Me too. I bought a used Squier Stratocaster MIJ from 1982-1984 (from the Squier web-ste. Haven't taken off the neck to check the exact year.), in 1987. I considered it a very good guitar but didn't expect them to be very sought after many years after. I bought for the equivalent of 247 USD at the time, and now they go for anywhere from 800 to 1400 USD for a well-kept one. I bought my main guitar in 1990, a PRS, Black Special in Germany, and I bet its value has also gone up some. But I have used them for what they are supposed to be: guitars to be played. When one of the original pickups on the Squier died, I bought an EMG-equipped pickguard with DG20 pickups and put that on, and it plays very well.
I'm 63 years old and in the US it was always said that your home would NEVER lose value. Right, think 2008 and what came after and we SAW it coming as people bought houses that could not even BEGIN to afford them. Many of us in the US are very "patriotic" for lack of a better word and said with no ill-intent at anyone else in the world, but we don't trust our economy or cash with any degree of certainty anymore. Thanks as always for a unique and intelligent perspective.
63 here as well I was lucky to get my first house in 2011 for 90k in Commiefonia, zillow now listing for 370k ..... I've got a pretty good collection of around 20 guitars... sure some of them are amazon special deals but some of those really were a deal for the dollar., ITS AN INVESTMENT , this guy is on the mark I believe.
@@monteself6826 There is a glut of used guitars on the market right now. This has forced Sam Ash Music out of business and Guitar Center is hemorrhaging red ink. However, I still share your belief that guitars are an investment. In the future, younger generations will still want to play old guitars as they achieve success and can afford them.
I was a musician during my youth. After college, I entered 'the real world'. That being said, I still have a passion for guitars and I started collecting them around the year 2000. Currently, the collection is up to around 40 guitars. I enjoy investigating different manufacturer's products, even though I own a few Fender Strat's and Tele's. Some of the most expensive ones were a Paoletti (Italian make) telecaster. Body is made out of 150 y/o oak from old wine barrels. The look and feel are superb. I have a Suhr which is a nice high end guitar. I've tried to purchase artists 'signature' models (like a Jeff Beck strat, Steve Lukather Music Man, a Joe Bonamassa signature Les Paul Goldtop, a rare rosewood Telecaster without a skunk stripe on the back of the neck which was a gift from Fender that George Harrison used on the Let It Be recording sessions in 1969 an Orianthi PRS or a J-160-E Gibson 1964 reproduction hollow body limited edition 'made to the John Lennon spec' (he used on Give Peace a Chance' and other songs), where a total of 500 only were authorized by his estate. Same for a John Lennon spec reproduction of a 1965 Epiphone Casino (he used on the rooftop concert of 1969). A limited run of 1,965 guitars were authorized by the Lennon estate. Both Lennon guitars he'd had stripped of their sunburst paint jobs and back to its natural wood finish by his luthier. Everything is kept in "as new" condition. I have no intention of selling anything . It's nice to know that values of 'good stuff' are going up.
@@theofficialdiamondlou2418 A brilliant guitarist with a used Squire telecaster or Strat can still be breathtaking. The trouble is making a living as a musician (to use a cliche') is "harder than a night in jail". I simply didn't have the chops to be anything more than "highly average". Being brilliant, working hard and getting lucky will earn you a living, but not the kind you earn in industry or the medical profession. The hopes of making a ton of money are about the same as they are in acting. Art? To quote Bon Scott, "It's a long way to the top if you wanna rock 'n roll". I realized my shortcomings by my early 20's but never gave up the love of performing and being a musician. Having made a respectful upper middle class living in "business", I buy affirmations of my avocations. I will never be Sterling Moss, Nigel Mansell or Graham Hill, but I have 2 vintage British sports cars in my garage as part of beloved things I collect (because I can). If you're a working musician, I respect your efforts and empathize with your struggles and sacrifices.
Very interesting. Even more relevant today as we are entering a time of global financial turmoil. I have a small guitar collection. I have 0:06 been buying, selling, and collecting guitars since the 1970’s. My guitar collection has saved my ass several times over the years. I went through 2 divorces and sold my collection each time to get back on my feet. I may have taken a bit of a loss on the sale, but it was enough to get started again.
@@The_Macaroon Fortunately it was an amicable divorce. I kept my things, she kept her things, and split the money from the sale of the house. Will never get married again.
Guitars are a risky inflation hedge. Unlike food and other necessities, guitar manufacturers can't just raise prices because people don't need to buy guitars. Other people will also sell guitars if they can't afford higher living costs.
I agree with the theory of what you are saying. In practice, if you track the data, it has kept up. There are two additional factors 1) Specific guitars have the rarity and popular culture factor which make them well exceed even equities 2) Numerically there is an expansion of guitar buyers globally due to globalisation and formerly developing countries getting much more prosperous
@@ministryofguitar The inflationary scenarios you described are severe. If there is ordinary inflation, then you have a point. When inflation gets really bad, people struggle to pay for the basics needed to live. The last thing on their minds is buying a guitar. You might find a rich person to buy a special guitar, but there aren't that many rich people around and even they get more cautious when the value of their money is evaporating.
Well, okay... This is one of the things that suck about getting older: you can always remember when things were "better"; like milk at 25¢ a quart, or tickets for the Filmore East at 2, 4, and 6 dollars to see three top bands. Musicians are historically strapped for cash, as are most "artists" or those who live life as an artist. So there are always good instruments available; ones made out of real aged wood, even rosewood! But here in NYC there's a saying at the music stores: That guitar is worth (put a number here), until you want to sell it. That couldn't be more true. As boomers are dying off (myself included) there will be many nice guitars coming to the market. I'm not wealthy by any stretch but I've got 10 guitars left that I actually play, including my first which is a desirable vintage Gibson I paid $150 for back in '69. And this is what most "collections" are like. Since guitar prices first made the news back in the 80s , and the number of guitar players has grown astronomically, there are A LOT of guitars out there. And there's this mythological thing known as "supply and demand"; Google it, but remember, that it's only a half-truth. The big mistake people make is in thinking that their guitar is so special that it's worth a lot. The first time I saw a used Squier being called "vintage" and asking a price above its original retail I knew that money had driven the world insane. No... greed is NOT good! What everyone reading this is going to find is that their guitar, even those having high "intrinsic value" (meaning what it would cost to make one today) even those will not be sell-able for what you thought. Case in point: I had a '75 Strat I needed to sell about 10 years ago that was amazing. These were listing for like $2800 at the time - I priced mine at $2500, ready to go as low as $2200. Two years later it finally sold for $1800 to a guy that loved it but could only come up with that much. At least he was a really nice guy who I knew was going to cherish it. And that's what a guitar should be: an instrument, a tool you use to create art. Not an "asset" or investment instrument. It doesn't work. The only guitars that maintain high value are rare or historically significant, not a $50k reproduction of a famous guy's iconic instrument. Not a Squier (though there are some great Squiers). Not a '70s SG (which were crap when they were new). And not your guitars. Even '59 Bursts are selling now for half what they once did. When Jimmy Page's #1 comes to the auction block, it will fetch a record price; but you will be able to buy a nicer one for a small fraction of that price. Another thing: Many of the guitars valued over, say $10k, are fakes. Fakes only an expert can spot, and I mean a "real" expert, probably one of us boomers who've actually seen and played many examples of the real deal. And from, what I've seen, a significant number of Gibsons and Fenders found outside the US are copies; maybe as many as 50%. And why not? How many people outside the US have actually touched a '64 ES-335? Putting guitars into the investment space, like paintings in Christie's auctions and such, was a mistake. It was the lust for a "buy low-sell high" item with sex appeal and it made no sense from the start. The art market is loaded with fakes, there are films about this on Netflix and Amazon that are very educational. And, in the world of fine art, people who do appraisals are highly educated in art history and every detail of the works, materials, techniques, etc. I mean they get degrees and work in museums before they're in the newspaper for having bought a 20 million dollar forgery. So this is what I know from what I've seen over the years. My opinion at this point in time is: if you have a significant investment in collectible guitars, now is a good time to start thinking about beating the rush to market. At very minimum, don't think you're sitting on a comfortable nest egg that can't/won't lose value. It may already be worth much less than you think. Good luck.
