Classic cars and wine in dead heat at top of Knight Frank Luxury investment Index

The average value of investment-grade classic cars and wine has increased by 8% over the past year, according to the Knight Frank Luxury Investment Index.
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Wine, however, is on a bit of an upwards journey, while the market for classic cars has dropped down a gear or two.

KFLII performance by asset class (to Q1 2016*)

An 8% rise is not to be sniffed at, but the classic car market has regularly been delivering double-digit annual returns with growth totaling a staggering 458% over the past 10 years (to Q2 2016).

After such a strong performance the market seems to be pausing for breath. However, collectors are still prepared to dig deep when rare cars with a great provenance and in authentic condition become available.

Records have tumbled in 2016.

At the Monterey sales a 1962 Shelby Cobra ($13.8m) became the most expensive US car to sell at auction, while the  1955 Jaguar D-Type pictured below ($21.8m) secured the equivalent record for a British marque.

In Paris earlier in the year, a 1957 Ferrari 335 Sport (€32m) took the overall crown, in sterling and euro terms at least.

Wine, meanwhile, seems to have well and truly found its feet again after suffering a bit of a blow a few years ago when the Chinese Bordeaux bubble went pop with all the force of a well-shaken Champagne cork.

Read the full report, which includes a special focus on the US classic car market and an interview with legendary racing driver Mario Andretti.

Shelby and Jaguar images courtesy of RM Sotheby’s