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  #16  
Old 07-11-2009, 09:07 AM
Glennwillow Glennwillow is offline
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No, guitars are not a good investment.

However, it's a better investment than taking an expensive vacation, which has mental and emotional returns. If you enjoy playing guitars and it's not a source of contention between you and your family, then you get some enjoyment from playing something that still has value when you sell it. It's not simply dumping money down a rat hole. If you subtract the value of your being able to play this guitar for say, 10 years, from the cost paid, then when/if you sell it, the return you get at that time doesn't have to show a profit for you to feel OK about your original purchase.

But if you are looking to make 8% on your money, investing in guitars is not even close to how to do this (not that I have any idea where to get a safe 8% return on my money these days!).

Regards, Glenn
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  #17  
Old 07-11-2009, 09:39 AM
zombywoof zombywoof is offline
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A few years back Money Magazine or Frobes or one of those came out with an article saying that guitars were a better investment than property in Malibu.

A few weeks back a blackguard Tele in absolutely beautiful condition was put up by one of the major auction houses with an estimated value of $40K. It brought around $25K.
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  #18  
Old 07-11-2009, 09:51 AM
Broadus Broadus is offline
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Quote:
Originally Posted by zombywoof View Post
A few years back Money Magazine or Frobes or one of those came out with an article saying that guitars were a better investment than property in Malibu.

A few weeks back a blackguard Tele in absolutely beautiful condition was put up by one of the major auction houses with an estimated value of $40K. It brought around $25K.
Is that not "after the fact" investing? What I mean is, how would anyone have an idea which guitar would become esteemed so valuable years down the road?

Bill
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  #19  
Old 07-11-2009, 11:57 AM
Martin_Nut Martin_Nut is offline
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The market for investment grade guitars is tiny, and highly fragmented. Depending on something like that for steady appreciation and producing a willing buyer when I am ready/need to sell is a scary thought. And the kind of guitars that are more likely to appreciate turn out not to be ones I care to own - ahhh, maybe an L5CES or a really cool old Martin, but not most of them.
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  #20  
Old 07-11-2009, 01:05 PM
zombywoof zombywoof is offline
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Originally Posted by Broadus View Post
Is that not "after the fact" investing? What I mean is, how would anyone have an idea which guitar would become esteemed so valuable years down the road?Bill
It seems that guitars go up in value when they are associated with a very popular player. If Leadbelly had not played a Stella 12-string I somehow doubt they would be commanding $20K these days. In one of his newletters George Gruhn once told a story about how the value of late 50s Les Pauls jumped as soon as Mike Bloomfield started playing one. Today those guitars, which can be linked to a who's who of famous rock guitar slingers, can bring over $250K.

Back when I started playing the only guitar I recall being considered a real collectible and one would go up in value (or at least never drop in value) was a pre-War Martin D-28 herringbone. I do not think any of us thought those 1950s Fenders we were buying because we could not afford a new one would bring enough to make a down payment on a house.
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  #21  
Old 07-11-2009, 01:11 PM
random works random works is offline
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small ,guitar -shaped paper weights made of gold.
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  #22  
Old 07-11-2009, 01:28 PM
1folksinger 1folksinger is offline
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Way back "in the day" of December 2005, I came across a Collings OM42, Braz/Ad, with the "Tree Of Life" inlay in the fingerboard and headstock. So, being the half crazy musician I am, and having some green backs in the bank, I adopted that guitar, and have never looked back. Needless to say, the instrument is beyond fantastic in every regard, and I haven't even seen one offered for sale anywhere. At the time, I mentioned to my very understanding wife that when I pass on someday, she can either keep it, or sell it like an insurance policy. I also note, that not only has Bill Collings and Co. stopped regular production of Brazilian guitars, but the "value" of the OM42 has just increased with time, not only monetarily, but musically as well.
In 2005 the instrument cost was very high (as one might imagine) and my initial investment has given me 4 years of joy, AND that OM42 will retain it's value much more than a "non-Brazilian" model.....so in this rare instance, it was (and IS) a solid, sound investment. (No pun intended.) Generally however, I do agree that for the most part, just buying guitars for an investment isn't a very good idea. Guitars are simply tools really. Some can be very expensive tools (like "Snap-On" for instance) or they can be of the cheap almost disposable tools that can be found at places like "Harbor Freight." They might do the job for a while, but sooner of later there will be a "quality" issue.... especially with wood, steel and glue. If one can invest in the instrument market in this day and age, my advice is: STAY AWAY FROM E-BAY, find out EVERYTHING you can about the instrument, and be very very careful. Only buy from reputable dealers or people you can trust. It may be difficult to copy a Martin from the 30''s, but I stop short of saying it can't be done. ANYTHING can be copied or "cloned" these days, so I say know your seller (as best you can) and hold on to your pocketbook until the instrument of your dreams comes along. Remember, if it sounds too good to be true, it probably is. After all, isn't it an investment in your future? Better guitars make for better players, and I'm stickin' to that thought. When one considers the cost of some of the choices out there, I'd be very careful who I "invest" in, hopefully a skilled craftsman or a "company" with years and years of professionalism and quality. That's exactly why I'm such a Collings lover. I know that the OM42 I play will never lose it's value, in fact if anything, it's actually gone UP in value, since they are extremely rare.
Just a few thoughts on the subject, so, what do you think?
In harmony, cheers..... folksinger.
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  #23  
Old 07-11-2009, 01:33 PM
Martin_Nut Martin_Nut is offline
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folksinger,

Nice story - NICE sounding guitar! You bought for the right reasons, and often that turns out well. I have one or two I bought right and would not part with - but if I had to, they might make me a dollar or two. In general I've lost just a little when I flip a guitar, but in terms of experience and lessons learned I figure I am ahead of the game (to date).