Well said. I think I also used the term “tools”. Because that’s what they are for a REAL musician. Not a backdrop for a video , or a collectible. It’s like if I went and bought every Snap on wrench in the country. “But hey , they’ll be worth a lot of money someday. Who cares if mechanics can only get craftsman anymore. I’ll get rich. “
Japan resident for 25 years, and a player and performer. Very informative video, good one! The yen situation is bad, many of my friends have cancelled travel plans. I have a U.S. credit card-bad idea. It really is a wonderful place to both buy and try guitars. You can try the most expensive guitar at a shop, no one cares what tax bracket you look like. That said, guitars as instruments and as investments are not the same. Every time you ;play a guitar as an instrument, it's a little less valuable as an investment. There are also guitars that are sought after by collectors-Orville, made by Gibson for the Japan market comes to mind-but the ones I've tried are less than overwhelming.
I had an encounter with a PRS bolt neck guitar many years ago at a price I wish I would have paid now. I have owned a few Japanese guitars and one - a Vantage - I really regret letting go of. Wonderful craftspeople.
Under inflation, here is a well-balanced portfolio: Bitcoin, Ethereum, Gold, Silver, canned food and ammunition. And you should own at least one guitar if you are a guitar player.
My G5421 Gretsch I bought for $339 new now does $445 new nowadays. Affordable reasonble quality guitars are going up for sure. The Sire S3 and Squire CV's are going up in price as well.
No one is talking about the M1 money supply here in the US, which is unfortunate. You can’t correlate all the financial data and then make some educated predictions about your future without that piece. The average consumer, poorly trained in Macro-economics, doesn’t know the difference between fiscal and monetary policy. The net result of that ignorance is politicians and a complicit media being able to mask what is actually happening to the global economy post COVID and the disaster that looms ahead. Buckle up, it’s going to be the bumpiest ride the world has ever seen in the next 36 months.
@@3Torts the Cliff’s Notes version is Fiscal policy is how much the government spends (unfortunately irrelevant to how much they take in from tax revenue) and Monetary Policy is how the Fed (a non-Federal entity with questionable roots and charter) controls money in circulation and adjusts the bank “borrowing” rate. Read the Creature from Jeckyll Island for a deep dive in the Fed and its issues.
@@3Torts😂 that's your question !? How about "care to enlightenn us on the next 35 months and what to expect" would have been pertinent to the topic. You just let your ego control your body and mind.
The M1 supply has steadily gone up since the great depression. This year it has gone down for the first time since then. Monetary policy is what the fed does Fiscal policy is what congress does I believe OP says that we are headed for a hellacious crash
Japan has been in a recession since 1990. I still remember the commercial in 1989 where it stated Japan would be the world economic leader. That was 34 years ago and they never recovered. Japan is also dying off because young people aren’t getting married and having children. We have a cultural/ generational correction coming to the world economy. I ran forging hammers for 30 years and half of that time was spent making parts for Harley Davidson. The market is over saturated with non essential retail goods whether it’s guitars, motorcycles,boats or whatever other items people can buy or get loans for. My adult children are millennials and we have no cultural connection. Once the pre boomers and boomers start dying off we’ll have an even bigger glut of these items. The dollar is a fiat currency that is backed up by the U.S. Military. It’s a very intricately designed and tangled web.
This only pertains to the high end market to be clear. Medium and low, is too saturated. Coupled with the fact that the guitar market is the softest is has been for half a century.
I agree. It was difficult not to see this coming from here in the U.S. We are barely getting by, here, and I noticed the low prices of Japanese products. I only hope we do not have a world wide collapse. Interesting.
Wages have also went up, the # of hours required to buy a guitar is still about the same as 25 years ago. ie. 25 years ago I bought my first JS1000 Ibanez for the equivalent of about 225 hours of minimum wage, before taxes, at the time (Canada), that equals about $2,900 USD today ($17.4*225/1.35... cad min wage*hours/exchange), the exact price the equivalent/modern guitar is listed on Sweet Water at this moment. So while the price has went up, it's still going to cost someone the same amount of work. Also the PRS example of $2.5k to 3k over 5 years only equals 3.7% annual return ((3k/2.5k)^0.2), plus your time dealing with people interested in it or hassle of sale.
Diversity is the key. You are correct that money gains and loses value like any other commodity that depends on supply and demand. If you have assets and currency becomes worthless, you still have your assets to trade since you will not want to sell them for a currency worth nothing.
Excellent video. I used to have a series 7 license. I get it. There are some famous guitar collectors in the USA. These people are aware of exactly what you stated in this video, and openly discuss it (Between themselves) as most people in the USA do not have 1 million dollars or more invested in guitars. I am certainly subscribing to your channel and following your advice and updates. Great job. Thank you.
I like your reasoning. It's tough when there's a collapse. In terms of the difficulty of hanging onto a physical asset like a guitar collection. Nevertheless, it's something to think about
You say your guitars are (relatively) worth more. Only if you can find a buyer prepared to pay what you believe they are worth.....in the event of you selling them. And another significant factor....if , for example, the Singapore Dollar does crash.....you won't be finding buyers in Singapore. They won't have the money to buy them. The guitar is ONLY worth what someone is willing to pay....NOT what you may believe it is worth.
I didnt buy my guitar as an investment i bought it because it sounded great and still have it and play it after 30 years i wont be selling it we have been thru alot over the years
The BIG problem with your argument is that when the dollar drops guitars will be the LAST thing people will be buying. The first thing people drop when money gets tight is entertainment.
