Guitars as investment

Discussion in 'Guitars in General' started by Brad Hodges, Sep 10, 2018.

  1. Brad Hodges

    Brad Hodges Member

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    OK so 40 years ago I got my first job, working at this funky guitar parts manufacturing company in Van Nuys CA. I never thought about guitar's much since then, until I learned that the guitars we made then are now very collectible and expensive Van Nuys Schecters.

    I have some spare cash and was wondering, what if I bought some TAGs, and put them away in a closet, for 40 years. Think they'd be worth substantially more by then?

    I won't live that long, but I'm pretty sure my wife has another 30 years, and the guitars would be able to live in a dark closet in a temperate climate (no A/C) at least as long as she lives.

    I have some young challenged relatives that could use a little 'nest egg' for later in life.
     
  2. FennRx

    FennRx Member

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    Put your money in stocks, not guitars
     
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  3. Brad Hodges

    Brad Hodges Member

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    I'm set with stocks and income property, I'm retired. I'll take that as a 'no' though, i.e. very little chance they will appreciate.
     
  4. gixxerrock

    gixxerrock Member

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    You can buy used, quality made gear. There is a good chance you can play it is as long as you live and sell t for what you paid for it. It may even track inflation.

    Unless you have a magic time machine or crystal ball, stocks are much better investment.
     
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  5. grapeshot

    grapeshot Supporting Member

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  6. FennRx

    FennRx Member

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    buy a burst since you’re rich and retired
     
    Last edited: Sep 10, 2018
    Blanket Jackson and stratter like this.
  7. tonegangster

    tonegangster Silver Supporting Member

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    Why not stick with what works for you?
     
  8. HelloKittyHawk!

    HelloKittyHawk! Member

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    No.
    Great as those guitars are, there's such a glut of very well-made guitars being produced today, that it's extremely unlikely that they'd be a wise investment. Very few guitars being made now are, especially in light of the waning popularity of the guitar, culturally.

    I love Van Nuys Schecters, and have several, but I'm also fifty, and I've got a lot of nostalgia for them, from when I first started playing, back in their heyday. Like a few others on here, I follow the sale of every interesting VN Schecter that pops up, and -more often than not- I know the person who ended up purchasing it! It's a very small community, it turns out - at least in the United States. In Europe, an enduring obsession with Mark Knopfler appears to drive a community of enthusiasts, a few of whom have very deep pockets and a penchant for highly competitive bidding, it seems.

    As the generation that really prizes vintage guitars dies off (me excluded - I'm going to live forever!), I think that all but the blue chip, perennial holy grails ('58-'60 'Bursts, blackguards, Pre-CBS Fenders, Pre-War Martins, etc.) won't retain their value. They certainly won't continue to rise in value at the rate that they have.

    Even though "Golden Age" vintage electrics were produced in great quantities (especially after The Beatles invaded living rooms, via The Ed Sullivan Show), they weren't regarded as potential collectibles for quite some time, during which many were heavily modified, damaged, or seriously mistreated - eventually making the pristine survivors more valuable, with that perceived value trickling down to their "player-grade" counterparts, for all those who lusted after the grails, but found them out of reach.

    Nowadays, all of the major manufacturers market certain models as investments, but -unless you happen upon one at an absolute steal of a price, I would say that the guitar-as-investment concept is one whose time has passed.
     
  9. Bodeanicus

    Bodeanicus Member

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    Pretty much. There's still money in vintage guitars, but not like it used to be. Guitar isn't as out front as it was.

    It's always been an exploititave market, like old cars, or art, or baseball cards, or polished rocks in gold, whatever. If you can make guaranteed profit, go for it. But don't depend on it.

    Who's the guy on Youtube who flips guitars, and makes really good, in depth videos of his pieces, complete with black light inspection (ew)? Trog something? He and Grove are the only two big flippers I,know of, and I don't know **** about it.
     
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  10. Presc

    Presc Member

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    No, generally. Something pretty unlikely would need to happen to create the right supply/demand imbalance - for example - TAG stops production, and a Mayer-level popular player starts using their gear. And even then, you'd right need the "right" TAG.

    Out of curiosity, how much does a Van Nuys Schecter go for these days versus original price? Just food for thought - if a guitar purchased for $1,000 in 1988 is worth $4,500 today, that's actually only a 5% return on an annualized basis. Not a very good investment given the low likelihood it would even appreciate at all at the time of purchase.
     
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  11. BigDoug1053

    BigDoug1053 Supporting Member

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    If you follow my example in this life full of guitars, you will buy high and sell low.
     
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  12. Benz2112

    Benz2112 Supporting Member

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    You should have a diversified portfolio... horde a bunch of amps to go with your horded guitars.
     
  13. wox

    wox Supporting Member

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    Almost no guitars on the market today will ever double in value, forget 10x, and I bet the pieces that do double in value will be the unexpected cult gear that gains a following because a certain artist used it and it's out of production.

    The majority of higher priced vintage pieces will drop or flatline over time.

    Dollar cost average your money into market index ETFs, gold ETFs, whatever.
     
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  14. RICFREAK

    RICFREAK Member

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    A guitar is worth only the value of what any buyer is willing to pay at any point of time.
    If there is no demand for that particular guitar, it is as good as firewood.
    Collect as a hobby is OK, but never as an investment...... just my 2 cents;)
     
  15. Frozen Rat

    Frozen Rat Gold Supporting Member

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    Tesla is cheap right now, buy that. I'm thinking about jumping back in on that one. Even if Musk continues to act like a psycho that stock will appreciate more than any guitar likely will.
     
  16. Jon C

    Jon C Silver Supporting Member

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    It's a purely speculative investment.

    So many better choices.
     
  17. ToneDeVille

    ToneDeVille Member

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    The peak of investing in guitar is long past. You missed it by about 35 years.
     
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  18. 98G2PRU

    98G2PRU Member

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    Depends on what you buy. I could have bought a 57 BB in the early 80s for $1k. What would that be worth today?
     
  19. until

    until Member

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    I would stick to high quality dividend stocks if I were looking for good investments.

    Guessing which guitar will be the next 59 burst is a total crapshoot.
     
    Killed_by_Death likes this.
  20. jwguitar

    jwguitar Supporting Member

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    Its really hard to predict what guitars will be desirable in the future. I think its kin of funny that the old Korean Epiphones are retaining their value as well as they are. Those guitars were just ok then and just ok now. Its the new Korean stuff that is really good that makes people think all of the Korean guitars were always good!
     

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