Although this blog is not about the country's economic issues, it's impossible to ignore the financial roller coaster we're currently experiencing. What does this all mean to the collector car market?
Obviously, there's no definitive answer to that question but we can look at history. The last time the stock market took such a great tumble in 1987, investors moved to commodities in a very big way. In addition to traditional investments such as gold, tangible items such as art, antiques and collector cars became very popular. In fact, the collector car market began an unprecedented rise which continued for three years until the investment community regained full interest in stocks.
Crashing like the Dow: former multi-million dollar muscle cars.
The world is different today than it was twenty years ago, so I'm not suggesting that this will be a replay of that heyday period. Having said that, gold values have spiked and other commodities are sure to follow. My belief is that "blue chip" collectible cars will continue to grow significantly in value and demand throughout this period. On the flipside, more common collector cars (high production, poor quality, etc.) will suffer. As in all markets, what someone paid for a car will have no bearing in its current or future value. A perfect example of this is the decline of the muscle car market which was artificially hyped by the various auction firms. Stick with the universally regarded important collector cars and great original cars and not only will your investment be safe, you'll have fun at the same time.
All of the above is strictly my opinion and should not be construed as financial advice. Please feel free to post your comments and opinions on this very topical issue.