Wow-I didn’t realize this! Funny thing is my guitars all sound either the same or they have gotten better with age. Whether it my Martins or Gibson acoustics or my SG’s, Les Pauls, tele’s or strats-they all sound great. The money I purchased them with has already got me what I wanted-the joy of owning and playing these beautiful instruments. I guess I never looked at them as securities or investment property? Stupid me.
My question is this. Who sells guitars??? I buy them to play them. I’ve got some ive had since the mid 70’s. Yes, I only have a dozen or so, but each one is different. I don’t have multiples of anything.
I learned to buy ONLY based upon how I value things, as soon as I was old enough to buy things on my own. it lead me to not overspend. it keeps me from the stress of worrying about the myriad of things outside of owning said item. teaches me to enjoy something for what it is, and nothing beyond that. keeps my mind clear, and perspective free of the tumutuous nature of economies and other's whims. ownership is not affected by market fluctuations. unless you have invested money you might need back, into them. or you are considering acquiring more. just offering a different perspective....
Regular People used to collect mid level art and antiques. The market is moving toward vintage over antiques and functional over admiration for the collectibles. I’ve got my 1952 0018 just itching to see the world but I can’t let it go because the sound is so good. The 1990 Gibson J45 is the player though.
hedging with guitars sounds great in theory, but in reality - if I am a Japanese person and value of my cash just went down by 40% the last thing in the world I would be looking to buy would be guitars that became twice as expensive. I'd imagine that at that point guitar market in Japan became quite illiquid and no one was buying.
Two thoughts. 1) the time to hedge is certainly not after shit has hit the fan . The time is earlier 2) sell overseas. guitars are a global market. While the yen was collapsing, guitar prices globally were rising.
Great timing, I’ve been looking for a mint Liquid Metal Red FRX and was *just* checking into shops in Japan for a deal given the currency challenges. You’re right about having a small bit of hard assets. I have taken the same hedge but in art/watches/cars. I have always been a fan of liquidity and freedom vs owning a bunch of stuff, but also understand what could happen here in the next year or two as countries begin selling treasuries, impacting USD supply, plus inflation. Could be an ugly period of stagflation ahead in the US which will impact global markets. It’s good to be diversified and hard assets should be a component for sure you are exactly right. Love your content, very relatable, thanks! ✌️✨
Not sure I understand the logic here. Let's say I have a bunch of guitars, worth $50000, today. Let's say tomorrow my bank accounts - along with everybody else's - shrink 40-50%. Basically, locally, there'd be no money for buying an expensive guitar in my collection. So, are they really worth as much or more as they were before the crash? Maybe, but - it seems to me - only if I sell in some foreign market that isn't getting hammered by the dollar crashing. And when the dollar crashes, my experience is that the rest of world tends to follow in some form of turmoil as well. Obviously, I'm no pro money manager, but applying a bit of common sense says I'm practically broke, and own a ton of guitars I can't move.
It's a good clarification.The point is to hedge, not put all of one's eggs in one basket. Also your stated argument assumes a dollar centric, US centric economic view of the world, which has been true post Bretton Woods but the uni-polarity is fast reducing. To make things worse, the US Government's debt accumulation is doing it no favours. Long story short, don't assume the whole world's economy crashes because the US dollar crashes
It's not a bad idea to have some guitars, but a "big chunk" of your money in guitars (one asset) is not a good idea. When there is a widespread downturn in the economy, people won't have money to buy your guitars. You can't eat a guitar. It won't heat and cool your home. It won't put fuel in your car. It won't buy sundry items you need to live. It won't outperform industrial commodities. It won't outperform precious metals and real estate in the inflationary scenarios you mentioned. The best thing you could do is be diversified across asset classes. You will endure and even thrive with the assets I just mentioned.
@@ministryofguitar I like to think of guitars as instruments I use to enjoy life, not so much as investments. If I buy a really good guitar brand, it'll probably increase in value over time, but I don't count on it to live. If it holds value, that's great. If it doesn't, I receive the value of enjoying it to play music. I can't lose.
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I would never look at guitars as an investment option. It’s a hobby and there is not a high enough demand for for it. It’s incredibly hard to turn it into cash when you need it. There are much more liquid investment options.
I’m not a collector. I am a musician. I have some stellar instruments. I play them all. I have sold 2 instruments, both mandolins, in 30 years. I regret both sales to this day. It won’t happen again unless I absolutely have to. WHICH I WONT.
Japan has been manipulating its currency since the early 1970s. I lived in Hawaii and Japanese tourists were rich compared to us. Americans would come to Hawaii to sit on the beach. Japanese tourists would come over to shop!
The Yen was too cheap for sure. That’s one of the things they were forced to change in the plaza accord and then that created a whole new set of problems
1800 USD for a JVM 410H is nowhere near the current price. Marshall products have dropped in price due to a change in distribution, but not to that degree. Unless you have a link to share?
Look up how they are not made in UK any longer. They started using crappy foreign parts and some YT videos exposed it. They then dropped prices bc people stopped buying new crappy component made Marshalls. The new owners are really screwing up Marshall and now the old school Marshalls will be more valuable over time. Boutique builders are also making much better hot rodded Marshalls.
Ive held my 1958 Martin D-18e since 1999. I thought for years it could be Kurt Cobain's. Now i know its the sister to Kurt's. Im thinking of saleing it. For the right price.
Assets, as the rich know well, are the best protection against inflation. Because the ratio of money to assets/resources = zero, if money goes down in value, then assets go up. And since inflation is far more common than deflation, assets like houses, mines, guitars, factories, etc are the way to go. Plus, you can use assets as a passive source of money, by renting them.
Great video! High end guitars that are rare will go up in value for sure. The crappy lower budget guitars that have ample supply will fall in value. Have to be a collector that knows what to buy. Just like any other asset collection.
I'm humoured, an interesting feature about my humble collection. I must admit, my collecting has seen me make very good money from selling at select times. Nice to remind myself of beneficial reserve if disaster struct even though I do enjoy owning them.
Some of my guitars have increased greatly in value. If, God forbid, I needed to sell some, it would be difficult to move them at a decent price given the soft market. I definitely agree that a bank is a terrible place to keep your liquid assets. I prefer gold, silver, mining stocks, and even a bit in U.S. Treasuries (currently paying over 5%). This worked out really well for me when I bought a bunch in 2006 and sold in 2011. This time I expect it to be even better. This will allow me to pick up some amazing guitars in the future. I enjoyed your video.
