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Investment guitar


LarryUK
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In my case it is an inherited guitar, my late mother-in-law's 1968 Martin 5-18, a little tiny terz guitar. She never played it so it's nearly pristine. I had the pick guard replaced because the original had warped and had pulled up at the edges but otherwise very original. It even has the original strings on it. And I have the letter from Martin & Co. when she registered it when she got it. I'll never play it much partly because it's too small and I want to keep it almost as new. It's kinda like a low mileage classic car.

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Certainly guitars can be an investment but they have to be vintage to seriously appreciate so you can't buy new and expect to make a turn on the price after a year or two.

Unlike the stock market the value doesn't go up and down, if a guitar is appreciating it will continue to do so, well at least in line with the world economy. Unlike the stock market the guitar market is fickle in the way that it is name driven so a 1965 Gibson semi acoustic will go for considerably more than the value of say a Guild made the same and in the same year.

 

So if you want to invest in guitars the big names come first Gibson Martin and Fender and the older the better and of course the condition is important too. However if you buy a Gibson in poor condition and do it up there is a profit to be made there. I did that with a 30s Gibson archtop and made a 50% profit in a year turnaround.

 

Of course there is also a market outside the big three, I hear from my friend in Japan that dealers are buying up Japanese made 70s 80s Epiphone Ibanez ect and selling to USA and Europe in a big way. So here it is a case of the market catching up on the names.

 

Of course there is always a risk in any investment and as a couple of members have said perhaps the guitar market is coming to an end but didn't some one in Decca say that about the Beatles!

 

 

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Certainly guitars can be an investment but they have to be vintage to seriously appreciate so you can't buy new and expect to make a turn on the price after a year or two.

Unlike the stock market the value doesn't go up and down, if a guitar is appreciating it will continue to do so, well at least in line with the world economy. Unlike the stock market the guitar market is fickle in the way that it is name driven so a 1965 Gibson semi acoustic will go for considerably more than the value of say a Guild made the same and in the same year.

 

So if you want to invest in guitars the big names come first Gibson Martin and Fender and the older the better and of course the condition is important too. However if you buy a Gibson in poor condition and do it up there is a profit to be made there. I did that with a 30s Gibson archtop and made a 50% profit in a year turnaround.

 

Of course there is also a market outside the big three, I hear from my friend in Japan that dealers are buying up Japanese made 70s 80s Epiphone Ibanez ect and selling to USA and Europe in a big way. So here it is a case of the market catching up on the names.

 

Of course there is always a risk in any investment and as a couple of members have said perhaps the guitar market is coming to an end but didn't some one in Decca say that about the Beatles!

Yeah, the point I was making earlier about people having sufficient resources to 'play' with guitar investment was meant to imply the vintage market. A friend of mine worked in a music store, sold a new Martin D-41, the customer would then 'drop in' every 4 months to inquire if his 'investment' had appreciated. Maddening😖

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Heck of a difference between investing and speculating, and even when speculating you'd want to go for the very top most desireable examples to stand a chance of making serious money (unless you're going to buy a hundred or so old Ibanez and pray it's not a fad). I don't get that notion that kids are no longer into guitar. For starters there's a couple more billion people on the planet, and what will happen when the Chinese, Indian, Russian, Indonesian etc kiddies discover that they prefer Guns n Roses or whoever more than their ethnic er, stuff. Meanwhile I see kids carrying guitar shaped cases to the local lessons place every afternoon, my nephews head off to 'Guitar University' with eyes on a guitar career, and I doubt those billions of hits on YouTube for anything and everything guitar and rock band are all made by oldies. She'll be right mates.

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Certainly guitars can be an investment but they have to be vintage to seriously appreciate so you can't buy new and expect to make a turn on the price after a year or two.

Unlike the stock market the value doesn't go up and down, if a guitar is appreciating it will continue to do so, well at least in line with the world economy. Unlike the stock market the guitar market is fickle in the way that it is name driven so a 1965 Gibson semi acoustic will go for considerably more than the value of say a Guild made the same and in the same year.

