Guitars are versatile instruments that are fun to play. They make you feel superior to others when you learn how to play, and they can appreciate in value over time. But are guitars a good investment?
If you are interested in guitars, investing your money in this area may not be a bad idea, but no one has become a billionaire by investing in guitars. However, if the idea is to play the guitar and hold it for a long time, you would want to spend money on maintenance and repairs.
Do not invest the last of your savings in guitars to save your home from foreclosure. Guitars are not a reliable investment, but they are fun, so if you already have the desire to collect, investment can be one feature you consider.
What Makes a Guitar Valuable?
What makes up the value of a guitar? Rarity, celebrity association, the materials used in construction, the brand name of the manufacturer, and the quality of workmanship would probably be on top of your list.
The value of a guitar is also determined by how much you like it and how well it matches your playing style. Surprisingly, old guitars that most people do not consider valuable are sometimes given a second look because of their unique characteristics.
The next significant factor is how passionate you are about the instrument. If you are not willing to do everything it takes to keep your guitar in its best condition, the value could decrease over time. Guitars should be stored in proper conditions and be repaired when necessary.
Another crucial factor that affects the value of your guitar is whether it comes with any documents. Original documents can mean a lot to collectors, who may be willing to pay more than the current market price of these items. Some examples include:
• Certificate of authenticity
• Sales receipts
• Warranty information
• Chain of custody
• Repair notes
Storage and insurance are costs worth considering. These costs may affect how much you can earn by selling the instrument in the future.
Figure out why people are willing to pay thousands of dollars for some guitars and find out if you have any guitars which have appreciated in value. The rarer the guitar from a specific year or era, the more valuable it likely is.
Most guitars appreciate in value because they are difficult to find. Certain guitars appreciate value over time because their sound is unique or sentimental to someone.
To determine if you have any valuable guitars, it’s a good idea to investigate and find out which guitars tend to appreciate in value over time. Your chances of finding a valuable guitar depend on the quality of your research and how persistent you are in locating what you want.
When you are out at garage sales or antique stores, you never know what type of vintage guitars you can find. Even if they are not that old, some unique guitars made in the past decade may be worth more than what they were initially priced at. Valuable guitars pop up on sites like eBay and Reverb all the time.
The value of your guitar also depends on how much money people are willing to pay for it. To find out if your guitar is valuable enough to sell, you may want to seek the advice of an expert and get an appraisal.
If a guitar had a limited production run, it would increase value faster. Higher-quality guitars have better value retention. Many of the most valuable guitars play as well today as they did decades ago.
The wood used to build a guitar can impact value. Certain woods are no longer used because it is too complex and expensive for manufacturers to acquire. Brazilian rosewood, for example, became endangered and is not used for guitars anymore. Some collectors do seek out instruments with Brazilian rosewood necks.
Accessories can impact value. For example, many collectors want a guitar’s original case. Some people will specifically ask for the case an instrument came with. Having an original guitar strap or even a brochure from the manufacturer can increase value.
The fact that a guitar is a physical object helps it hold value, unlike NFTs or cryptocurrency. Vintage guitars are considered investments because they are an actual thing that can be sold quickly.
What Are Some Examples of Investment Guitars?
Some guitars are obviously going to be suitable investments. Instruments owned by legendary players like Jimi Hendrix, Eric Clapton, and David Gilmour always sell for hundreds of thousands of dollars. Certain Les Pauls from the 1950s can sell for over one million dollars due to rarity and a legend about their sound.
Fame can impact a guitar’s value. For example, Paul McCartney’s bass sold for $496,000 because it was verified authentic. There is little risk associated with purchasing such an instrument, and some would argue little enjoyment, as well.
The thrill of the hunt drives many collectors, so spending massive amounts of money on a famous instrument does not appeal to everyone.
Pre-1965 Fender guitars are more valuable than the ones made after 1965. CBS bought Fender in 1965 and began to change how they manufactured their guitars and amps. These Fenders are safe investments, but everyone knows this, so they are also costly.
Korina guitars are valuable because few companies use this type of wood. Gibson produced only a handful of Korina Flying Vs and Explorers in the 1950s, and these guitars now sell for up to $1.2 million. These instruments have a desirable combination of extreme rarity, unusual materials, futuristic design, great quality, and excellent sound.
Japanese lawsuit guitars are often good investments. These are copies of Gibson and Fender guitars produced by some Japanese companies in the 1970s. These copies were so spot-on that several lawsuits emerged to shut down this practice. People like owning these guitars because of the fun backstory.
Acoustic guitars made before WWII are often valuable. Martin made all of their guitars by hand, making them more valuable. Some Martin D-45s can fetch up to $400,000.
The chances of finding an extremely valuable guitar are low, but if you keep looking, it’s possible. If you have a guitar that is rare and in good condition, it may be worth more than the current market price.
Basically, guitars are a good investment if you love guitars. If you are just trying to make money, there are safer, easier ways.
Not everyone thinks that valuable guitars are a good investment. While some people believe that vintage guitars are a great way to spend money, others wouldn’t touch them with a ten-foot pole.
It truly comes down to the enjoyment you find in locating and owning certain instruments because there isn’t much point in investing in guitars if you’re not interested in the instrument.