I am small fry to you, I have about 40 guitars and I only have a few PRS, GIBSON, FENDER custom shop. I have spent about 52K Singapore dollars on guitars and gear. If I was to sell it all now I would expect to get about 62K Singapore dollars. So made a profit of 10K. But selling what the going rate is not easy. You have to find the right buyer at the right time and this can take a long time. I always told my wife they were an investment, although truth be told I really didn't see them as that. I did leave notes on how much they were worth if I passed away etc. However, my wife past away a few years ago. But I do recommend anyone who spends a lot of money on GAS let their wifes know what the true value is.
I fully agree. Time to find the right buyer is what makes it illiquid and not a traditional investment And yes on letting your spouse know the value. That’s why I keep that sheet
I don't really buy to invest, I buy because something is super interesting to me as a collector / player. This has definitely proven to be a good strategy despite my general stance of always buy - never sell.
A good way to think about it in traditional economics terms, is that guitars are tools. Musicians put labor into them in order to create something of value, either social (jam with friends) or fiscal (record a song, live performance, teach lessons, monetized UA-cam channel discussing guitar trends). Tools typically depreciate in value; there’s only so many times a spindle can be used to make yarn before it breaks, and every use reduces future use value. So a tool like a guitar, in order to counter that depreciation, needs to gain in cultural significance. Predicting what’s going to gain in cultural value, that’s tricky. Gibson and Fender are big now because Gen Xers and boomers want the guitars they thought were cool when they were young, but the youth of today may, when they hit middle age, see those as their grandparents’ guitars and seek something else of their youth culture like maybe Strandbergs. So you have to be on top of things but also check your sentimentality and biases at the door. Also, I’ll end with a bad pun inspired by this video: to hedge again Bretton Woods, buy Gibson goods.
Haha nice. I would agree with a lot of what you said. What I would add is guitars don’t really wear out and to whatever extent they do, it is relatively cheap to fix ( new strings) barring re fretting of course but that is few and far between.
I bought 1 set of drums in ‘07 and have used them exclusively since. So all the gig money I’ve made since then has well covered my investment into a good kit long ago. I don’t gig on guitar but I own several for recording purposes. I did in fact inherit a valuable guitar though. A ‘61 Les Paul Jr., the SG shaped one. I even have the original alligator case. There’s only one problem; I can’t play it much really. Because, I play lefty handed guitars due to physical limitations. But, I keep the guitar as an heirloom and a hedge.
By the way I played a gig earlier this year and part of my payment was a Gibson chainsaw case that fit the guitar perfectly. So now I need a case for the original case. Probably should just put it in a gig bag which I already have some.
No such thing. Especially prs which depreciate like crazy. In your video your prs prices are extremely aspirational like off by thousands of dollars in some cases and don’t account for reverbs 10% fee cut and hundreds of dollars in shipping cost to get a guitar out of Singapore.
As I said right at the beginning if I tried to sell everything quickly and not wait for the right buyer , I would probably take a 30% haircut. And I constantly reinforced the lack of liquidity as a drawback. As far as the prices are concerned, I would like to know which specific ones you disagree with
@@ministryofguitar I like to think of myself as pessimistic when it comes to resale values, but the resale prices I saw on your sheet seemed completely in line for the ones I know about. The only one I wasn't so sure on was a Private Stock you bought new. Typically the personal one-offs depreciate quite a bit unless there's something unattailable about them that appeals to a specific buyer.
yeah I was looking at some of the prices he thinks he'll get and he's delusional. The fact of the matter is that you're not making nearly as much buying guitars as you will just buying the S&P and he's trying to pump out clickbait videos. It's just bad advice for content.
It's finding buyers. i found Gibson Custom shop sold quickly and John Majer Micra Cypress green start sold quickly. Lots of interest in the Mark Knopfler Strat. The PRS Mcarty Libary stock bonnie pink sold quickly as well. There is a glut of Fender Custom Shop. That said there are some key differences from 59 to 61 (slab board), late 62 round lam thinner necks and the 65 slightly bigger neck and change of fender logo (grey pickups). If you get people who understand guitars, they will know difference between 58 round back and a 1960 slim taper. You get those people you can have a conversation, the rest they just like the look of the guitar and they are buying to satisfy their image and ego,
I own 15 electric guitars. I bought them because I wanted them, not for any investment reasons. Most were new, but some were used. They are all over $3000 U.S. But if they go up in value, or if I can sell them for more than I paid for them, all the better. I am 73. My wife will probably have the honor (haha) of selling them as she is 8 years younger than me, and I am 74. Good video, btw.