Well done my friend!! Thank you for that perspective. If someone wanted to buy guitars for an investment, I’d think it’s pretty safe given that the pleasure of playing and owning them is the ultimate payoff. At least if by chance you lose money, you got something out of it. Can’t say that about a boring stock 😃
So I apologise if I sound stupid . But I just want to check something . So the prS guitar you mentioned that was worth 7,000 USD went up to a value of 21,000 ?? That’s ridiculous and a bit terrifying for Japan . It does concern me as I play Ibanez guitars and I’m fond of them . While I am not likely to part with my guitars ever, I can understand that you are trying to help musicians , guitarists and collectors alike . I respect that and thank you so much! I’m yet to finish the video but I would like to ask a question . I have my favourite guitars and I don’t see myself buying a new one soon . I’m interested in a nylon string acoustic but otherwise I’m happy. The question is as a guitarist , are we likely to experience a big rise in guitar prices worldwide? That scares me because while it would be good for guitar shops , it is not such a great deal for musicians
So the prices in USD just went up about 20%. But because the Japanese yen declined vs the USD, so the price in yen went up much higher . The point is not that guitars will get much more expensive. Used Guitars just keep in touch with inflation usually. The point is that sometimes individual currencies are volatile so guitars are likely to retain their global value even if your countries currency has problems
You have to be a VERY sophisticated guitar buyer to just buy the guitars that go up in value in real (inflation adjusted) terms. Most guitars decline in nominal value, especially those that sold for less than $500 when new. And comparing guitars to inflation (fiat currency) is like comparing diamonds to poop. Governments are destroying their own currencies in order to prop up their stock markets. Instead, compare guitars to Gold or Silver. My bet is that precious metals do better, if you compare them to a portfolio of guitars.
If you buy guitars to collect rather than play them then the easy word is 'tough.' Those who buy to collect make it much more difficult for those of us why buy to play them.
please study more on the real Japanese debt situation. the reason for the cheaper Japanese Yen against USD is mainly due to the interest rate and ignorant people working for the Ministry of Finance.
Your guitars are only worth what someone is willing to pay. If shtf, then people will be struggling to meet their basic needs. Your guitars will be next to worthless compared to a months worth of food shopping, or a car repayment etc. Same happens with precious metals such as gold; people may have it and say it has x value, but when they need to use it they can't cash it.Try buying some food using a piece of gold. The only ones who will touch it are the brokers/banks and they will have their own finance worries. So you have a pretty metal that you can't do anything with.
Very interesting, thank you. It doesn't apply to me though as I am a guitarist and I use my guitars frequently playing and recording and they are my babies.
Guitars will make awesome barter currency, if the world ever gets to that. Strings are a smaller denomination, but could become more valuable because no matter how many guitars you have, you can't play them without strings 😉
I am thinking that buying Japanese guitars at this time will be good since dollar vs yen is great. So Japanese guitars are cheaper in US dollar . Once Yen comes back up it is going to be worth more in US dollars. Now say you buy a Japanese made Fender which is not any less quality than an American made one for 1299.00 in US dollar and the Dollar goes down you may sell it in higher Dollar amount. That is a hedge towards your Dollar value. Tell me if I am right. All my guitars that I bought around 2020 to 2022 have gone up in price maybe around 20% . I am sitting happy cause the money in the bank is losing purchasing power because of high inflation .
It's a great time to buy Japanese guitars for sure. Also, on the guitars going up 20%, that would happen if you bought used guitars. Most new guitars usually unfortunately lose 20-30% the moment one buys them
I dont play Electric ... but an Acoustic Guitar player ... On electric side Fender and Gibsons are way over priced not worth from last 3-4years if you bought from 2021... But its all depends upon what you buy... From Acoustic point too Martins which i play and own.... Customs will retain (Good Choice of wood) and will be a good hedge against future
Investing is quite literally just gambling. You are buying something, whether it's an asset or a stock, with the hope that it will be worth more in the future. Profit is not a guarantee. I'm aware that my guitars are worthless to others, despite how good they actually are. The only one worth what I paid is probably my Squier 70s Jazz bass. I'm left handed, we don't get a lot of options, so I modify my guitars. The only one I haven't touched, apart from my acoustics, is the Jazz bass. That's fine though, I'm a player, not a collecter. I could play that Jazz bass for the rest of my life and be happy. My other guitars are so good, and testing videos + my own tests have killed my interest in buying more guitars. Maybe the day will come when I don't want poorly painted guitars anymore, but I'd have to justify the high price tag of a new guitar when the one I already have plays so well.
Ha that’s what I’ve been telling my wife every time I buy a guitar. The Pete thorn Suhr has gone up. The Ibanez Az 2204 Limited Edition KB Koa wood is worth way more than I paid. The Novo Guitars are holding there value.
it's an open question. I have shared some thoughts on it in other videos
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Generation X also plays guitars. So does the older Gen Ys, they were the ones behind 2000s indie rock craze. People have to get over this retarded boomer fixation.
I’d say the one thing about a good guitar is, it gets to live indoors. So unlike a car, it doesn’t rot. This is a core difference, it’s different for pro players, they leave the house with theirs, unless they get sponsored by somebody which is useful. My motorcycles used to get vandalised, and a guitar friend of mine said ‘Need to get a hobby where you don’t expose your favourite things to some idiot in a car park.’ Twice in my lifetime, that I recall, our UK pound has equalled $2.50 US or more. Once that happens, a correction will be made to block it going further. Patently however, you could buy at the right time and sell later, and make double your money (either way, depending when you buy & sell). Circling back, my most expensive guitar is a Chinese-made Squier. It’s about the best one the brand made at the time. It’s lighter and smaller than an actual badged Fender 6-string Strat, and I drove over 300 miles to Norwich to buy it, Candy Apple Red being in short supply at the time! Wasn’t even brand new either, it was shop-soiled. But it’s a lovely guitar. That’s all that matters, and the feeling as I drove back with it, on that sunny day. ! Take care all.
You lost me at “guitar collector “. You do realize guitar players HATE guitar collectors. YOU ARE THE ONES DRIVING PRICES THRU THE ROOF!!! FOR YOUR OWN PERSONAL GAIN. WE PLAY FOR HUMANS EMOTIONAL GAIN! But because y’all have driven up pricing. Working musicians are forced to use inferior tools to do our job …
the last four guitars i bought i was able to sell them for twice what ive paid for them. but i buy mine from pawn shops so i havent paid top dollar in 20 years for a a guitar
Once again, another Video of Quality, Meaningful content, I love what you're doing here! You had mentioned your Indian Upbringing, could you make a video on the Impact of Music in India, culturally, Socially, as especially religiously. I'd love to hear your perspective on this.
Great video! One question, and not to be pejorative because I am Singaporean myself. How valuable are used guitars in Singapore when Singaporean used guitar buyers are often very aggressive in their negotiation/purchasing? The "lowballer" carousell stereotype is based in a certain truth. I'm sure you have experienced this yourself with insulting offers from either local buyers or shops (I won't mention any names of course). Are you confident that you will be able to sell your guitars when you want to? For me personally I've stuck to buying stuff that I won't part with because I know that I'll take a serious haircut if I try to sell lesser known Japanese boutique brands here, it's just a very limited market. I do think that brands like PRS and Gibson would definitely put you in a better position!
