Looking back over the past decade it is hard to ignore the tailwind that near-zero interest rates gave consumers in the US and in Europe in purchasing power terms. This in my view was the single biggest impetus in the search for alternative asset classes, especially luxury goods or so-called “assets of passion”. There wasn’t much incentive for investors to hold their cash in the bank or in developed market government bonds, and what better place to put excess money than in assets that can actually be enjoyed?

Within the luxury goods asset class, classic cars have done exceptionally well. For the decade ending December 2018, the Knight Frank luxury investment index has measured collectable cars as gaining 258% in US dollar terms, trumping the 10-year returns on watches, wine, jewellery, stamps and art. The only other investment in this sector that would have provided a better return is rare and collectable whisky, which gained 582% over the period. By comparison, if you’d inves...

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