August 25th, 2023 - This Week in Alternative Investments

A burned wreck of a 1954 Ferrari 500 Mondial Spider sold for $1.875 million at Monterey Car Week.


Bite sized market updates

Over $400 million worth of cars were sold at Monterey Car Week. It was led by a 1967 Ferrari 412P Berlinetta that sold for over $30 million, but overall numbers were not encouraging for the classic car market.

Two separate Mickey Mantle items sold for over $4 million. A 1958 jersey sold for $4.68 million and a 1952 baseball card sold for $4.5 million.

Mortgage rates reached their highest point in 22 years. The average 30-year fixed rate continued to rise, reaching 7.23% for the first time since June 2001.

The founders of China’s Long Museum are selling $150 million worth of art. The sale at Sotheby’s in Hong Kong will include works by Magritte, Modigliani and Kusama.


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Market Updates

Monterey Car Week saw a 15% drop in total sales from last year’s record total. Over 1200 cars sold for a total of $400.1 million compared to last year’s $473 million. Importantly, the sell-through rate dropped from 78% to 68%, with several high-profile lots failed to meet their reserve prices. According to the Knight-Frank Luxury Index, the classic car market has fallen 7% so far in 2023. The two highest profiles sales from the week were a 1967 Ferrari 412P Berlinetta that sold for $30.1 million and a burned shell of a 1954 Ferrari 500 Mondial Spider (one of only 13 produced) that sold for $1.875 million.

A Mickey Mantle jersey set a new record by selling for $4.68 million. The game-worn and photo-matched jersey from 1958 more than doubled the previous record of $2.2 million set in 2020. Also at Heritage Auctions, a 1952 Topps Mantle baseball card graded SGC 9 sold for $4.5 million, showing his continuing popularity among high-end collectors.

The average 30 year fixed mortgage rate hit a 22-year high. According to Freddie Mac, the benchmark hit 7.23%, up from 7.09% last week, and the highest mark since June 2001. With the vast majority of homeowners locked into lower rates, inventory has cratered while prices remain high. The higher rates also have caused mortgage application volume to dip to lows not seen in decades.

A collection of art valued at around $150 million is being auctioned at Sotheby’s later this year. The Chinese couple Liu Yiqian and Wang Wei, the founders of Shanghai’s Long Museum, have agreed to auction a portion of their collection. The artwork being sold includes works by artists such as Modigliani, Magritte, Hockney, and Kusama.