Good guitar investments

Discussion in 'Guitars in General' started by sylvanshine, Feb 21, 2008.

  1. sylvanshine

    sylvanshine Member

    Messages:
    272
    Joined:
    Sep 9, 2002
    Location:
    Dallas
    In 16 years, my wife and I have to send our triplets to college. :eek:

    We've been talking to our financial planner about assets that we could invest in now that could be sold later to help pay for school.

    I know dick about real estate and financial holdings, what I do know is guitars.

    So I ask you, the wise men and women of TGP, what guitars would you buy now that should see a sizable return in 15-20 years? Let's say I've got $30,000 to spend. What do I buy now and stick under the bed?

    For arguments sake, let's keep it to the majors. Booteeks scare me (take a look at Anderson and Collings resale for example).

    Vintage, signature, limited edition, one offs? What say you?
     
  2. spikeRI

    spikeRI Member

    Messages:
    802
    Joined:
    Apr 17, 2002
    Location:
    Tejas
    much better investments to be had than guitars.........yea some of the prices are insane, but not something I'd bank on for my kids education....
     
  3. JoeB

    JoeB Member

    Messages:
    163
    Joined:
    Sep 28, 2006
    Location:
    South Florida
    I have a few investment guitars (to diversify outside of financials and RE) so I'll suggest the following:No signatures or relics.Vintage Gibson or Fender only, with NO issues.Like all other investments, no guarantees on return. Unlike other investments, substantially reduced liquidity.Good luck with the triplets.
     
  4. Jahn

    Jahn Listens to Johnny Marr, plays like John Denver Supporting Member

    Messages:
    27,703
    Joined:
    Feb 27, 2007
    Location:
    NYC
    Here you go!

    And check the list at the end of the article:

    Building a six-string portfolioWhile it certainly helps to be rich to get into the vintage guitar market today, there's still some fun to be had in all price ranges.

    If you're absolutely sagging with cash, here are the blue-chip investments:
    • Martin: Pre-war Martins (especially with herringbone trim or abalone inlay, and Brazilian rosewood back and sides);
    • Fender: Pre-CBS Fender Stratocasters (particularly in custom factory colors) and Telecasters (1954 and earlier with a black anodized pick guard are preferred);
    • Gibson: 1950s Les Paul Standards (the 1952-1957 Goldtop models can still be had for under $50,000) as well the intensely rare '50s Gibson Flying V and Explorer models, remain the premium investments. "Dot-neck" 335s and other semi-solid models are also in demand;
    • Some less-common instruments, such as D'Angelico arch-top jazz guitars, also have a long track record of appreciating.
    If you have less than $10,000 to play with, consider Fender's Jazzmaster and Jaguar guitars, and Gibson's lower-line 1950's Les Paul models such as the Special and Junior, and '60s models such as SGs and the Firebirds, as well as upper-tier flattop acoustics such as the J-200 and J-45, and arch-top jazz guitars.
     
  5. supar6

    supar6 Member

    Messages:
    251
    Joined:
    Sep 23, 2007
    Location:
    Minneapolis, MN
    +1 - best bet is really clean vintage Fender and Gibson stuff.
     
  6. daddyo

    daddyo Guest

    Messages:
    11,808
    Joined:
    May 19, 2003
    Guitars are a poor choice as a vehicle for funding a child's education. First off, you want something guaranteed. With the number of fake and questionable Fenders and the high buy in for Gibson, you really can't guarantee a decent return. What would you tell your wife and children if the $30k '57 strat was only worth $40K in 16 years? Or turned out to be diddled? Maybe spend 25% of it on a really pristine 1970 or something. I'd go conventional guaranteed investment vehicles that would more than double your money in 16 years.
     
  7. sylvanshine

    sylvanshine Member

    Messages:
    272
    Joined:
    Sep 9, 2002
    Location:
    Dallas
  8. sylvanshine

    sylvanshine Member

    Messages:
    272
    Joined:
    Sep 9, 2002
    Location:
    Dallas
    Good groceries. Sounds like I need to learn about a more conventional approach.
     
  9. Pete Galati

    Pete Galati Member

    Messages:
    1,680
    Joined:
    Jan 9, 2006
    I agree that guitars are a poor investment.

    I don't think boutique guitars are a good choice. There's usually less demand for them, and the initial investment is too high. Those kinds of things are for players who want something different, and have some extra expendable income.

    Guitars that already have collector value seem like a questionable choice as an investment because someone already made a big chunk of money selling it to you, and you don't know if the market will continue to grow.

    I would buy guitars like Gibsons, that're already a few years old, but still in great condition. That way, someone else has paid the initial depreciation, but in 25 or 30 years (if you're lucky) they'll have some collector value.
     
