Personally I think very rare cars, art, and other collectables will keep going up. I think a lot of other than very rare cars, art and collectables are due for a bit of a fall. That said I personally have gotten a lot more enjoyment from owning cars and art that owning US 2 year treasuries.
Having been involved with collectibles for 50 years now--I have heard how prices are too high, the sky is going to fall, etc. for a LONG TIME. I am having a great time with my cars. If they drop in price, so be it. For all the others who keep waiting for prices to fall, let them keep talking. If they are waiting for a bargain, at the end of the day--they will have s house full or bargains!! I have had a much better life reaching for good things which I now have the pleasure of enjoying. Think of what I recently heard from a coin dealer & Ferrari owner: "I have more Summers behind me than in front of me" I think this says it all. Ken Goldmamn
Right now i observe ever escalating prices which are coaxing more longtime owners to sell, so more cars on the market. Maybe we are seeing guys who've used up the majority of their summers thinking, 'well it's now or never, damn the price I want a GTB while I'm still able to enjoy it?' Bubble behavior is when cars turn over quickly. Do we see cars getting flipped yet?
The problem is that many are entering this buying "so called" collectibles with absolutely no understanding of what they are buying. A Ferrari can go bad and cost you a lot of money just sitting in your garage. That doesn't happen with a piece of art. Those that are getting into this without any appreciation of what they are buying will be the first to leave, causing the market to crash
In another thread, someone says 0704TR has been sold for $30m. Has anyone else heard this? $30m is GTO money.
$30m may have been GTO money last year, but not now it seems. See here: http://www.ferrarichat.com/forum/ferrari-discussion-not-model-specific/411755-250-gto-sale.html
Not yet, bubble can also be when money that has nothing to do with cars comes into the space purely looking for areturn. A GTO parked in a garage is not going to dereciate through degradation, hell even if it burns to the ground the dtata plate is worth 29 mill plus another 1 mill to recreate, er I mean restore the car.
True but great and rare collectable are going much higher. The key is buying what you Love and not looking back. I regret nothing I've collected but do wish I had the money to buy that 250 GTO and a trailer for 6.5K .
You sir have collected with taste. The boot and Dino are but two very good examples. Today many collect just with money and buying names. Not many great car collectors left, many hoarders though.
Do you actually know anyone who has done this? I personally have never met a person buying a vintage Ferrari that isn't a gear head.
Many cars are getting shaken loose by the rise in prices. I suspect that some of the sales are by owners who no longer get to enjoy their cars as they once did, have significant appreciation in the cars and are doing a bit of estate planning. Changing of the guard so to speak. How long the new buyers will hang on is, as it always has been, an individual matter.
The question becomes what is the difference between rare and very rare. I guess the market will decide. Back when I was shopping for a Ferrari in my price range the Dino and the Boxer were equal. Not too long ago. For me comparing a 6 cyl "Not-a-Ferrari" and The hand built 12 cyl supercar of its era was a no brainier. Is the moral of the story; never trust your brain ? Too funny. And just wait till the Fed interest rates creep up. Long term treasuries will become anything but fun.
It is a bit irrelevant to the discussion but talking about collection and prices, i would like to mention the last issue of Octane Magazine which it is talks collections (Ralph Lauren's etc), about values, if it is correct to restore a car or leave as it has etc.. (sorry for the interruption) Best
Let's hope that the speculators throw huge money into some high quality restorations of all the GTE's before they come down. George
it is normal course in business to take money off the table... especially with the recent gains the market has shown, long term owners may find it prudent to make adjustments...these sales may provide a base for future rallies in value... in constant values of currency the current values are not out of line with the buying power they respresent...
There was a piece on one of the morning shows this morning talking about how good an investments classic cars have been with advice on what to buy, graphs on how they have outperformed many other more classic investments... They also failed to mention that you have to properly store a classic car as well as maintain it, even if you don't drive it, or it will depreciate... Joe Kennedy, claimed he sold all his stock when he got a share tip from the shoe-shine boy, the feeling being that when everybody thinks it's a great time to get in, it's time to sell... When the mainstream media starts touting classic cars as an investment it may well be time to exit....
Guy was shady to the extreme.....history, books & articles have shown the light of day.. HOWEVER, your main point is spot-on.....recall the DAY-TRADER craze?? Everyone and I mean EVERYONE had a "hot-stock tip"? so now with cars; ...mainstream media..number of car shows on T.V. (chasing/finding/selling/trading etc etc.) with the illusion of "easy-money" I felt this especially when CNBC, primarily a FINANCIAL NEWS channel... came out with their ridiculous car-trading show.... On to Scottsdale!! Jack
Yup, when the mainstream TV started having shows like "flip this house" and stuff like that, you knew the real estate bubble was about to pop. Other shows like "what's my car worth" and, as you said, all the shows about chasing, finding, flipping etc., will fish in the late arrivals who will fund the exit of the early arrivers... Bubbles are like Ponzi schemes, the ones who get in early and out early make a lot, those that get in late, because it "looks like a sure thing", get burned.
