Guitars as investments...

[DanvillRob]

I also buy mine to play. I will pass them down when I'm gone and hopefully they will be played and appreciated as much as I appreciate playing and having them.

 

I think rather than "investment" we buy for as "family heirlooms"

 

I know that's what I do.

[pfox14]

Fact of the matter is vintage guitars have appreciated in value more than real estate and the stock market, so I think that qualifies them as a good investment. Whether or not you choose to do so is a whole other story.

[Searcy]

The money is made on the guitar deal by buying low. Ive bought and sold lots of guitars over the years and made money or at least not lost money on all of them. There were a few I made lots of money on because I bought them at a good price and sold them at the right time. In 1988 you couldnt give a Gibson Ripper bass away so I bought one for $175. in a pawn shop in Miami. After Nirvana redefined cool a few years later I sold the bass for $900. That was nothing more than pure, blind, luck of the draw. Thats what makes guitars a stupid place to put your money if youre looking to make a good return on your investment.

 

You will not get an average 12% annual return on a guitar as you will with a proven, diversified mutual fund or enjoy the benefits of compounded interest.

 

Buy guitars because they are cool and fun to play. Buy them because we are guitar geeks or because our hero plays that same one! And if it just so happens that you are lucky enough to end up with one of the few that sky rocket in price then enjoy it and brag about it some. But lets not con ourselves into thinking we are making smart financial moves by paying retail for expensive new guitars that immediately depreciate as soon at you walk out the guitar store door.

[stein]

Fact of the matter is vintage guitars have appreciated in value more than real estate and the stock market, so I think that qualifies them as a good investment. Whether or not you choose to do so is a whole other story.

This isn't actually true.

 

There WAS a brief time when some guitars were appreciating at a rate that the value seemed to be going up faster, and it actually got some press because of it. There were even some who started making 'stocks' of guitars for investments by taking 10 or so various guitars (so called 'diverse') for "investment" purposes.

 

But, the problem is that if you treat them like REAL investments, you have to factor in storage and insurance. When that was factored in EVEN at the time that statement was partially true, they were not as profitable to make them better investments. So, perhaps if you wanted to keep them yourself and NOT insure them, you could do better than real estate and stocks (again, AT THE TIME THE STATEMENT WAS TRUE).

 

The problem is (was) is that the IDEA that they were going UP in value was based on a BREIF period, and based on the past few years, where guitars were going up quickly.

 

IF you were to take these very same guitars, the statement today might be "guitars are tanking at a rate more than real estate and average stocks". IF you had "invested" in guitars at that time when they were going UP in value, ESPECIALLY THE ONES THAT WERE GOING UP THE FASTEST, right now you would be looking at your own personal version of a market crash.

 

I had looked into it myself at the time, and was kinda excited at the thought of not only making a profit but being able to have some pretty awesome guitars. How do you think I would have done?

[stein]

Fact of the matter is vintage guitars have appreciated in value more than real estate and the stock market,

Short version: If someone had believed that, they would be sitting on a bunch of guitars that had lost more value than real estate and the stock market that are going down faster than both.

 

Not singling you out bro.

[charlie brown]

The only "investment" a guitar is good for, is in your own music,

and enjoyment, of ownership, and (above all) PLAYING!! Bragging

rights, is a tail chase, as there will always be someone, with a

more expensive, more rare, better, bigger, etc., etc., etc.!

 

Just play them!!

 

CB

[TommyK]

Guit tars, like engagement rings, are not investments. Guit tars are instruments designed to be played. Engagement rings are meant to be kept and not sold and therefore are poor investments. However, if your girlfriend looks at a ring as an 'investment' (i.e. something that could be flipped...), save your money and RUN!!!!!!!!!!!!!

 

 

If the jewelry salesman tells you that a diamond is an 'investment'. Look him square in the eye and say, "Bull @#(*&$." then read him sentence three above.

 

If someone tells you, "You should purchase a ring that equals a month's wages," say "Bull @#(**." Anyone that believes that is looking for a pay day.

[Rich W]

The only "investment" a guitar is good for, is in your own music, and enjoyment, of ownership, and (above all) PLAYING!!

 

+1

 

Sometimes the "investment" rationale is just an excuse to add to the collection.

 

A few friends have a serious set of guitars on their walls, but hardly play at all ... and justify it by falling back on the investment idea (also known as cognitive dissonance reduction).

[Californiaman]

I've only had one guitar to actually appreciate in value.

 

And it just keeps getting better even with the slump.

 

The rest I could flip for equal or slightly more than what I paid.

 

You've got some great guitars AXE®.

I wouldn't mind seeing the collection again.

Three of your guitars are in my opinion awesome.

The Korina Explorer, the Firebird and the red SJ-200.

Your Les Pauls are aways striking in appearance too.