Quote:
Originally Posted by 1folksinger View Post
Way back "in the day" of December 2005, I came across a Collings OM42, Braz/Ad, with the "Tree Of Life" inlay in the fingerboard and headstock. So, being the half crazy musician I am, and having some green backs in the bank, I adopted that guitar, and have never looked back. Needless to say, the instrument is beyond fantastic in every regard, and I haven't even seen one offered for sale anywhere. At the time, I mentioned to my very understanding wife that when I pass on someday, she can either keep it, or sell it like an insurance policy. I also note, that not only has Bill Collings and Co. stopped regular production of Brazilian guitars, but the "value" of the OM42 has just increased with time, not only monetarily, but musically as well.
In 2005 the instrument cost was very high (as one might imagine) and my initial investment has given me 4 years of joy, AND that OM42 will retain it's value much more than a "non-Brazilian" model.....so in this rare instance, it was (and IS) a solid, sound investment. (No pun intended.) Generally however, I do agree that for the most part, just buying guitars for an investment isn't a very good idea. Guitars are simply tools really. Some can be very expensive tools (like "Snap-On" for instance) or they can be of the cheap almost disposable tools that can be found at places like "Harbor Freight." They might do the job for a while, but sooner of later there will be a "quality" issue.... especially with wood, steel and glue. If one can invest in the instrument market in this day and age, my advice is: STAY AWAY FROM E-BAY, find out EVERYTHING you can about the instrument, and be very very careful. Only buy from reputable dealers or people you can trust. It may be difficult to copy a Martin from the 30''s, but I stop short of saying it can't be done. ANYTHING can be copied or "cloned" these days, so I say know your seller (as best you can) and hold on to your pocketbook until the instrument of your dreams comes along. Remember, if it sounds too good to be true, it probably is. After all, isn't it an investment in your future? Better guitars make for better players, and I'm stickin' to that thought. When one considers the cost of some of the choices out there, I'd be very careful who I "invest" in, hopefully a skilled craftsman or a "company" with years and years of professionalism and quality. That's exactly why I'm such a Collings lover. I know that the OM42 I play will never lose it's value, in fact if anything, it's actually gone UP in value, since they are extremely rare.
Just a few thoughts on the subject, so, what do you think?
In harmony, cheers..... folksinger.
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  #24  
Old 07-11-2009, 05:13 PM
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Bruce Sexauer Bruce Sexauer is offline
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Despite what others are saying, one can do quite well with guitars as an investment. All investments are speculative. And speculations are just hot air if you aren't willing to invest in them. The more you educate yourself, the more likely a positive return on speculative investment. I personally have done way better in the equities market than most managed retirement portfolios have this last couple of years. I do my own research, and buy and hold is my watchword. It is the same with guitars.

Buy low and sell high will sometimes work in the short term, assuming you have a great grip on current values, and it doesn't matter whether it's a cheapie or the holy grail, both can work.

As far as long term investment is concerned, it is a good idea to buy ONLY quality. Some people try to pick the up and coming builder before they have a reputation. In such a case you not only need to understand exactly what a good guitar is, but you must also know your man (or woman, of course). The human failings that can torpedo your maker are many.

Those who bought my work ten years ago have seen their $3000 "investment" grow to nearly $10k (I have inside knowledge that they will get another 10% in fairly short order), and they are going to have a lot easier a time finding a buyer as well. But few, if any, were thinking like that at the time of purchase, and the did get what they were actually after. Amortizing their cost against the hours of joy make it look like pretty cheap fun, too.

Last edited by Bruce Sexauer; 07-11-2009 at 06:48 PM.
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  #25  
Old 07-11-2009, 05:22 PM
Howard Klepper Howard Klepper is offline
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Quote:
Originally Posted by Bruce Sexauer View Post
Buy low and sell high will sometime work in the short term, assuming you have a great grip on current values, and it doesn't matter whether it's a cheapie or the holy grail, both can work.
Buy low sell high is invariably a winning investment strategy. You can make a profit on guitars just by doing that one thing.
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  #26  
Old 07-11-2009, 05:24 PM
SongwriterFan SongwriterFan is offline
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Quote:
Originally Posted by HHP View Post
Guitars are speculation, not investment. Their future value is determined by the not necessarily logical demands of the buyers at that time.
Sounds remarkably like the stock market.

That being said, here's hoping that Tim McKnight becomes the next "Somogyi" (at least in terms of prices for his guitars).
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  #27  
Old 07-11-2009, 05:25 PM
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Quote:
Originally Posted by gags View Post
I bought a Gibson Les Paul zebrawood few months back guitar of the week 1 of 400 made.

That guitar (second from left) is GORGEOUS!
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  #28  
Old 07-11-2009, 07:15 PM
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Bruce Sexauer Bruce Sexauer is offline
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There's another guitar to the right?
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  #29  
Old 07-11-2009, 07:21 PM
Brock Poling Brock Poling is offline
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I think there are some guitars that will rise in value over time... but I tend to think of these in terms of luthier built guitars. These would probably be considered to be more collector oriented than pieces to play regularly.

I am sure a few (reasonably) safe bets would be.

Grit Laskin
Michi Matsuda
Fred Carlson

Just imagine if you commissioned a D'Aquisto when Jimmy was alive what that would be worth today.

Like the others, I am not sure if investing in guitars is a "smart" play, but I do think there is money to be made there if you do your homework.
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  #30  
Old 07-11-2009, 07:40 PM
mesa mesa is offline
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My Dad bought a 1927 Gibson L5 in a Pittsburgh pawn shop in 1948 for $60.00. It sat in his attic for about 15 years and had some issue's. He didn't buy it for an investment....but George Gruhn after seeing the pic's made him a happy offer. So it belongs to George now
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