 

So if you want to invest in guitars the big names come first Gibson Martin and Fender and the older the better and of course the condition is important too. However if you buy a Gibson in poor condition and do it up there is a profit to be made there. I did that with a 30s Gibson archtop and made a 50% profit in a year turnaround.

 

Of course there is also a market outside the big three, I hear from my friend in Japan that dealers are buying up Japanese made 70s 80s Epiphone Ibanez ect and selling to USA and Europe in a big way. So here it is a case of the market catching up on the names.

 

Of course there is always a risk in any investment and as a couple of members have said perhaps the guitar market is coming to an end but didn't some one in Decca say that about the Beatles!

 

If you've been to guitar shows all over the country for the last 25 years or so, you've seen the smug, contented look of the vintage heavy dealers slowly devolve into hungry desperation. A 28,000 dollar Strat in the year 2000 is now what? 24,000, closer to 20,000 even. The more narrow, fickle, and fiscally volatile the targeted buyer the less overall return, and in the case of guitars, the only beneficiaries of the acquisition of allegedly valuable "vintage" pieces are guitar players, in the end. There's a bunch of guys that can't even buy themselves a beer at the gig. Probably one of the dumbest bubbles ever.

 

rct

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If you've been to guitar shows all over the country for the last 25 years or so, you've seen the smug, contented look of the vintage heavy dealers slowly devolve into hungry desperation. A 28,000 dollar Strat in the year 2000 is now what? 24,000, closer to 20,000 even. The more narrow, fickle, and fiscally volatile the targeted buyer the less overall return, and in the case of guitars, the only beneficiaries of the acquisition of allegedly valuable "vintage" pieces are guitar players, in the end. There's a bunch of guys that can't even buy themselves a beer at the gig. Probably one of the dumbest bubbles ever.

 

rct

 

I

I would say that a good condition 1954 Strat bought in 2000 for 28000 usd would be worth around around 60 000 usd today. Not the worlds greatest investment but not bad.

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I

I would say that a good condition 1954 Strat bought in 2000 for 28000 usd would be worth around around 60 000 usd today. Not the worlds greatest investment but not bad.

 

An investment adviser that recommended the absolute rarest of objects for investment purposes would quickly lose his credentials. That guitar was made for almost 4 months, by hand, by three people. I'm pretty sure all have been spoken for, and that kind of money, quarter million or so, isn't what we are talking about.

 

The first Model T? Sure, probably worth a mint. My '68 Falcon? A few thousand less than it sold for. Citing the original Model T as evidence that car investing is a good reason to buy a '68 Falcon is not quite right.

 

rct

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I did not buy it with the intentions of it being an investment object, but when I bought my 1960 Gibson ES355 new it was with the intentions of using it, which I did for close to 15 years while we toured in the 1960s and early 1970s. I was extremely careful with it, and even though I used it for close to 15 years, the last time I had it appraised , they rated it a 9-9.5 on a scale of 10 being mint. My $800.00 purchase price in 1960 has increased quite a bit . I keep it in a guitar safe with three other guitars. But actually an investment would be classified as something you would be willing to sell to profit on the items value. I have no intentions of ever selling the guitar, so " investment" , I am not sure it would fall into that category .

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I

I would say that a good condition 1954 Strat bought in 2000 for 28000 usd would be worth around around 60 000 usd today. Not the worlds greatest investment but not bad.

 

If you bought Apple stock on Dec 1,2000 at $1.06 a share (split adjusted) and sold it today for $143.75 per share you'd be better off.

 

So $28,000/$1.06 = 26,415 shares x $143.75 = $3,797,170...who in their right mind would buy a Strat?

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I bought my 81 Gibson "The V" in 1984 used for $800.00 and it appraised for $3000.00 recently. It's definitely been played and loved and even with all that, it still happened to go up in value in the last 36 years. However, that doesn't mean that's what someone would pay for it. Guitars are a good investment if you're investing in them to improve your own guitar playing, in my opinion. I upgraded from a Sears SG to an Electra Working Man back in the early 80's. That was the best investment I made because it helped me become better as a player, due to its playability. But, putting a few thousand in a guitar and hoping it'll go to 100,000? I don't know about that. I buy mine to play and play a LOT.