That is the right way to buy guitars . The thing I didn’t add in this video is that all the guitars I bought in the video I wanted. I never buy any guitar for pure investment reasons
do not invest what you can not afford to light on fire and loose. do not invest until you can afford to invest $100 a week. INVEST IN QUICK RETURNS. your better off opening a roth IRA and buying guitars as a collector. get a $10k gibson and in 20 byears you will 1.5-2x your money if you are lucky
Investing in guitars is probably less effective at generating any income (on paper or in hand) than playing the day trading game or investing in individual stocks. Very few people can do it successfully and it requires a large amount of capital to get started. With the space issues noted and the maintenance required, the likelihood of success is very low. Unless you are looking to hold on to these for a long period of time (and store/maintain those guitars for that long period of time), it is unlikely to generate much appreciation. Guitars should be viewed primarily as a tool for making music. As an investment platform, there are many other things that are better to put your money into.
To clarify - I am not in favor of most people playing the stock market on individual stocks as an investment strategy either. It just is not a good idea overall. Guitars are even less likely to be successful investment vehicles. For every Utkarsh, there are 100 who have guitars that are showing no appreciation or worse yet, negative returns.
Your content is great but your channel has very few subscribers and views. I noticed that you regularly upload videos to UA-cam. I checked your channel and found some problems. Your videos are not SEO optimized, videos are not using powerful tags, channels are not properly optimized and Channel tags are not used. As a result, your video doesn't reach audience.
Great advice. I’ve noticed the same thing but keep forgetting to say anything. Hope Utkarsh sees your post and follows your advice so the channel will reach its fullest potential. It’s very thoughtful content!
AI guitar manufacturing? My understanding is that in, say, 20 years, AI will be able to reproduce a flawless copy of Joe Bonamassa's #1 59' Burst. Down to THE MOLECULAR LEVEL. Who are the future BUYERS of thousands of stored vintage instruments then? A flawless copy of Joe's guitar .... for $699 AI version? Or $50,000 for a real one? I worry about the collectors getting burned in the future. Burned BADLY. Am I wrong? Thanks for your great content!
Very interesting thought. I think there may simply be some limits on exactly replicating organic materials (inorganic can be replicated exactly) but you never know. Thanks for sharing
I think as artificially created stuff becomes more common, some vintage/old things will become irrelevant, but there will also be the effect of the rarest of original things actually becoming even more valuable. AI will not change the laws of economics and scarcity in supply creating an increase in demand. There’s already some surveys saying Gen Z is gravitating toward owning tangible possessions - like buying CD’s. They’ve grown up in a world so digital that physical possessions stick out more to them and are attractive. I think we’ll see similar niche “swingbacks” to old, original, and physical things even as AI and technology take over. Just my two cents
That talk is just ear candy for your spouse. Deep Down you just WANT them. Investment or not. Utkarsh, the way you talk about your top line PRS instruments show that clearly. But most people I know don't have that kind of cash. Many people I see playing anywhere have midlevel instruments at best. Working tools. I have made money on some and lost a little bit on some and bought a few to flip or as valuable trade goods at a bargain. But nearly everything I bought was because I wanted to play it and learn about it. What is the value to your heart and soul in playing such a fine instrument over many years? I know that answer and I am happy with it, I bought my J50 Gibson new in 1971 and still play it regularly. My first "investment" guitar. It has appreciated in value (a lot). But I bought it to enjoy playing it and I have. But the WANT. I WANT a gold top MIJ Revstar RSP (as played by Chris Buck of Cardinal Black) just because I want to play one, but it won't play or sound any better than I do playing my Indonesia made and far less expensive Revstar STD, which is an awesome instrument in its own right I own a Martin D35 because it was always my dream acoustic and because at this point I could, she is beautiful and lovely to play. But I play my OMC16e Ovangkol a LOT more for reasons unknown to me and it was half the price. I just like it for what it does. I am a primarily acoustic player. Got my first 'lectric 5 years ago, playing acoustic over 50 years.
Actually it’s not Deep Down. Every guitar I bought I really really wanted them. That is my pre requisite. The investment bit just makes it more feasible to own more instruments On the flip side I would never buy a guitar just because it would be a great investment. I let up very attractive offers on a Super Eagle twice just because they didn’t appeal to me. They are worth thrice what I could have gotten it for now
Chances are higher PRS prices will go up after he dies. Then guitars built under his watch become founder era. Don’t underestimate the power of marketing and self delusion. That’s why 1950s Gibsons cost what they do
I am small fry to you, I have about 40 guitars and I only have a few PRS, GIBSON, FENDER custom shop. I have spent about 52K Singapore dollars on guitars and gear. If I was to sell it all now I would expect to get about 62K Singapore dollars. So made a profit of 10K. But selling what the going rate is not easy. You have to find the right buyer at the right time and this can take a long time. I always told my wife they were an investment, although truth be told I really didn't see them as that. I did leave notes on how much they were worth if I passed away etc. However, my wife past away a few years ago. But I do recommend anyone who spends a lot of money on GAS let their wifes know what the true value is.
