The guitar as an investment

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Krokmou
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The guitar as an investment

Postby Krokmou » Mon Mar 20, 2017 12:10 pm

Hello,

As a guitarist, if you would have a certain amount of savings, would you consider investing on a classical guitar from the most reputable luthier (Friedrich, Field...) instead of putting your money on the bank and winning x% per year ?
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petermc61
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Re: The guitar as an investment

Postby petermc61 » Mon Mar 20, 2017 12:14 pm

Only is you accept some risk and then only with instruments that are truly collectable. If don't regard either of the luthiers you mention (though favourites of mine) as truly collectable. In that category I would probably only place Torres, Hauser 1 and Bouchet. For the rest I don't think you can necessarily be confident your investment will outstrip inflation.

souldier
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Re: The guitar as an investment

Postby souldier » Mon Mar 20, 2017 1:09 pm

Guitars serve as poor investments, even though they can last very long if taken care of. If one buys a guitar I think it ought to be to enjoy and play them, rather than as a financial investment. In most cases you'll lose money on the resale of a guitar even if made by a highly respected luthier, unless you got it at a notably cheaper price. The CG market is extremely saturated with a tonne of options, making it more difficult to sell a guitar.

As Peter pointed out, a "truly collectable" guitar is probably one with very special historical significance that holds value in the same way that a painting by Van Gogh would hold value. Even then, I'd rather invest my money in something that more consistently increases in value like property or mutual funds.
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edcat7
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Re: The guitar as an investment

Postby edcat7 » Mon Mar 20, 2017 1:31 pm

I think the best most of us have is buy second-hand, enjoy it for a few years and sell at roughly what we paid for it. Occasionally I see guitars for sale, bought from other forum members but at an increased rate. These tend not to sell until the vendor has dropped the price to roughly what he paid for it in the first place.
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zupfgeiger
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Re: The guitar as an investment

Postby zupfgeiger » Mon Mar 20, 2017 1:57 pm

I have purchased a lot of guitars during the last several years, all between 4000 and 10 000 Euro. Re-sold most of them sooner or later. Mostly without any loss compared to the price I payed. But rarely with profit as well. It's just the joy playing excellent instruments, not any hunt for money I am out for.
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CathyCate
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Re: The guitar as an investment

Postby CathyCate » Mon Mar 20, 2017 2:11 pm

"Investment" serves as great rationalization for a guitar purchase in the same sense that it was popular to talk about "investment" designer clothing a few years ago. Helps cut down on the guilt factor, but ultimately does not improve the bank account.

Now good violin bows...that's another story :D

Number 6
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Re: The guitar as an investment

Postby Number 6 » Mon Mar 20, 2017 2:52 pm

Guitars are not investment items. You may have have better luck throwing your money in the river and see how much money comes back to you.

eyedoc
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Re: The guitar as an investment

Postby eyedoc » Mon Mar 20, 2017 4:54 pm

The only time you want to talk about classical guitars as investments is when you are telling your wife you are getting (yet) another guitar!

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Steve Ganz
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Re: The guitar as an investment

Postby Steve Ganz » Mon Mar 20, 2017 5:42 pm

If you are thinking only of monetary investment and return, it totally depends upon the particular guitar.

If you have, say, $50K to invest and are looking for a good ROI, try real estate.

On the other hand... If you had bought couple of Torres guitars that came on the market 30 years ago, your return would be significant. Probably about what the real estate investment would yield.

If you are investing in guitars because you love them, the return can be an order of magnitude more. Not $$.
Steve

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robin loops
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Re: The guitar as an investment

Postby robin loops » Mon Mar 20, 2017 5:56 pm

A guitar owned by a famous player can be a good investmen BUT usually by the time you know a payer will be famous enough to make a guitar they owned valuable, they will already fetch high prices. The trick is to know who will become more famous as time goes by. And like most investments involves a bit of a gamble.
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Adrian Allan
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Re: The guitar as an investment

Postby Adrian Allan » Mon Mar 20, 2017 6:02 pm

You will probably not make a profit, even if you buy second-hand.

However, it is worth remembering that many items hold their value much worse than a guitar - such as a computer or a car, so think of it as buying something that will give you lots of pleasure, that you can trade in without suffering a ridiculous financial loss.

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Re: The guitar as an investment

Postby Adrian Allan » Mon Mar 20, 2017 6:03 pm

petermc61 wrote:Only is you accept some risk and then only with instruments that are truly collectable. If don't regard either of the luthiers you mention (though favourites of mine) as truly collectable. In that category I would probably only place Torres, Hauser 1 and Bouchet. For the rest I don't think you can necessarily be confident your investment will outstrip inflation.


How about Fleta, do they still command very high prices?

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Beowulf
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Re: The guitar as an investment

Postby Beowulf » Mon Mar 20, 2017 7:33 pm

Even guitars owned by famous artists do not guarantee good investment potential: Liona Boyd has three of her concert instruments available for sale at what appear to be reasonable prices. No signs of action on these offerings.
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petermc61
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Re: The guitar as an investment

Postby petermc61 » Mon Mar 20, 2017 8:56 pm

Adrian Allan wrote:
petermc61 wrote:Only is you accept some risk and then only with instruments that are truly collectable. If don't regard either of the luthiers you mention (though favourites of mine) as truly collectable. In that category I would probably only place Torres, Hauser 1 and Bouchet. For the rest I don't think you can necessarily be confident your investment will outstrip inflation.


How about Fleta, do they still command very high prices?


Yes, they command good prices. You are unlikely to lose your money. I don't know whether you will necessarily achieve a real growth in value though. I would certainly never invest in one on that basis.

In the past 5 years though I suspect (from my observations from an admittedly limited data set) that Torres and Hauser 1 seemed to have tracked up maybe 50-100% in price.

Peter

Guther
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Re: The guitar as an investment

Postby Guther » Mon Mar 20, 2017 10:25 pm

eyedoc wrote:The only time you want to talk about classical guitars as investments is when you are telling your wife you are getting (yet) another guitar!


I like that strategy, Ron, even if it lands us in the dog house for a bit :evil:
Guther


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