It's a very good question. I have a couple of thoughts. One is, the market in Singapore is very limited. Lowballers aren't unique to Singapore but it definitely takes a lot more time to sell here. The key is not to be in a hurry to generate cash from the guitars. I have pretty much sold every guitar I have wanted to via Carousell but it has taken time. There is a bigger point related to this video. The hedge of the guitar portfolio is a global hedge. Selling abroad is always an option, it just comes with more transaction costs. To that end, I have made sure to have a track record (for my own confidence and that have buyers) of selling guitar overseas. Building a large guitar portfolio is not a passive activity, it is only for the most involved, but it is very rewarding as one can play one's assets
I’ve been living in Japan for the last five years and saw the Yen’s drop. Americans living there were buying stuff like crazy. I bought 30 guitars. Lots of Japanese made Strats and Teles. I just moved back so I can sell them and make probably 3-4 times what I paid.
Is that why the MIJ stuff has been cheap in the states? I saw a lot of aerodyne stuff going for $600 recently, and some of the JV modified stuff is dropping below $1k, sometimes considerably below.
I can but a Japanese strat from Japan right now for $300-$400 and it's been that way for 2 years at least. Gibson SG special classic for $700 plus shipping in Japan. It would cost $1000 in the USA so the Numbers line up.
Japan is in population collapse hard, and the US also so prices dont go up wen fewer people are competing for them... so collecting stuff in population collapse culture or collecting stuff where there is population is growing and there will be more and more people wanting the same limited stuff... how they become more expensive??
Inflation is heavily underrated. Given you have 100‘000 US$ on your bank account and a yearly inflation rate of 2%, you will lose 10x2%=20% of that value after only 10 years, even though the 100‘000 US$ will still have a nominal value of 100’000 US$.
A very interesting video. I am not a financial expert by any stretch but I think the preservation of value in a guitar collection in Singapore is fundamentally different than a guitar collection in the US. IN Singapore the guitar collection is like any investment in US assets, in fact he might be better off just holding an interest bearing US dollar bank account. He is not valuing his collection in light of the relative supply vs demand of the guitars but he’s using the collection as a currency hedge.
You are very correct. It is a currency hedge in Singapore as opposed to the US. The second nuance I haven't articulated in the video is that this does not preclude other things in the portfolio like indeed bonds, gold etc. Meaningful significant guitars can be a small part of the portfolio, albeit one that one can enjoy if one is a guitarist
The many houses I’ve built and sold in my life in Northern California are worth many times more today than when I built them. The guitars I bought and sold in my youth have appreciated at a similar rate, and likewise my perfect 69 Dodge Charger would be untouchable. It would in fact be way too painful to re-buy my Charger or even a few of the guitars I sold while in college. House and guitar prices are supposed to be crashing now. Haven’t seen it here. Not yet anyway…..Biden caused world wide inflation that we’re all stuck with. Don’t expect prices to ever return to sanity.
You buy music gear and pay a premium You go to sell gear and even though your listed mint condish guitar is half the new price, it wont sell.....the reason? people dont have money, but they do have credit, so they will pay full price to pay it off a bit at a time and pass on saving many hundreds of dollars because they dont have the money and refuse to save for purchases
I don’t buy guitars for investment. I buy them to play them. That’s why i don’t have that many. The hours of enjoyment, blood, sweat, and tears you put into, that’s not something you can put a price on
N + 1 = perfect number of guitars you need.
N = the number you currently own.
Thanks for reminding me of the formula. I was debating a purchase but that settled it, off to Guitar Center I go! :)
14 and counting 😂
😂
@@Eagleonspeed 19 and counting, we have gas.
so true, and I'm just starting.
My guitars are NOT an investment, it's just my guitars.
Me too. I bought a used Squier Stratocaster MIJ from 1982-1984 (from the Squier web-ste. Haven't taken off the neck to check the exact year.), in 1987. I considered it a very good guitar but didn't expect them to be very sought after many years after. I bought for the equivalent of 247 USD at the time, and now they go for anywhere from 800 to 1400 USD for a well-kept one. I bought my main guitar in 1990, a PRS, Black Special in Germany, and I bet its value has also gone up some. But I have used them for what they are supposed to be: guitars to be played.
When one of the original pickups on the Squier died, I bought an EMG-equipped pickguard with DG20 pickups and put that on, and it plays very well.
Tell that to the government when it's 15000$$$ worth
@@JamesCzerwinski-zk4qu I don’t live in the US. 😊
Hell yeah!! My guitars are just ❤
Saved me the typing it's only important to people who are going to sell their fiddles
I'm 63 years old and in the US it was always said that your home would NEVER lose value. Right, think 2008 and what came after and we SAW it coming as people bought houses that could not even BEGIN to afford them. Many of us in the US are very "patriotic" for lack of a better word and said with no ill-intent at anyone else in the world, but we don't trust our economy or cash with any degree of certainty anymore. Thanks as always for a unique and intelligent perspective.
If you think the housing market crash of '08 was bad, just wait for Boomergeddon. I've seen a couple of examples of this already.
Geez - you just killed my buzz - but you make a good point
@@gaiustacitus4242it couldn’t happen soon enough. TBD
63 here as well I was lucky to get my first house in 2011 for 90k in Commiefonia, zillow now listing for 370k ..... I've got a pretty good collection of around 20 guitars... sure some of them are amazon special deals but some of those really were a deal for the dollar., ITS AN INVESTMENT , this guy is on the mark I believe.
@@monteself6826 There is a glut of used guitars on the market right now. This has forced Sam Ash Music out of business and Guitar Center is hemorrhaging red ink.
However, I still share your belief that guitars are an investment. In the future, younger generations will still want to play old guitars as they achieve success and can afford them.
My guitars are never for sale.
That's why I so dang many!!!!!
You are probably doing the right thing. Philip McNight is thinking the same way. He is considering his "Collection" as money in the bank for his kids.
@@ShawnShipstad
And they're all sentimental to me
23 and counting...have my eyes set on an Epiphone explorer and PRS Paul's guitar next 🤪
I was a musician during my youth. After college, I entered 'the real world'. That being said, I still have a passion for guitars and I started collecting them around the year 2000. Currently, the collection is up to around 40 guitars. I enjoy investigating different manufacturer's products, even though I own a few Fender Strat's and Tele's. Some of the most expensive ones were a Paoletti (Italian make) telecaster. Body is made out of 150 y/o oak from old wine barrels. The look and feel are superb. I have a Suhr which is a nice high end guitar. I've tried to purchase artists 'signature' models (like a Jeff Beck strat, Steve Lukather Music Man, a Joe Bonamassa signature Les Paul Goldtop, a rare rosewood Telecaster without a skunk stripe on the back of the neck which was a gift from Fender that George Harrison used on the Let It Be recording sessions in 1969 an Orianthi PRS or a J-160-E Gibson 1964 reproduction hollow body limited edition 'made to the John Lennon spec' (he used on Give Peace a Chance' and other songs), where a total of 500 only were authorized by his estate. Same for a John Lennon spec reproduction of a 1965 Epiphone Casino (he used on the rooftop concert of 1969). A limited run of 1,965 guitars were authorized by the Lennon estate. Both Lennon guitars he'd had stripped of their sunburst paint jobs and back to its natural wood finish by his luthier. Everything is kept in "as new" condition. I have no intention of selling anything . It's nice to know that values of 'good stuff' are going up.