 

And, as far as guitar rock being dead, I'm not buying that one bit. Then again, I live in Kentucky and we're about 5 to 10 years behind the rest of the world. :)

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Still, you would have a lot more if you put those $800 on an index fund in 1984.

 

On a side note, here in Nashville it is not a good idea to post a appraised value when trying to sell an instrument, if you are asking appraised value (which seems to be for insurance purposes only) people seem to get vicious about it.

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Still, you would have a lot more if you put those $800 on an index fund in 1984.

 

On a side note, here in Nashville it is not a good idea to post a appraised value when trying to sell an instrument, if you are asking appraised value (which seems to be for insurance purposes only) people seem to get vicious about it.

 

I definitely got lots more than $800.00 in fun out of that guitar. I played the hell out of it for years and still do. And, good point about appraised value. It was for insurance, of course. I wouldn't sell that guitar, ever. So, folks can get vicious all they want. It's mine and they can't have it even at three times the appraised price. Hopefully when I die, it will go to my kids who will then play it and pass it on until it's nothing but an overgrown toothpick. :)

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Ha!, yea, I guess you have to make the million dollars first and then buy the Strat

msp_thumbup.gif

 

He also owns 'Brownie'..........

 

I know the temptation is just to scan the first line or two but everyone here really should read the article in the link; it's pretty damn fascinating stuff!

Who'da Thought?....

 

Pip.

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msp_thumbup.gif

 

He also owns 'Brownie'..........

 

I know the temptation is just to scan the first line or two but everyone here really should read the article in the link; it's pretty damn fascinating stuff!

Who'da Thought?....

 

Pip.

 

Yes I read it...and there are rich rock stars giving him guitars!!!!!

 

I'd like to see the sparkly red 175.....

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I'd like to see the sparkly red 175.....

I'd like to be invited to one of his ship-board parties!

 

msp_thumbup.gif

 

So are we meant to understand that the other Fenders in the photograph are the Peter Gabriel '53 Esquire and 'Brownie'?....

 

Pip.

 

EDIT : I'll start a thread on this in the lounge just in case others who might otherwise enjoy it miss it here.

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Eh?!?!?

 

Is that THE Paul Allen one or else just 'one like it'?........msp_scared.gif......

If it's his one I'm not surprised he hasn't found 'his song in that guitar' yet!.........LOL!

 

Pip.

 

It says 'post-tantrum' in the title and it's on someone to do with U2's PB page, so....?

If it is Bono's....would anyone else dare do such a thing to it?

Perhaps being voted "Woman Of The Year" did it........ [biggrin]

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I definitely got lots more than $800.00 in fun out of that guitar. I played the hell out of it for years and still do. And, good point about appraised value. It was for insurance, of course. I wouldn't sell that guitar, ever. So, folks can get vicious all they want. It's mine and they can't have it even at three times the appraised price. Hopefully when I die, it will go to my kids who will then play it and pass it on until it's nothing but an overgrown toothpick. :)

 

And that's the point that most of us are trying to make in response to the opening post. I am glad you love your guitar, I am on the same boat and there are thousands of players out there with guitars they love. If a guitar happens to appreciate it is a plus but it is usually not likely a good financial investment.

 

I have a 2004 Flying V faded that I refinished, it was well played when I got it a 3 years ago and it is a great player and probably the most resonant guitar I own. Fantastic neck and has an ebony board too.

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If it is Bono's....would anyone else dare do such a thing to it?

Perhaps being voted "Woman Of The Year" did it........ [biggrin]

msp_laugh.gif

 

I'm guessing Bono had a few made and PA still has one in mint condition;

 

"Bono returned the favor by presenting Allen with one of his custom red-sparkle Gibson ES-175 guitars..."

 

Pip.

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