Alternative Investment News Round-up: Tuesday 11th July

Classic Cars race ahead of other alternative assets


Classic cars are racing ahead of all other alternative investments, according to Knight Frank.

The agency’s latest Luxury Investment Index found that classic cars accelerated by 17 per cent in the months to Q1 2016, far ahead of their closest contender, wine (9 per cent), and third place rare coins (6 per cent).

Overall, the Knight Frank Luxury Investment Index increased by 5 per cent in the last 12 months to the end of March 2016, the lowest annual increase since the first quarter of 2010.

“Of the 10 asset classes we include in the Knight Luxury Investment Index (KFLII), classic cars arguably capture the imagination more than anything else. Not only has their performance in terms of price over the past decade been staggering, but the thrill of owning such visceral and often historic vehicles is hard to beat,” says Andrew Shirley, Editor of Knight Frank’s Wealth Report.

Commodities hold up well againts Brexit uncertainty

Commodities are “holding up well” against the uncertainty surrounding the UK’s Brexit vote, say traders.

The surprise vote for the UK to leave the European Union sent sterling plummeting against the euro and dollar. That kind of uncertainty has always proven a boost for gold’s appeal to investors seeking safe haven assets. Indeed, the precious metal’s value rose by more than 5 per cent in the 48 hours following the referendum result and reached a high it hasn’t seen since July 2014.

“On Friday last week gold jumped a massive $100, but profit-taking brought prices back to the $1,300 range. What is interesting about the rise in gold is that it pushed out of a predictable price range so we may see higher highs. Along with other precious metals, the fundamentals are providing a lot of support for gold,” EasyMarkets’ Director of Risk Management, Nikolas Xenofontos, tells TheMoveChannel.com.

Searches for gold spike in post-Brexit rush

Searches for gold spiked in the immediate rush of market reactions and investments, following the UK’s vote to leave the European Union.

The Royal Mint reported that visits to its bullion trading platform jumped by more than five times, as demand for gold bars and coins climbed, while Google tweeted that searches for “buy gold” jumped 500 per cent in the wee small hours of the morning of Friday 24th June.

Royal Mint sells gold bullion for pensions

Gold has been available to hold within a pension for several years: the Financial Conduct added physical gold Bullion to its list of standard assets in 2014, meaning that financial advisers can now assist clients wanting to include physical gold in their pension planning through regulated pension schemes.

Now, Royal Mint gold bullion is also eligible for holding in Small Investment Personal Pension (SIPP) and Small Self-Administered (SSAS) Schemes.

“The move to make Royal Mint gold bullion available for holding within pension schemes opens us up to a whole new marketplace,” says Director of Bullion at The Royal Mint, Chris Howard. “This is a natural progression in The Royal Mint’s aim to provide the complete one stop bullion solution.”