fund aims to buy $150m worth of some of the world’s most iconic cars in order to sell them on at a profit some years down the line. Among some of the cars Mr Bellm has his eye on is a Ferrari 250 GTO, an Aston Martin DB4 Zagato, and a McLaren F1. “We’ll be looking at the heritage, quantity and perception of the cars,” he says. The group hopes to attract sovereign wealth funds and ultra high-worth individuals, and is offering them a return of 15%. But Mr Bellm admits that the greatest weakness of the fund is that the investors won’t actually be able to drive the cars.” By Lucy Burton Business reporter, BBC News.

HERE WE GO AGAIN!!! Aaaaaaand here come the coked out wall street speculators to promise big gains and do it all again. But wait! This time it’s going to be different says the brilliant marketeer. Didn’t you say the same same thing the LAST time you left rehab. (FUN FACT studies have shown that money stimulates the same part of the brain aaaas, you guessed it COCAINE!) BOTH incidentally turn great people into A-holes. Don’t get me wrong though, I love money and I am a RAGING capitalist. I need $$$$ to buy cool cars, parts and petrol. On the bright side when they DO crash the classic automotive market, that Yenko Camaro 427 might be finally back in your price range.


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