Meanwhile 40 poor working musicians are playing crap , while the tools they need are hanging on a wall. Good for you pal. 🤦♂️🤦♂️
@@theofficialdiamondlou2418 A brilliant guitarist with a used Squire telecaster or Strat can still be breathtaking. The trouble is making a living as a musician (to use a cliche') is "harder than a night in jail". I simply didn't have the chops to be anything more than "highly average". Being brilliant, working hard and getting lucky will earn you a living, but not the kind you earn in industry or the medical profession. The hopes of making a ton of money are about the same as they are in acting. Art? To quote Bon Scott, "It's a long way to the top if you wanna rock 'n roll". I realized my shortcomings by my early 20's but never gave up the love of performing and being a musician. Having made a respectful upper middle class living in "business", I buy affirmations of my avocations. I will never be Sterling Moss, Nigel Mansell or Graham Hill, but I have 2 vintage British sports cars in my garage as part of beloved things I collect (because I can). If you're a working musician, I respect your efforts and empathize with your struggles and sacrifices.
@@boomerang1125
Thank you. I’m glad to hear you found a happy medium …
I'm saleing a 1958 Martin D18e.
The Cobain guitar to a tee
Just a few #s off.
Very interesting. Even more relevant today as we are entering a time of global financial turmoil. I have a small guitar collection. I have 0:06 been buying, selling, and collecting guitars since the 1970’s. My guitar collection has saved my ass several times over the years. I went through 2 divorces and sold my collection each time to get back on my feet. I may have taken a bit of a loss on the sale, but it was enough to get started again.
Surprised the ex didn't take half the guitars
@@The_Macaroon Fortunately it was an amicable divorce. I kept my things, she kept her things, and split the money from the sale of the house. Will never get married again.
@@shadoobie amen to that brother. Kept the guitars that's the main thing!
Guitars are a risky inflation hedge. Unlike food and other necessities, guitar manufacturers can't just raise prices because people don't need to buy guitars. Other people will also sell guitars if they can't afford higher living costs.
I agree with the theory of what you are saying. In practice, if you track the data, it has kept up. There are two additional factors 1) Specific guitars have the rarity and popular culture factor which make them well exceed even equities 2) Numerically there is an expansion of guitar buyers globally due to globalisation and formerly developing countries getting much more prosperous
@@ministryofguitar The inflationary scenarios you described are severe. If there is ordinary inflation, then you have a point. When inflation gets really bad, people struggle to pay for the basics needed to live. The last thing on their minds is buying a guitar. You might find a rich person to buy a special guitar, but there aren't that many rich people around and even they get more cautious when the value of their money is evaporating.
If you truly like your guitars hold on. Not a time to sell unless you want to lose hundreds of dollars.
Absolutely love your content!! It is critical to be diverse in your assets and what better place than guitars.
Well, okay... This is one of the things that suck about getting older: you can always remember when things were "better"; like milk at 25¢ a quart, or tickets for the Filmore East at 2, 4, and 6 dollars to see three top bands.
Musicians are historically strapped for cash, as are most "artists" or those who live life as an artist. So there are always good instruments available; ones made out of real aged wood, even rosewood!
But here in NYC there's a saying at the music stores: That guitar is worth (put a number here), until you want to sell it.
That couldn't be more true.
As boomers are dying off (myself included) there will be many nice guitars coming to the market. I'm not wealthy by any stretch but I've got 10 guitars left that I actually play, including my first which is a desirable vintage Gibson I paid $150 for back in '69. And this is what most "collections" are like. Since guitar prices first made the news back in the 80s , and the number of guitar players has grown astronomically, there are A LOT of guitars out there. And there's this mythological thing known as "supply and demand"; Google it, but remember, that it's only a half-truth.
The big mistake people make is in thinking that their guitar is so special that it's worth a lot.
The first time I saw a used Squier being called "vintage" and asking a price above its original retail I knew that money had driven the world insane.
No... greed is NOT good!
What everyone reading this is going to find is that their guitar, even those having high "intrinsic value" (meaning what it would cost to make one today) even those will not be sell-able for what you thought.
Case in point: I had a '75 Strat I needed to sell about 10 years ago that was amazing. These were listing for like $2800 at the time - I priced mine at $2500, ready to go as low as $2200. Two years later it finally sold for $1800 to a guy that loved it but could only come up with that much. At least he was a really nice guy who I knew was going to cherish it. And that's what a guitar should be: an instrument, a tool you use to create art. Not an "asset" or investment instrument. It doesn't work.
The only guitars that maintain high value are rare or historically significant, not a $50k reproduction of a famous guy's iconic instrument.
Not a Squier (though there are some great Squiers). Not a '70s SG (which were crap when they were new). And not your guitars.
Even '59 Bursts are selling now for half what they once did. When Jimmy Page's #1 comes to the auction block, it will fetch a record price; but you will be able to buy a nicer one for a small fraction of that price.
Another thing: Many of the guitars valued over, say $10k, are fakes. Fakes only an expert can spot, and I mean a "real" expert, probably one of us boomers who've actually seen and played many examples of the real deal. And from, what I've seen, a significant number of Gibsons and Fenders found outside the US are copies; maybe as many as 50%. And why not? How many people outside the US have actually touched a '64 ES-335?
Putting guitars into the investment space, like paintings in Christie's auctions and such, was a mistake. It was the lust for a "buy low-sell high" item with sex appeal and it made no sense from the start. The art market is loaded with fakes, there are films about this on Netflix and Amazon that are very educational. And, in the world of fine art, people who do appraisals are highly educated in art history and every detail of the works, materials, techniques, etc. I mean they get degrees and work in museums before they're in the newspaper for having bought a 20 million dollar forgery.
So this is what I know from what I've seen over the years. My opinion at this point in time is: if you have a significant investment in collectible guitars, now is a good time to start thinking about beating the rush to market. At very minimum, don't think you're sitting on a comfortable nest egg that can't/won't lose value.
It may already be worth much less than you think.
Good luck.
Thanks for very great insight. Really thank you
Spot on commentary about guitars right now. I concur 100%
Well said. I think I also used the term “tools”. Because that’s what they are for a REAL musician. Not a backdrop for a video , or a collectible. It’s like if I went and bought every Snap on wrench in the country. “But hey , they’ll be worth a lot of money someday. Who cares if mechanics can only get craftsman anymore. I’ll get rich. “
Japan resident for 25 years, and a player and performer.
