Who here REALLY invests in guitars?

Discussion in 'Guitars in General' started by lightningsmith, Oct 20, 2008.

  1. lightningsmith

    lightningsmith Member

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    As in, instead of buying insurance plans, properties and other investments, do you buy guitars as actual investment assets?

    Does it pay off or it's as unstable as the rest?
     
  2. greuvin

    greuvin Member

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    I do and it does (pay off, that is).
    :)
     
  3. Scumback Speakers

    Scumback Speakers Gold Supporting Member

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    I do...and my wife has joined me in it since her 401K ain't worth what it used to be.
     
  4. AjayTele

    AjayTele Member

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    I have a large collection and guitars and gear, which also is an investment now. Given the recent issues with stock markets and real estate, it has become obvious that having a reasonable sum of money tied up in tangible assets is not a bad idea.

    I would note that I don't have many genuine "vintage" instruments, rather I have a lot of lower priced items that are easy to sell and are not likely to devalue if the market crashes even worse than it has already.

    My feeling is that the high value vintage guitar market, while it has had some spectacular rises in value, can also crash spectacularly, indeed there is already some evidence of vintage guitar prices dropping as people get margin calls and have to firesale other assets to get some liquidity.

    Probably a good time to pick some bargains...:)
     
  5. XKnight

    XKnight Member

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    I don't invest per se in guitars, but I rarely lose any money when I sell and have definitely made more than I've lost in the long run. The buy low, sell high principle works just as well with guitars as it does with stocks. The key of course is knowing what a low price is.
     
  6. sonhenry

    sonhenry Member

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    I don't know if you'd call it investing, but my wife is gonna have one hell of a yard sale someday....
     
  7. jimmybcool

    jimmybcool Supporting Member

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    Bingo. I believe owning quality instruments will pay off down the line. BUT, the insane prices of some of the vintages can crash and burn just as fast as they rose. In fact, I would expect it if the stock market and other investment markets tank.

    I expect to see some decent bargains in used guitars in 2009. Not to appear ghoulish but 2009 is probably not going to be a very good year for a lot of people financially. Many people will be forced to sell prized possessions and there will be fewer buyers. Prices will drop.

    I know I will keep an eye out for midrange collectibles in the $2000-6000 range for 2009. Maybe pick up another PRS with braz neck and who knows.
     
  8. smallbutmighty

    smallbutmighty Supporting Member

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    Not high dollar stuff, but I've made more money investing in effect pedals that anything else. The pedal market is just goofy that way.

    ac
     
  9. studiodunn

    studiodunn Member

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    speaking of, is someone gonna step up and snag that braz burst R0..$5k.....OMG!
     
  10. Boris Bubbanov

    Boris Bubbanov Member

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    Let me approach it a different way. Just over the last few years, the value of the mutual fund was about to go really bad, the real estate already has, inflation is chewing away at the cash in the bank. Suddenly, non investment grade guitars + amps, in new condition, bought at very low prices doesn't seem so wacky.

    You know what, the guitars + amps are fun, the stocks never were.

    Let's just call it "diversification".


    Bubbanov
     
  11. playon

    playon Supporting Member

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    I've done it, both short and long term. My Dad always was trying to get me into mutual funds, etc but I stick to what I know, and given the current conditions I'm glad I did.

    Some stuff is trendier than others... the rock n roll stuff can be a bit volatile and it's also easier to fake... I prefer old acoustics.
     
  12. The Captain

    The Captain Supporting Member

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    Investing in guitars is investing in myself.

    I do, and it does.

    Does that count ?

    Money in the bank ?? What's that ?? I have have a wife who breeds horses. My attitude is, if I don't spend it first, she will. Her annual hay bill alone will buy me a premium guitar or amp a year, which does not mysteriously turn into hair and ****.
     
  13. whitehall

    whitehall Member

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    I find it's a great compliment to my paper investments. A few years back instead of making a 2000 contribution I bought a New Gibson. I didn't get the tax write off but the enjoyment factor could not be measured. Since then I have bought a few more Gibsons, nothing ultra vintage, just guitars I like to have. I find it to be an excellent investment. This works with pretty much any American guitar. The Gibsons I saw on ebay in 2001 have all doubled in value- and I'm a lefty- so it's a good bet. OTOH, All the Japan copy guitars I bought- Orville, Tokai, Greco, Burny have lost value in that same time frame.
     
  14. greuvin

    greuvin Member

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    The early higher end Tokais and Burnys are still holding value and still appreciating in some cases. They are so rare, they don't fit into the run of the mill MIJ stuff.
     
  15. greuvin

    greuvin Member

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    :rotflmaoI hear ya. My wife is also an "equestrian". Biggest waste of $$ I've ever seen. Worse than owning a boat! :D
     
  16. snarkle

    snarkle Member

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    I use the term "investment" as a smoke screen for the fact that I like guitars. It's nice that some of my pieces have appreciated considerably, but I would have bought them anyway, just for the enjoyment they afford me.

    On the other hand, when my ex and I spilt, her stock holdings were worth about the same as my guitar collection...but those stocks have lost at least a third of their value, while my guitars are holding pretty much steady.

    Not gloating...just the truth.

    Well, maybe I'm gloating just a little bit...she was always after me to sell the guitars!
     
  17. whitehall

    whitehall Member

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    Not in this country. I've been through all that MIJ stuff for a long time. I still buy one now and then. Tokai is the Ford of Japan.
     
  18. CharAznable

    CharAznable Member

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    That's how I sell it to my girlfriend. I made sense for her once I showed her the numbers.

    And I love relics: I get to play the hell out of guitars and they don't lose value :D
    Stocks don't have that advantage
     
  19. greuvin

    greuvin Member

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    Maybe the later stuff is all too common, but I was referring to, for example, anything equal to or higher than an LS-100 made before '82.
     
  20. jeffwith1f

    jeffwith1f Member

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    I partially justify the ongoing expense of spending money on gear by thinking "it's an investment". I'm don't really have the cash to be in the real money stuff, but I'm on a roll of only buying guitars that seem to at least hold thier value, if not go up (although it sounds like 2009 may be a year that sees the value of the collection take a hit)

    I like that when I spend money on a guitar, I don't think of it as spent per se, just transformed into a less liquid asset. That being said, I'd be hard pressed to sell any of them at this time (touch wood) as such, they are effectively valuless from a monitary point of view.

    If I'm not thinking of them as a tool (being a musician) or an investment (as someone spending considerable monies on them) I think finally I think of myself as a curator, taking care of these works of wood and metal.
     

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