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Old 07-11-2009, 07:59 AM
Sordello Sordello is offline
Was Sceptical. Unsure now
 
Join Date: Aug 2005
Location: Canuck Down Under in Oz
Posts: 2,405
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Quote:
Originally Posted by jtc View Post
"Cool thing is I can't enjoy and play my stock and bond portfolio."

Which is partly why I'm exploring this as an idea.
If that is the reason, might I suggest collecting wine? (Much more exciting than stamps and coins, and you CAN enjoy the inventory that is 'under-performing' in the ROI ratios!!)

More seriously though, I should think keeping provenance info re. wine bottles would be much easier than tracking down guitar info and getting provenances about years, repairs, and original parts etc.

Prior post re. pre war guitars is spot on, especially when you consider the companies now are making a gazillion different models and styles, so you need a fortune to even get a representative sample of what is being made. Who knows which ones will rise in value?

Risks come from all directions - Larrivee is a case example: in the 70's JCL was a small shop, boutique maker. Top of the line guitars, very expensive and destined to be collector items. Then, he transformed into a factory, and began mass-producing. Then began making budget line models. Resale value dropped significantly. Market gets flooded with Larrivees. My 1978 L10 Deluce could have been worth $5,000 today if JCL had stayed small and been a peer of Baranik, Somogyi, Manzer etc. Now, I doubt I would get $2,000 for it, even though it has a tone that can stand shoulder to shoulder with any high end Martin, or Somogyi or Bashkin or Traugott... The market has a skewed belief: why buy an old '78 used Larrivee for $5000 when I can get a brand new one for $1000? (I know of a GORGEOUS-TONED '77 Larrivee L10 that was a honey! It had no bling but it still couldn't sell for $1000 since it had a few dings. Most luthiers would have killed for the tone out of that guitar!)

Then, sorry to get all morbid, but there is also the consideration that maybe you are the only guitar fan/expert in the family. If something should happen to you, what is your family to do with all these guitars requiring delicate care. Every attempt to sell one will involve many questions, details and provenance issues (disputes?), and your family may be only able to shrug their shoulders or waste the capital gains on professional experts to do this work. (Stocks and bonds are very easy for estates and executors to deal with). Wine can be useful for any Wake that is planned!
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