Very informative video, good one!
The yen situation is bad, many of my friends have cancelled travel plans. I have a U.S. credit card-bad idea.
It really is a wonderful place to both buy and try guitars. You can try the most expensive guitar at a shop, no one cares what tax bracket you look like. That said, guitars as instruments and as investments are not the same. Every time you ;play a guitar as an instrument, it's a little less valuable as an investment. There are also guitars that are sought after by collectors-Orville, made by Gibson for the Japan market comes to mind-but the ones I've tried are less than overwhelming.
Thank you for sharing. Really appreciate your perspective
I had an encounter with a PRS bolt neck guitar many years ago at a price I wish I would have paid now. I have owned a few Japanese guitars and one - a Vantage - I really regret letting go of. Wonderful craftspeople.
Under inflation, here is a well-balanced portfolio: Bitcoin, Ethereum, Gold, Silver, canned food and ammunition. And you should own at least one guitar if you are a guitar player.
1 acoustic and 1 electric and everything else yes
Will forward this video to my wife and convince her that I need more guitars... lol!
My G5421 Gretsch I bought for $339 new now does $445 new nowadays. Affordable reasonble quality guitars are going up for sure.
The Sire S3 and Squire CV's are going up in price as well.
No one is talking about the M1 money supply here in the US, which is unfortunate. You can’t correlate all the financial data and then make some educated predictions about your future without that piece. The average consumer, poorly trained in Macro-economics, doesn’t know the difference between fiscal and monetary policy. The net result of that ignorance is politicians and a complicit media being able to mask what is actually happening to the global economy post COVID and the disaster that looms ahead. Buckle up, it’s going to be the bumpiest ride the world has ever seen in the next 36 months.
Care to illuminate the difference between fiscal and monetary?
@@3Torts the Cliff’s Notes version is Fiscal policy is how much the government spends (unfortunately irrelevant to how much they take in from tax revenue) and Monetary Policy is how the Fed (a non-Federal entity with questionable roots and charter) controls money in circulation and adjusts the bank “borrowing” rate. Read the Creature from Jeckyll Island for a deep dive in the Fed and its issues.
@@3Torts😂 that's your question !?
How about "care to enlightenn us on the next 35 months and what to expect" would have been pertinent to the topic. You just let your ego control your body and mind.
@@auntjenifer7774 ...LOL. How high are you?
The M1 supply has steadily gone up since the great depression. This year it has gone down for the first time since then.
Monetary policy is what the fed does
Fiscal policy is what congress does
I believe OP says that we are headed for a hellacious crash
My Guitar's are my bread & butter 🧈🎸 my passion 🎸 my happy place 🎸 24/7 go to🎸
The things we guitar addicts tell ourselves. Thanks for making me feel better about buying more guitars!
Japan has been in a recession since 1990. I still remember the commercial in 1989 where it stated Japan would be the world economic leader. That was 34 years ago and they never recovered. Japan is also dying off because young people aren’t getting married and having children. We have a cultural/ generational correction coming to the world economy. I ran forging hammers for 30 years and half of that time was spent making parts for Harley Davidson. The market is over saturated with non essential retail goods whether it’s guitars, motorcycles,boats or whatever other items people can buy or get loans for. My adult children are millennials and we have no cultural connection. Once the pre boomers and boomers start dying off we’ll have an even bigger glut of these items. The dollar is a fiat currency that is backed up by the U.S. Military. It’s a very intricately designed and tangled web.
Thank you for making this video most of us would love to show our wives. Very nice. Very logical.
haha. that looks like the purpose
This only pertains to the high end market to be clear. Medium and low, is too saturated. Coupled with the fact that the guitar market is the softest is has been for half a century.
I agree. It was difficult not to see this coming from here in the U.S. We are barely getting by, here, and I noticed the low prices of Japanese products. I only hope we do not have a world wide collapse. Interesting.
The US government accumulating debt like no tomorrow is worrying for the whole world
Dude. Your coat collar is doing some crazy stuff.
Wages have also went up, the # of hours required to buy a guitar is still about the same as 25 years ago. ie. 25 years ago I bought my first JS1000 Ibanez for the equivalent of about 225 hours of minimum wage, before taxes, at the time (Canada), that equals about $2,900 USD today ($17.4*225/1.35... cad min wage*hours/exchange), the exact price the equivalent/modern guitar is listed on Sweet Water at this moment. So while the price has went up, it's still going to cost someone the same amount of work. Also the PRS example of $2.5k to 3k over 5 years only equals 3.7% annual return ((3k/2.5k)^0.2), plus your time dealing with people interested in it or hassle of sale.
Diversity is the key. You are correct that money gains and loses value like any other commodity that depends on supply and demand. If you have assets and currency becomes worthless, you still have your assets to trade since you will not want to sell them for a currency worth nothing.
Excellent video. I used to have a series 7 license. I get it. There are some famous guitar collectors in the USA. These people are aware of exactly what you stated in this video, and openly discuss it (Between themselves) as most people in the USA do not have 1 million dollars or more invested in guitars. I am certainly subscribing to your channel and following your advice and updates. Great job. Thank you.
I like your reasoning. It's tough when there's a collapse. In terms of the difficulty of hanging onto a physical asset like a guitar collection. Nevertheless, it's something to think about
You say your guitars are (relatively) worth more. Only if you can find a buyer prepared to pay what you believe they are worth.....in the event of you selling them. And another significant factor....if , for example, the Singapore Dollar does crash.....you won't be finding buyers in Singapore. They won't have the money to buy them. The guitar is ONLY worth what someone is willing to pay....NOT what you may believe it is worth.
YES!
I didnt buy my guitar as an investment i bought it because it sounded great and still have it and play it after 30 years i wont be selling it we have been thru alot over the years
Great video! Amazing foresight.
Thank you for your kind words
The BIG problem with your argument is that when the dollar drops guitars will be the LAST thing people will be buying. The first thing people drop when money gets tight is entertainment.
My Gibson Les Paul ,& fender Stratocaster are worth $6,000 each! Yes they are an investment!
Wow-I didn’t realize this! Funny thing is my guitars all sound either the same or they have gotten better with age. Whether it my Martins or Gibson acoustics or my SG’s, Les Pauls, tele’s or strats-they all sound great. The money I purchased them with has already got me what I wanted-the joy of owning and playing these beautiful instruments. I guess I never looked at them as securities or investment property? Stupid me.
I own a 1974 Gibson L6S guitar and a 1974 Fender Mustang bass. Dunno what they're worth but they must be vintage.
My question is this.
Who sells guitars??? I buy them to play them. I’ve got some ive had since the mid 70’s.
Yes, I only have a dozen or so, but each one is different. I don’t have multiples of anything.
