Investment guitars

ratrap

Hey guys if you were going to sink say R15 to 20K into a guitar which would hopefully appreciate with time (long term) what would you buy?

Bob-Dubery

The almost guaranteed performers are limited edition Gibson electrics and Martin acoustics. I wouldn't expect to see those at sub 20k though.

I'd think that any good solid wood acoustic must appreciate in value, but whether or not it would outstrip inflation or the stock market is another matter. Some late 60s early 70s Yamahas might do OK in the same way.

If you can get your mitts on an acoustic with legal (certified) Brazilian rosewood back and sides you're probably on to something.

VellaJ

Fender American Standard Stratocasters are highly sought after on the vintage market, especially the limited edition colours. American guitars in general usually appreciate (provided they come from a reputable company). Anything made in the East (especially China) is unlikely to appreciate like American guitars, if at all.

---mario---

inconsiderate of price: any well known lutheir's handmade creation coz there will only be so many guitars to ever have that luthiers name on it, but we're talking big bucks then. To mention one in S.A. there is Marc Mainguard wich many years ago got his hands on a fine pile of Brazilian Rosewood (had to sell quite a few posetions to aquire this if I remember reading correctly) and uses this along with other exotic woods and is also rated highly by some top musos who have used his guitars, his details are in the luthier thread

---mario---

or you could buy a R5000 guitar and use the rest to make a famous muso drunk, have him play it for you and then your sorted ?

singemonkey

The thing to realise is that not all Gibson and Fenders are created equal. At the moment their guitars that are actually affordable that are appreciating are their formerly reviled '70s models. If you can get a popular model with all original parts it's very likely to increase in value in the medium term. Will the post 1980 models increase in their turn? Two factors speak against it for me:

One, no one famous played those guitars. In the '70s people like Randy Rhoads and Mick Ronson played '70s Gibsons, and in the '80s Zakk Wylde played '70s Gibsons. But the age of guitar heroes is mostly over. And it's hard to associate anyone with a post 1980 Gibson or Fender.

Secondly, they're now truly mass-produced - in a way that they weren't in the '70s. There's really no shortage at all of '80s or '90s Gibson and Fenders. And almost all of them sell, in real terms, for less that they were bought for. No one goes, "Ooh! A mint 1994 Les Paul. That's worth more than a new one!" They go, "Hey. An old guitar in good nick. I'll give you 75% of the price of a new one."

Bob-Dubery

If you're going to lay out some serious cash on a guitar as an investment then do your homework first. There is no doubt that guitars can perform as an investment, but you do have to know what to buy.

The guitars that used to look like a real bargain to me are Lowdens. You could get 2nd hand Lowdens at... well not exactly for free but at pretty good prices considering the quality of the instrument. BUT there is a little bit of a problem because the factory has moved around so much and George Lowden has had various degrees of input and oversight (and effectively lost control over the brand completely at one point). This has rattled the market somewhat and you need to know what Lowden you are buying, what factory it was made in, what colour the label is blah blah. Since 20something George Lowden has had total control of the brand and the entire production is now under his control. Those are fabulous instruments and it looks like the price of 2nd hand guitars out of the current factory is starting to go up - so I may have missed that bus ☹

So do the homework. Martins (except maybe the budget DX line) tend to appreciate in value, but some, usually the limited editions and the Brazilian rosewood models, do rather better than others.

The other problem is trying to navigate that market yourself. If you do have, say, a '58 Les Paul then trying to get a good price without using one of the established vintage guitar dealers may be difficult. They are the guys who know where the big money collectors are (and who know exactly how much your guitar is worth). I am not accusing them of being unethical, but they will want a piece of the action.

Finally learn what the buyers look for. This governs what you need to disclose to them and what you need to protect. An example is original Gibson Mastertone banjos - they nearly all have had a neck repair by now but that needn't effect the price too much as long as the repair is disclosed up front. What is CRUCIAL on those instruments is the tone ring and the buyer will want that to be in good condition and unmodified.

[deleted]

Here are all the investment guitars you need (they ain't R20k, more like $20k)

www.dreamguitars.com

Are you planning on buying to sell one day?
If you are... there are easier ways to make money ?

aubs1

Brentcgp wrote: Are you planning on buying to sell one day?
If you are... there are easier ways to make money ?

+1 ..... I would never invest in guitars and such for the sake of investment ....... the risk is just too high, insured or not!

Dinosaur-Snr

I recently saw a You tube video clip where they were auctioning a 57' Les Paul Gold top. If I remember correctly It went for over $140 000. Crazy stuff. Would love to get one of those babies ?

vic

Good and fair comments from Singe, Bob and Aubs....for R20k you're not gonna get an investment grade instrument. Maybe if you're lucky and some old lady sells her late hubbie's '57 Goldtop together with his tools and lawnmower at a garage sale on a Saturday morning. This may just happen...the story about the '60 Les Paul bought from an old lady is still fresh in my memory...remember..?

The issue about appreciation is straightforward, but also complex at the same time. What an investor wants is that his/her investment must outperform the average inflation rate over at least a 10 year period (medium term)...the Q now is... "what is that rate gonna be over the said time period" ...and nobody knows ! So in practice you take a calculated risk, make the investment and evaluate after say 5 or 10 years.
Most, if not all modern guitars will return at least what you've paid for it after 10 years...but will it have beaten the average inflation rate ??
Just to give an example...if you pay R30000 in 2011 for a guitar and the average inflation rate is 6% over a 10 year period, that guitar must return at least R53725 after 10 years for you to be square in real terms.

However I will happily invest R30k in a nice guitar and enjoy it...and not worry about its financial return in x number of years. ?

Keira-WitherKay

Brentcgp wrote: Here are all the investment guitars you need (they ain't R20k, more like $20k)

www.dreamguitars.com

Are you planning on buying to sell one day?
If you are... there are easier ways to make money ?

i'm with brent here guitars are not great investments and much easier ways to make money ...and of course guitars can be stolen ..............so any value wou;d have to include insurance fee's over the years

and you don't have enough cash to even buy a descent top of the line new model , or a great luthier made instrument ........ and remember guitars values are perceived value.you may have guitar X that is valued at $xxxxx but will someone actually pay that for it is the question........

HOWEVER ...... if you have that amount in cash .i would trawl all the pawn shops and 2nd hand dealers and buy up any gear of value you found and maybe resell it .like i know aja picked up a JC120 amp for a steal at a pawn shop recenty , and i also bought lots of guitars which i could easily resell for more than the buying price so in effect had huge returns .but that takes time and a knowledge of gear and what is a good 2nd hand value........ cos again if you buying to sell you have to still buy cheap enough you can mark it up and still make it attractive for the buyer ,,,,