Taxi investments fare well

New York cab medallions soar in value over the decade

By Kim Peterson Oct 6, 2009 5:37PM

Image: New York Taxi. Photo credit: Henning 48, Creative Commons Attribution ShareAlike 3.0 LicenseEven in this down economy, one investment out there still soars. It can claim a 179% jump in value this decade -- let's see your measly stock match that!


What would bring such divine returns? Owning a New York City taxi medallion, according to Crain's New York Business. New York only allows 13,000 medallions -- a number Crain's says hasn't changed much since the 1930s.


A taxi medallion is now valued at about $760,000. Medallion prices dropped in the last recession, but this time around, they're seeing a smooth ride.


Perhaps it's because medallion owners can rent their licenses out,  writes Aaron Elstein. And plenty of people are clamoring to be taxi drivers, now that the economy has wiped out jobs across the board.


The city's Taxi and Limousine Commission thinks that taxi-driving became more attractive after a 2004 fare increase, and fewer are leaving for other jobs.


Either way, medallion owners have a nice little nest egg there, one that is proving exceptionally recession-resistant.


One other investment still beats taxi medallions. That would be gold -- which has risen 245% this decade, Crain's reports.


Photo credit: Henning 48, Creative Commons Attribution ShareAlike 3.0 license

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