The “priciest piece of aluminum in NYC” – a taxi medallion to operate a single cab in NYC – reached a new record-high of $609,000 in August for an individual medallion (see chart above, data here), more than double the average prices in 2004. The average price for a corporate-owned taxi medallion reached a new record high in July and August at $825,000.

Membership in the “taxi cartel” certainly has its privileges: above-market returns of 17% per year for corporate medallions and 15% for individual medallions in a permanent bull market.  Over the same period from 2004 to 2010, the average annual return on the S&P500 was -1.10%.  See previous CD posts herehere and here.

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