Guitar as an Investment?

Construction and repair of Classical Guitar and related instruments
GG Guitar

Guitar as an Investment?

Post by GG Guitar » Fri Sep 29, 2006 2:27 pm

Hi All

I know this probably turns off a few of you who buy guitars purely for love, but some of us need to have more earthly concerns! :wink:

I can't afford to SPEND a large amount on a guitar (i.e. on the understanding that it will depreciate at a rapid rate). If however there was a top end guitar (I'm thinking Smallman etc.) that would hold it's value or appreciate in value, then I could justify a purchase.

Which guitars do you think are most likely to fit the bill? Obviously my main reason is to get my hands on a beautiful instrument, so I don't want an ancient instrument that is worth a lot but is not particularly good to play or listen to.....

Suggestions please! :)

arons

Post by arons » Fri Sep 29, 2006 2:46 pm

Look into having Darren Hippner build you one, or try to locate one that someone is selling. As far as I'm concerned, my Hippner is appreciating in value every day.

Or, look for any up-and-coming luthier who can't justify exorbitant prices yet because he or she does not have much track record, but who can produce an outstanding instrument. Your investment will appreciate, and you will have a fine guitar in your hands.

Best,
Aron

Derry

Post by Derry » Sat Sep 30, 2006 11:16 pm

watching them for many many years has indicated some get hot and then fall off and another name takes its place,, also depends on who is famous and what name are they playing,, I looked at Ramirez best in the early 1970s,, if I would have purchased for $900 then I may be able to get 3 to 4K today if it was still in decent condition,, that would be a good return but is still a small amount of money unless your buying 30 to 80 instruments,,

also how long do you want to wait and what % return are you expecting on your total investment,,

my investment is my time learing the instrument and the enjoyment returned,, if I make a penny or two down the road when (if) I decided to sell then that would be fine also,, if not then I have seen far more return on my investment than expected,,

Robm

Post by Robm » Sun Oct 01, 2006 3:08 am

GG, I have to support Derry on this; one either trades guitars or plays them! (accepted that all of us would usually want to get the best price for a used guitar). A $10,000 guitar bought today if played normally will attract the normal bumps, scratches and wear you'd expect but it might still sound and play well after 10 years. After 10 years you might take the view the the guitar is fully depreciated - it has given you enjoyment over this time but may be beyond its use by date - it has cost you $1,000 a year for its use, but that is what it was bought for: any return is a bonus that helps offset the price of the next one.

Mark S

Post by Mark S » Sun Oct 01, 2006 8:23 am

Guitars, like art, are not a good investment. If you want an investment, get a financial advisor and build a balanced portfolio. I am an antiques dealer as well as a guitar player, and always tell clients not to buy art for that reason. It is very much subject to fashion; so the guitar that everyone wants this year in ten years may not be anywhere near in as much demand and the price will drop. I've seen this happen with the art objects that I sell. My advice is to buy the best quality instrument you can afford and whose sound and playing characteristics you really like; and preferably not new, since new ones always depreciate right after they're sold. A good instrument may not appreciate, but it will hold its value, and you will have the pleasure of using it until you decide you want something different.

GG Guitar

Post by GG Guitar » Sun Oct 01, 2006 2:13 pm

Thanks for your thoughtful responses. To be honest, you are all confirming what I suspected - i.e. it is an unpredictable market.

My aim was avoidance of depreciation rather than appreciation, but of course there are no guarantees.

If you had £5-10k ($10-$20k) to spend on a guitar today, which guitar would you expect to depreciate least? Of course this is a guessing game, but I am interested to hear any opinions. :)

slipz

Post by slipz » Sun Oct 01, 2006 4:49 pm

Interesting topic - Personally I usually buy used guitars - New owners really do absorb a lot of instant depreciation - Buying used guitars may not make you money but it can lessen your out of pocket expense

You can also consider that if the guitar is improving your life on a daily basis that has to be worth something - If I have a guitar for two years I'd have no problem selling at a loss - For $20 per month rent over two years that's $500 - Fair rent to have something wondeful in my life for less than 68 cents per day

Now on a new guitar $500 may not cover things but on a used guitar it seems pretty reasonable

hyz

Post by hyz » Thu Oct 05, 2006 5:02 am

i think buying guitar from a reputable luthier will certainly be a good investment.... particularly for those luthier who has a long waiting list. i remember the booking price a year back for a Hauser us different from today. that means by the time you got your Hauser, the price will be appreciated more!!!

may be is a good idea to just book a Hauser and try to sell off when your turn is come and make some profit.... any thoughts???

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