Do you see vintage guitars as an investment?

[Love Tele]

Some people have whiskey or gold or shares as an investment.

There are also people that spread their investments.
Some take wine and vintage guitars. Some can not play guitar at all.


Do you have guitars as an investment?

 

[LocoTex]

Can't afford investments.

 

[Killing Floor]

No.

Think about this, Anyone who is old enough to have gone to Woodstock is 75. How much longer to you believe that demographic has to be interested in and willing to spend a fortune on an old guitar simply for the esoterica of it being from their bygone era? Serious question. Not being mean.

IF 20-30-40 year old people "investors" aren't clamoring to buy pre-CBS Teles (example) THEN the bottom falls out of that artificial value exactly at the moment that 1 buying group stops buying more of that item.

Before any of you takes the objectively wrong approach of replying with "but kids still play guitar", sure they do.
Kids still eat dinner. But they don't buy gold rimmed, floral pattern bone china plates to eat it on.
Kids still drive cars. But they don't wish for a 50s Caddy.
Kids still golf, but Laurie Auchterlonie clubs are worth 10% what they were worth in the 1980s.

According to Hagerty, you can buy a fully serviceable Model T for under $4,000. That same "investment" was 10X that not too many years ago. What happened? The people who cared about Model Ts aged out of the marketplace.

Play what you love. Buy what you want. But the raw force of economics doesn't make an exception for "that ONE thing I like".
Within 10 years Pre-CBS Fender Stratocasters will be nothing more than very old used guitars. Love ya, but it's a certainty.
If you want a vintage guitar, get one. Enjoy it. Within a very short time it will be worth less than it cost you today because the pool of potential buyers who are nostalgically connected to the events that made that instrument collectible AND who are financially able and willing to make that expenditure to own a piece of those events will age out.
Economic certainty.

 

[DavidP]

No...
I have guitars that I play.

 

[FuncleManson]

So, so, so many better (and less speculative) investments than guitars.

 

[Freeman Keller]

Yes, sort of. I'm never quite sure what "vintage" means but I have a number of acoustic guitars both pre and slightly post WWII. They have all gone up in value, a couple dramatically. I keep extremely good care of them (properly hydrated, always cased) and I'm approaching the point in my life when its time to sell them. I'm not going to be silly with my pricing, I would rather see them go to someone who will appreciate and play them, but I am going to appreciate the appreciation.

 

[Andy B]

No. Our guitars and other assorted musical instruments occupy the same niche as cameras and other items that enhance our lives.
I need to add our 1971 Jeep CJ6 to the mix. Though it is quite rare these days, I don't look at it as an investment. Hopefully this year, I will be able to drive it once again.

 

[Holy smokes]

Yep in money ,time and toil. Not a hi return but a heap of fun. An investment in enjoyment

 

[Freeman Keller]

I'll add to the above comment, I've been privileged to own a couple of cars that while they were not bought as investments became increasing valuable as they aged, I'm at the point where I have been divesting myself of them and it is very nice to have the value increase by five or six fold.

Cars and guitars will never be my investment strategy but its nice to see the value go up.

 

[kuch]

No.
I don't buy "vintage" just because they're "vintage".
IMO, good guitars built in the 2Ks can be just as good or better than anything older. "Vintage" is just nostalgia..... if that's for you, that's ok.
I have some quality guitars that have gone up in value in the last 20 years but I don't consider them investments. I picked them up because I like the way they look, play, and sound. I'll definitely get what I paid for them plus inflation and some profit if I ever decide to sell them but I don't really expect to do that anytime soon.

 

[Engine Swap]

Still no.

 

[Mr Ridesglide]

Well, not on purpose really. But I am fortunate enough to have every instrument I own to have gone up in value with little exception. The two exceptions I was aware of when purchased, but felt like I needed them for a job. Basically, if you buy nice things and take reasonably good care of them, you won't lose money if it's guitars, gold, silver, guns; even Hot Wheels. You may not get rich on them, but they typically hold value. Okay, having said that, if I took the rest of the items and had it invested in real estate, I'd be miles ahead.

 

[tonepoet333]

No.

I see the "vintage" guitar market as a modern day "Emperor's New Clothes" story.

Who sets the prices? Answer: People who stand to profit from the inflated prices, such as guitar store owners and/or collectors.

To me, they are simply old, used guitars. Once they become investment instruments, are they getting played or are they placed in a glass case on an office wall somewhere as a status symbol?

$40,000 for an old Les Paul or Stratocaster? C'mon, it's a slab of wood cut out on a band saw in a factory back in the 1950s.

But, to each their own, as they say.

tonepoet,
www.jackshiner.com

 

[BristolKeeno]

No.

I see the "vintage" guitar market as a modern day "Emperor's New Clothes" story.

Who sets the prices? Answer: People who stand to profit from the inflated prices, such as guitar store owners and/or collectors.

To me, they are simply old, used guitars. Once they become investment instruments, are they getting played or are they placed in a glass case on an office wall somewhere as a status symbol?

$40,000 for an old Les Paul or Stratocaster? C'mon, it's a slab of wood cut out on a band saw in a factory back in the 1950s.

But, to each their own, as they say.

tonepoet,
www.jackshiner.com

So is a Stradivarius and they are spendy instruments. Isn't it the quality and scarcity that gives it value?

 

[tonepoet333]

So is a Stradivarius and they are spendy instruments. Isn't it the quality and scarcity that gives it value?

Hmmmm.... a Stradivarius compared to a slab of wood cut out on a band saw is a tough call

As to quality and scarcity, it's all subjective and in the eye of the beholder. The red Tele you see in my photo to the left is a mid-1980s Guild T-250. Only 211 were ever made and it is of high quality, but I don't think there's any highly sought after market for them.

It's all up to the individual, really.

tonepoet
www.jackshiner.com

 

[BlackASATClassic]

Investment, nope.. However, any guitar you can buy today, gig and enjoy for ten or twenty years, and then sell for even a small profit would be one of the least expensive guitars you can own.

 

[john_cribbin]

Everything is an investment, until it isn't ...

 

[sax4blues]

If the value of your guitar category represents maybe less than 5% of your total investments then why not.
But if the investment guitars are a larger portion then you are moving into speculation.
Also if truly an investment are you physically protecting and insuring the instrument to minimize potential loss? Average home/renters insurance may not cover the value fully. So then the cost to protect against potential loss reduces the return. Also what about liquidating the asset? Do you have the knowledge and contacts to move an investment grade guitar for top dollar? If not then subtract another 10%-20% for using a broker, plus potential shipping costs including full insurance again reducing return.
Oh, just remembered, capital gains taxes take another bite.

For me taking any money out of stocks/bonds/real estate/.... to put into a guitar with the hope that some day it out performs more traditional investments seems a lot of work to maybe have a little bigger return.

 

[Dismalhead]

My music equipment has a monetary value and I assume I could recoup a large part that I spent on it if I were to sell it, but no, it's my hobby and I don't consider it to be an investment. Certainly not expecting to make any money off it or for it to increase in value.

 

[pippoman]

I recently read an article on vinyl value and how even in this resurgence in interest in records, the bottom has dropped out of the Elvis market. Why? Because the people who loved him are slowly passing away.

But...
Guitars are tools for creating new art, rather than art themselves, so will they also crash?

Tbh I think when society implodes due to climate change wrecking agriculture and fascism creating global conflict again, guitars will be worthless
So enjoy them while you can

Aaghhh! ‘scuse me while I kill myself.