Do you love guitars? If yes, then you must be looking forward to investing in one. But are guitars a good investment?
Guitars are a good investment if you understand the market for them. Various guitars (primarily vintage) hold their value and give a possibility of making a handsome amount of money. But being a long-term investment, some factors could affect your investment return on guitars.
If you want to get more clarity on whether or not investing in guitars is a good idea, then make sure to read till the end.
Guitars are a very safe investment, as compared to stocks and shares. Factors such as rarity and quality will determine the investment value of a guitar. Furthermore, the models used by prominent musicians are the most sought after and increase in value over time.
Do you want to know why guitars are a good investment? If yes, then here are some facts you should know.
The guitars in your collection are a physical asset on hand right in front of you. That provides a sense of security that your investment is safe from theft, fraud, and any other mishap.
Other than that owning and playing a rare guitar has its own thrill. After imagining which songs were played on it and who played it, which is an exciting feeling.
Although predicting the performance of any investment is nearly impossible due to volatility. However knowledge of the music industry and guitar market can help you predict whether your guitar will be worth more in the future.
Compared to a volatile stock market, the guitar investment market is much more stable. Just like that, a stable and predictable market is ideal for a long-term investment.
The steady growth of your investment over an extended period is much more reassuring than a volatile stock market. And you have peace of mind that your investment is not worthless in the long term.
Increasing your chances of making a profit by investing in a diverse collection of guitars is possible. You can do that by researching the market and vintage guitar price indexes. Then add those guitars to your collection, which would increase their investment value in the future.
You can diversify your vintage guitar collection by adding a Gibson Les Paul, a pre-1965 Fender, and a guitar once owned by a famous musician. By doing so, you can guarantee your chances of making a good investment.
Commonly vintage guitars are the most sought after by collectors because they increase their value each year. Apart from that there are some factors that make a guitar increase its value. So lets find out what are those factors that sings “money”.
Guitars owned and played by legends are always in demand and increase their value big time. In 2015 John Lenon’s 1964 Rickenbacker was sold for $ 800,000.
Similarly, suppose you can get your hands on a guitar played by an upcoming star. In that case, the guitar will surely increase in value.
It will be deemed rare when a popular guitar model is produced in limited numbers. The rarity will increase its value over time, making it a hot item for collectors.
If you had a chance to own a rare undamaged guitar, then the chances of making a solid return on your investment are high.
On top of that, limited edition guitars from known brands are also collectible items and mean a lot to investors and collectors. Brands such as Gibson and Fender are well known and have produced all-time classic guitars, most of which are limited edition.
Guitars are worth a lot more that have original accessories than those without them. A Guitar should be with hangtags and case candy, original wiring, original frets, original finishes, original tuning machines, original cases, and receipts.
Another factor that could increase the value of a guitar is its known history or paperwork. It could be, for example, a guitar played by a famous musician for a band or at a concert, a signed guitar, or anything similar.
Pre 1965 Guitar models are popular among collectors, and these guitars are increasing their value each year. Among other guitars, Gibson, Fender, and Martin are the most sought-after pre-1965 models.
A guitar with a Korina wood finish will be expensive because it is a rare type of wood. Korina wood originates from Africa and is hard to work with, which is why not as many guitars are made with it.
Previously a 1958 Gibson Korina Explorer was sold for over a million US dollars.
There are many guitars out there that are increasing their value with each passing year. But do you know which guitars are a good investment? Let’s briefly look at some of the best models to own as a future investment.
Pre 1965 Fender Guitars
Before 1965 each Fender guitar was handmade, which made them unique. Pre-1965 Stratocasters, Telecasters, Jazzmaster, Mustang, and Jaguar, are increasing their value.
Japanese Lawsuit Guitars
In the 1970s, Japanese guitar manufacturers started to produce exact replicas of Gibson and Fenders. After being threatened with a lawsuit, they changed their designs to make their guitars different from Fenders and Gibson models.
The original 1970 Lawsuit models are also increasing their worth.
Pre WWII Martin Acoustic Guitars
Martin Acoustic guitars made before WWII are considered rare and high quality. Along with that, their great sound and use by famous musicians increase their value.
- Guitars Played by (upcoming) legends are ever increasing their value.
- Guitars that were made almost 30 years before are also increasing their value. It was the golden age of rock and roll three decades ago.
Although investing in guitars is a good idea, there are potential disadvantages to it as well.
- Highend investment guitars require large amounts of money.
- It requires more than one guitar in your collection for a good investment.
- It’s not easy to sell your guitar quickly as it might take time.
- The market for selling high-end collectible guitars is small and requires the right buyer to show up.
- Guitar prices can plummet if the same models are for sale in large numbers.
Guitars are a good investment if you know the guitar market inside out and want to invest long-term. Selling your guitar collection can take a while and requires the right buyer as the market is relatively small.
Meanwhile, your guitar collection increases its value; you can enjoy playing your favorite songs. You may not be able to play it like Jimmy Hendrix, Eric Clapton, or Jimmy Page but imagine the thrill and excitement.