Classic cars as a viable investment choice

With statistics showing that classic car prices actually outperformed equities and gold last year, more investors are now looking at well-kept vehicles as an alternative asset class for their private wealth.

That is according to the Telegraph, which highlights figures from the Historic Automobile Group International showing that the best classic cars typically rose in value by 20 per cent during 2011, while gold prices rose by just half that amount – ten per cent.

With property prices floundering and returns falling on cash and equity, it suggested that alternative investments have seen renewed interest following the recession.

As well as classic cars, fine wines, rare stamps, art and antiques are all being sought after, because they tend tobe relatively rare and possess an intrinsic value that makes them more appealing during times when financial investments appear so volatile.

However, the newspaper's Emma Simpson suggested that investors should make sure they properly differentiate between conventional and alternative assets.

"Whether you are talking about Morgans, Margaux or Manets, the prices of individual items can be dictated by fashion, which can work against the investor," she warned, while also highlighting how damage can lead to depreciation.

Earlier this year, the New York Post suggested that coloured diamonds also represent an attractive investment opportunity.

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