I fully agree. Time to find the right buyer is what makes it illiquid and not a traditional investment
And yes on letting your spouse know the value. That’s why I keep that sheet
I don't really buy to invest, I buy because something is super interesting to me as a collector / player. This has definitely proven to be a good strategy despite my general stance of always buy - never sell.
Haha I’m kind of in a similar stage now. Never sell
ha cool! I have a very similar sheet tracking my guitars over time.
it is very helpful
A good way to think about it in traditional economics terms, is that guitars are tools. Musicians put labor into them in order to create something of value, either social (jam with friends) or fiscal (record a song, live performance, teach lessons, monetized UA-cam channel discussing guitar trends). Tools typically depreciate in value; there’s only so many times a spindle can be used to make yarn before it breaks, and every use reduces future use value. So a tool like a guitar, in order to counter that depreciation, needs to gain in cultural significance. Predicting what’s going to gain in cultural value, that’s tricky. Gibson and Fender are big now because Gen Xers and boomers want the guitars they thought were cool when they were young, but the youth of today may, when they hit middle age, see those as their grandparents’ guitars and seek something else of their youth culture like maybe Strandbergs. So you have to be on top of things but also check your sentimentality and biases at the door.
Also, I’ll end with a bad pun inspired by this video: to hedge again Bretton Woods, buy Gibson goods.
Haha nice. I would agree with a lot of what you said. What I would add is guitars don’t really wear out and to whatever extent they do, it is relatively cheap to fix ( new strings) barring re fretting of course but that is few and far between.
If you invest with money you do not need then go ahead. If you need a quick return...think about it.
I bought 1 set of drums in ‘07 and have used them exclusively since. So all the gig money I’ve made since then has well covered my investment into a good kit long ago. I don’t gig on guitar but I own several for recording purposes. I did in fact inherit a valuable guitar though. A ‘61 Les Paul Jr., the SG shaped one. I even have the original alligator case. There’s only one problem; I can’t play it much really. Because, I play lefty handed guitars due to physical limitations. But, I keep the guitar as an heirloom and a hedge.
By the way I played a gig earlier this year and part of my payment was a Gibson chainsaw case that fit the guitar perfectly. So now I need a case for the original case. Probably should just put it in a gig bag which I already have some.
No such thing. Especially prs which depreciate like crazy. In your video your prs prices are extremely aspirational like off by thousands of dollars in some cases and don’t account for reverbs 10% fee cut and hundreds of dollars in shipping cost to get a guitar out of Singapore.
As I said right at the beginning if I tried to sell everything quickly and not wait for the right buyer , I would probably take a 30% haircut. And I constantly reinforced the lack of liquidity as a drawback. As far as the prices are concerned, I would like to know which specific ones you disagree with
@@ministryofguitar I like to think of myself as pessimistic when it comes to resale values, but the resale prices I saw on your sheet seemed completely in line for the ones I know about.
The only one I wasn't so sure on was a Private Stock you bought new. Typically the personal one-offs depreciate quite a bit unless there's something unattailable about them that appeals to a specific buyer.
@@AlanW yes it's a fair point. Private Stocks are a lot more variable. If I hadn't sold 3 myself , I would be a lot more bearish on the values
yeah I was looking at some of the prices he thinks he'll get and he's delusional. The fact of the matter is that you're not making nearly as much buying guitars as you will just buying the S&P and he's trying to pump out clickbait videos. It's just bad advice for content.
It's finding buyers. i found Gibson Custom shop sold quickly and John Majer Micra Cypress green start sold quickly. Lots of interest in the Mark Knopfler Strat. The PRS Mcarty Libary stock bonnie pink sold quickly as well. There is a glut of Fender Custom Shop. That said there are some key differences from 59 to 61 (slab board), late 62 round lam thinner necks and the 65 slightly bigger neck and change of fender logo (grey pickups). If you get people who understand guitars, they will know difference between 58 round back and a 1960 slim taper. You get those people you can have a conversation, the rest they just like the look of the guitar and they are buying to satisfy their image and ego,
I own 15 electric guitars. I bought them because I wanted them, not for any investment reasons. Most were new, but some were used. They are all over $3000 U.S. But if they go up in value, or if I can sell them for more than I paid for them, all the better. I am 73. My wife will probably have the honor (haha) of selling them as she is 8 years younger than me, and I am 74. Good video, btw.
That is the right way to buy guitars . The thing I didn’t add in this video is that all the guitars I bought in the video I wanted. I never buy any guitar for pure investment reasons
Wow. Aged a year while writing that comment.
