by Mike -
There have been several investment funds created lately for the purpose of investing in classic cars.
This is a very bad idea for those of us who own classic cars as drivers, race cars, show cars or just because we love them as objects of art. When professional investors get involved they think of the investment product as a commodity. Their goal is to buy low and sell high with profit the only purpose.
This will artificially increase the price of these classic cars. You may think this is good if you are selling but you will not like it if you are buying. But even if you are selling these professional investors want to buy low, remember?
I do not think of my special cars as commodities and I think this is not good for the classic car hobby.
Let’s not forget what professional investors have done to the world wide economy and to oil prices, for example.
Classic car prices should be set by real market conditions based on supply and demand of collectors and car lovers, not by professional money managers who are focused on profits only.
When I sell one of my cars I want the highest price that another collector will pay and when I buy a car I want to pay the lowest price that the seller will accept. I do not want these prices set by professional money managers.
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