[AMC-List] AMC

[Michael Bailey <route66rambler@xxxxxxxxx>]

  A 70 Hemi 'Cuda should probably command a decent sum, if not the amount they do, which is ridiculous, as it is nothing like a Duesenberg.  But only 5 or 10 of them were ever made, out of what?  Hundreds of thousands of B-bodies?  So these are truly rare, uranium-like finds.  The same with the vaunted COPO Camaros.  A few hundred out of a few hundred thousand.  CobraJet Mustangs, not as rare numerically, but percentage-wise, there can be quite a few out of MILLIONS of Mustangs.

  Others of these cars are simply good promotion. Consider the 1967 396SS Chevelle.  Pretty rare, right?  Sorry, something like 69,000 made.  '70 LS 5/6 anyone?  Tens of thousands.   But desirable nonetheless.

  But when looked at calmly, the sad and simple fact(in my own not so informed opinion) is that many of these cars will not remain at the stratoshperic prices they have achieved.  Rarity still must be a factor, as there are only so many who can afford to second-mortgage their homes to keep up with their musclecar joneses.

  There are many, and I mean Many, at the top of the collector biz, including the honchos at these auctions out here in Phoenix, who feel that a serious "adjustment" is on the way in the market.  When these cars leapfrog over the ability of the middle class to own them, their market shrinks drastically.  If all of the filthy rich already own their examples, who is going to buy that 100K Chevelle?  The answer, of course, is no one.  So it quickly becomes a 50K Chevelle.  Then it's back to a 25K Chevelle again, as it has been for years.

  Any hotshot on Wall Street will tell you that commodities which experience sudden spikes in pricing must eventually "adjust" to reflect the true demand/supply relationship.  We are experiencing this in the housing market in Phoenix right now.

 So where does all of this leave AMC?  I believe that as time fades the memory of where all these cars sat originally in the marketplace, brand will become less important than type.  A 60's or 70's two door hartop will be what someone wants(for example), and they won't care what the badge is on the side.  There is a lot of evidence of this already.  And as the Chevelles and Galaxies climb out of sight of Joe Average, the Matadors and Classics become more "desirable".

  And the Wall Street hotshot from a couple paragraphs ago will tell you that the long-term bet for any commodity is on those that undergo incremental pricing increases over a substantial period of time, as opposed to those which spike and adjust, then spike and adjust again.  Eventually, the gap will close more and more, at which point the supply-and-demand factor will take over.  So buy those AMC's cheap while you can, but HOLD ON TO THEM.  They will eventually become unavailable at any price.

  As to the respect factor right now, today, Mahoney is right in that the "quality of the ownership" of these cars will make huge differences in what we have seen in the past.  You MUST be an informed owner.  You must be a dedicated owner. YOU YOURSELF must make the cars desirable.  Refuse to let them go for less than what they are "worth" to people who don't care about them, and they will become exclusive.  

If you hoard them as investments, then like any other investment, there are attendant risks.

 But if you enjoy them for what they truly are, they will always offer a significant return, regardless of market values
m.



 		
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