Chasing you by 1 or 2 years, depending on how we are counting time today.
do not invest what you can not afford to light on fire and loose. do not invest until you can afford to invest $100 a week. INVEST IN QUICK RETURNS. your better off opening a roth IRA and buying guitars as a collector. get a $10k gibson and in 20 byears you will 1.5-2x your money if you are lucky
Investing in guitars is probably less effective at generating any income (on paper or in hand) than playing the day trading game or investing in individual stocks. Very few people can do it successfully and it requires a large amount of capital to get started. With the space issues noted and the maintenance required, the likelihood of success is very low. Unless you are looking to hold on to these for a long period of time (and store/maintain those guitars for that long period of time), it is unlikely to generate much appreciation.
Guitars should be viewed primarily as a tool for making music. As an investment platform, there are many other things that are better to put your money into.
To clarify - I am not in favor of most people playing the stock market on individual stocks as an investment strategy either. It just is not a good idea overall. Guitars are even less likely to be successful investment vehicles. For every Utkarsh, there are 100 who have guitars that are showing no appreciation or worse yet, negative returns.
I fully agree
On the same page on Day Trading
Your content is great but your channel has very few subscribers and views. I noticed that you regularly upload videos to UA-cam. I checked your channel and found some problems. Your videos are not SEO optimized, videos are not using powerful tags, channels are not properly optimized and Channel tags are not used. As a result, your video doesn't reach audience.
fucq this guy he comments on my videos all the time. GET OUT OF HERE SCAMM BOT
Great advice. I’ve noticed the same thing but keep forgetting to say anything. Hope Utkarsh sees your post and follows your advice so the channel will reach its fullest potential. It’s very thoughtful content!
@@MashaT22 Can I help you in any way?
AI guitar manufacturing? My understanding is that in, say, 20 years, AI will be able to reproduce a flawless copy of Joe Bonamassa's #1 59' Burst. Down to THE MOLECULAR LEVEL. Who are the future BUYERS of thousands of stored vintage instruments then? A flawless copy of Joe's guitar .... for $699 AI version? Or $50,000 for a real one? I worry about the collectors getting burned in the future. Burned BADLY. Am I wrong? Thanks for your great content!
Very interesting thought. I think there may simply be some limits on exactly replicating organic materials (inorganic can be replicated exactly) but you never know. Thanks for sharing
I think as artificially created stuff becomes more common, some vintage/old things will become irrelevant, but there will also be the effect of the rarest of original things actually becoming even more valuable. AI will not change the laws of economics and scarcity in supply creating an increase in demand. There’s already some surveys saying Gen Z is gravitating toward owning tangible possessions - like buying CD’s. They’ve grown up in a world so digital that physical possessions stick out more to them and are attractive. I think we’ll see similar niche “swingbacks” to old, original, and physical things even as AI and technology take over. Just my two cents
Only 88? Ha, got you beat but the guitars definitely live here more than I do....
That talk is just ear candy for your spouse. Deep Down you just WANT them. Investment or not. Utkarsh, the way you talk about your top line PRS instruments show that clearly. But most people I know don't have that kind of cash. Many people I see playing anywhere have midlevel instruments at best. Working tools.
I have made money on some and lost a little bit on some and bought a few to flip or as valuable trade goods at a bargain. But nearly everything I bought was because I wanted to play it and learn about it. What is the value to your heart and soul in playing such a fine instrument over many years? I know that answer and I am happy with it, I bought my J50 Gibson new in 1971 and still play it regularly. My first "investment" guitar. It has appreciated in value (a lot). But I bought it to enjoy playing it and I have.
But the WANT. I WANT a gold top MIJ Revstar RSP (as played by Chris Buck of Cardinal Black) just because I want to play one, but it won't play or sound any better than I do playing my Indonesia made and far less expensive Revstar STD, which is an awesome instrument in its own right I own a Martin D35 because it was always my dream acoustic and because at this point I could, she is beautiful and lovely to play. But I play my OMC16e Ovangkol a LOT more for reasons unknown to me and it was half the price. I just like it for what it does. I am a primarily acoustic player. Got my first 'lectric 5 years ago, playing acoustic over 50 years.
Actually it’s not Deep Down. Every guitar I bought I really really wanted them. That is my pre requisite. The investment bit just makes it more feasible to own more instruments
On the flip side I would never buy a guitar just because it would be a great investment. I let up very attractive offers on a Super Eagle twice just because they didn’t appeal to me. They are worth thrice what I could have gotten it for now
How much of a haircut are you taking after Paul Reed Smith dies? 20%? 30%? How long do you project that he will live?
Chances are higher PRS prices will go up after he dies. Then guitars built under his watch become founder era. Don’t underestimate the power of marketing and self delusion. That’s why 1950s Gibsons cost what they do