Coutts Index

UK's City A M is reporting on the Coutts Index for luxury goods, which shows classic cars leading the passion investment category, up over 330% since 2005 and old master paintings the biggest loser with a negative 42% loss in the same time period.


City AM reports

Splashing some cash on a classic car isn't just good for your image, it's actually the best asset in which to invest in terms of returns when it comes to desirable items.

That's according to banker to the Queen, Coutts, which has compiled an annual list of the best performing assets, taking into account such dream items as luxury homes and fine art.

Classic cars were found to have dropped in the short term – 10.4 per cent in 2016 – but over the past 12 years they are the best performing, rising in value by more than 300 per cent.

“Provenance and rarity continue to be the two factors that are pushing prices higher," said Coutts managing director Mohammad Kamal Syed.

"Classic cars have provided the healthiest returns since 2005, with average prices rising more than fourfold. However, after increasing rapidly in 2013 and 2014, price returns for Classic Cars fell in both 2015 and 2016. Moreover, this reflected falling auction prices for nearly all models in the index. Prices at the very top end of the market remain robust."

So-called passion assets have risen by 1.2 per cent in 2016 and nearly 77 per cent since 2005.

Coins were the next best performer, followed by fine wine and jewellery. But property is still a good bet, with returns since 2005 estimated at 97 per cent for billionaire pads and 39 per cent for "leisure" properties such as second and holiday homes.

As for paintings, probably best to leave the old masters hanging: their value has declined by 42 per cent

Source: City A.M.