  10. daddyo

    daddyo Guest

    Messages:
    11,808
    Joined:
    May 19, 2003
    Not to mention that if you do buy guitars for investment, you're not going to want to stick it in a vault, you'll want to play them. Then you'll fall in love with them. Then you'll have to choose between selling your beloved vintage guitar and your child's education. What a sick decision. Who could make such a choice?
     
  11. Blue Fin

    Blue Fin Member

    Messages:
    2,460
    Joined:
    Oct 3, 2007
    Location:
    Cherry Hill NJ
    If you decide to do this, don't forget to buy plenty of insurance and a security system.
     
  12. eddie101

    eddie101 Silver Supporting Member

    Messages:
    6,230
    Joined:
    Mar 4, 2004
    Buy guitars for your own pleasure and nothing else and if they go up in $$ in the mean time, then great. If not, you'll still have the guitars for your enjoyment.

    Buy mutual funds and there are PLENTY out there. Go pick up a recent issue of Money mag or go see a financial advisor to ascertain which fund(s) are best for you and your family. It is a sure bet and guitars are NOT.
     
  13. carbz

    carbz Supporting Member

    Messages:
    4,537
    Joined:
    Mar 24, 2006
    Thank god I have no kids cause I'd be in big trouble! No way to predict what the future of guitars will be. Everyone is looking for a good investment these days as everywhere you turn there are no stable investments. I guess you cant go wrong with old gibby's and fender's but I doubt you'll put your kids through college on the profit you may make. Had you bought a 59 Les paul a few decades ago you'd be sitting pretty right now.
     
  14. rog951

    rog951 Member

    Messages:
    5,716
    Joined:
    Jun 2, 2007
    Location:
    DC Suburbs
    Congrats x 3! :D I'd go with a few clean, original "lesser model" '50s Gibsons (or perhaps some early '60s Gibsons). There seems to be some room for growth in the Juniors and Specials and you can still get in semi-affordably. Also invest in some means to keep your new triplets from trampling all over you investment! ;) I used to live next door to a set of triplets and all I have to say to you is "good luck!!!"
     
  15. vai777

    vai777 Member

    Messages:
    215
    Joined:
    Apr 13, 2004
    The vintage guitar market will not out perform the Stock market. No question... You may double your money in 15 years with the guitars, but you should triple it in the market
     
  16. soldano16

    soldano16 Member

    Messages:
    2,347
    Joined:
    Oct 7, 2004
    Location:
    British Columbia
    That specific market shows just how fickle vintage can be. Anyone who bought 1.5 years ago is out money today.
     
  17. wrxplayer

    wrxplayer Supporting Member

    Messages:
    6,792
    Joined:
    Jan 2, 2008
    Location:
    Somerset County, NJ
    I had the same question a year or two ago. Had some extra $$ and wanted to have fun. Went to an "expert" who recommended early PRS singlecuts as PRS and Gibson were in a lawsuit. I took the advice and got a mint 10 top 2001. PRS won the lawsuit so the guitar hasn't appreciated. Hasn't lost value at this point either. And, contrary to my original plan which was to leave it in the case for the most part, it has become my #1 guitar. I don't take it out of the house though.
     
  18. RDM

    RDM Senior Member

    Messages:
    3,714
    Joined:
    Jun 5, 2007
    Location:
    Viva Las Vegas
    I'd steer clear from guitars. With our economy, what you're going to see is prices going up and up because of the lack of supply and the ability to sell those pieces going down because of a possible recession. People are tight with their money right now. You can always, always make money in a down market with real estate. You don't need to know anything. RE is more predictable and more widely wanted. Not everyone wants a museum piece guitar. Everyone needs a place to live.

    Buy a forclosure, fix it up and rent it out. With the forclosures, people who once owned are now being forced to rent. When the market goes back up, refi, pull money out, and buy another house to use as a rental. You'll generate extra income and have a stable investment.

    Just my 2 cents.
     
  19. CrazyYoshi73

    CrazyYoshi73 Member

    Messages:
    105
    Joined:
    Feb 18, 2008
    It does not necessarily need to be a Gibson or Fender. If you do go vintage just make sure what you are buying is authentic! My time horizon for this one is 30+ years. Knock on mahagonny.
    [​IMG]
    [​IMG]
     
  20. rog951

    rog951 Member

    Messages:
    5,716
    Joined:
    Jun 2, 2007
    Location:
    DC Suburbs
    Yup, but 1.5 years is an awfully small time segment to view for investment purposes. Look back 10 years and I bet the result is much different. Hey, my opinion is worth exactly what the OP paid for it, but it sure seems to me like GOOD '50s wood will continue to trend positive. Still, I wouldn't personally invest my kid's college fund in vintage guitars...unless I can build that friggin' time machine!
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
    Dismiss Notice