I learned to buy ONLY based upon how I value things, as soon as I was old enough to buy things on my own. it lead me to not overspend. it keeps me from the stress of worrying about the myriad of things outside of owning said item. teaches me to enjoy something for what it is, and nothing beyond that. keeps my mind clear, and perspective free of the tumutuous nature of economies and other's whims.
ownership is not affected by market fluctuations. unless you have invested money you might need back, into them. or you are considering acquiring more. just offering a different perspective....
Regular People used to collect mid level art and antiques. The market is moving toward vintage over antiques and functional over admiration for the collectibles. I’ve got my 1952 0018 just itching to see the world but I can’t let it go because the sound is so good. The 1990 Gibson J45 is the player though.
hedging with guitars sounds great in theory, but in reality - if I am a Japanese person and value of my cash just went down by 40% the last thing in the world I would be looking to buy would be guitars that became twice as expensive. I'd imagine that at that point guitar market in Japan became quite illiquid and no one was buying.
Two thoughts. 1) the time to hedge is certainly not after shit has hit the fan . The time is earlier 2) sell overseas. guitars are a global market. While the yen was collapsing, guitar prices globally were rising.
Great timing, I’ve been looking for a mint Liquid Metal Red FRX and was *just* checking into shops in Japan for a deal given the currency challenges. You’re right about having a small bit of hard assets. I have taken the same hedge but in art/watches/cars. I have always been a fan of liquidity and freedom vs owning a bunch of stuff, but also understand what could happen here in the next year or two as countries begin selling treasuries, impacting USD supply, plus inflation. Could be an ugly period of stagflation ahead in the US which will impact global markets. It’s good to be diversified and hard assets should be a component for sure you are exactly right. Love your content, very relatable, thanks! ✌️✨
Not sure I understand the logic here. Let's say I have a bunch of guitars, worth $50000, today. Let's say tomorrow my bank accounts - along with everybody else's - shrink 40-50%. Basically, locally, there'd be no money for buying an expensive guitar in my collection. So, are they really worth as much or more as they were before the crash? Maybe, but - it seems to me - only if I sell in some foreign market that isn't getting hammered by the dollar crashing. And when the dollar crashes, my experience is that the rest of world tends to follow in some form of turmoil as well. Obviously, I'm no pro money manager, but applying a bit of common sense says I'm practically broke, and own a ton of guitars I can't move.
It's a good clarification.The point is to hedge, not put all of one's eggs in one basket. Also your stated argument assumes a dollar centric, US centric economic view of the world, which has been true post Bretton Woods but the uni-polarity is fast reducing. To make things worse, the US Government's debt accumulation is doing it no favours.
Long story short, don't assume the whole world's economy crashes because the US dollar crashes
It's not a bad idea to have some guitars, but a "big chunk" of your money in guitars (one asset) is not a good idea. When there is a widespread downturn in the economy, people won't have money to buy your guitars. You can't eat a guitar. It won't heat and cool your home. It won't put fuel in your car. It won't buy sundry items you need to live. It won't outperform industrial commodities. It won't outperform precious metals and real estate in the inflationary scenarios you mentioned. The best thing you could do is be diversified across asset classes. You will endure and even thrive with the assets I just mentioned.
Yes agree. Diversification is key. I realize big can be interpreted as ‘most’
@@ministryofguitar I like to think of guitars as instruments I use to enjoy life, not so much as investments. If I buy a really good guitar brand, it'll probably increase in value over time, but I don't count on it to live. If it holds value, that's great. If it doesn't, I receive the value of enjoying it to play music. I can't lose.
I would never look at guitars as an investment option. It’s a hobby and there is not a high enough demand for for it. It’s incredibly hard to turn it into cash when you need it. There are much more liquid investment options.
Thank you for sharing a unique perspective!
I’m not a collector. I am a musician. I have some stellar instruments. I play them all. I have sold 2 instruments, both mandolins, in 30 years. I regret both sales to this day. It won’t happen again unless I absolutely have to. WHICH I WONT.
Yes
Japan has been manipulating its currency since the early 1970s. I lived in Hawaii and Japanese tourists were rich compared to us. Americans would come to Hawaii to sit on the beach. Japanese tourists would come over to shop!
The Yen was too cheap for sure. That’s one of the things they were forced to change in the plaza accord and then that created a whole new set of problems
Please make a video over the price drop in marshall amplifiers. Seeing my dream amp (marshall jvm410h) drop from 3,200 to 1,800 brand new.
1800 USD for a JVM 410H is nowhere near the current price. Marshall products have dropped in price due to a change in distribution, but not to that degree. Unless you have a link to share?
Look up how they are not made in UK any longer. They started using crappy foreign parts and some YT videos exposed it. They then dropped prices bc people stopped buying new crappy component made Marshalls. The new owners are really screwing up Marshall and now the old school Marshalls will be more valuable over time. Boutique builders are also making much better hot rodded Marshalls.
@@hyperbolekid😂 perfect name.
@@auntjenifer7774 ua-cam.com/video/lFuTws0KQt0/v-deo.htmlsi=fTnDfRpaaY8DVq1B
Have fun w facts auntie
,👍
Ive held my 1958 Martin D-18e since 1999. I thought for years it could be Kurt Cobain's.
Now i know its the sister to Kurt's. Im thinking of saleing it.
For the right price.
Assets, as the rich know well, are the best protection against inflation. Because the ratio of money to assets/resources = zero, if money goes down in value, then assets go up. And since inflation is far more common than deflation, assets like houses, mines, guitars, factories, etc are the way to go. Plus, you can use assets as a passive source of money, by renting them.
Great video! High end guitars that are rare will go up in value for sure. The crappy lower budget guitars that have ample supply will fall in value. Have to be a collector that knows what to buy. Just like any other asset collection.
I'm humoured, an interesting feature about my humble collection. I must admit, my collecting has seen me make very good money from selling at select times. Nice to remind myself of beneficial reserve if disaster struct even though I do enjoy owning them.
Some of my guitars have increased greatly in value. If, God forbid, I needed to sell some, it would be difficult to move them at a decent price given the soft market. I definitely agree that a bank is a terrible place to keep your liquid assets. I prefer gold, silver, mining stocks, and even a bit in U.S. Treasuries (currently paying over 5%). This worked out really well for me when I bought a bunch in 2006 and sold in 2011. This time I expect it to be even better. This will allow me to pick up some amazing guitars in the future. I enjoyed your video.
I fully agree on the portfolio mix. Guitars are at best a tiny portion of the portfolio, a very small hedge (certainly single digits, no more)
Well done my friend!! Thank you for that perspective. If someone wanted to buy guitars for an investment, I’d think it’s pretty safe given that the pleasure of playing and owning them is the ultimate payoff. At least if by chance you lose money, you got something out of it. Can’t say that about a boring stock 😃
So I apologise if I sound stupid . But I just want to check something .
So the prS guitar you mentioned that was worth 7,000 USD went up to a value of 21,000 ?? That’s ridiculous and a bit terrifying for Japan . It does concern me as I play Ibanez guitars and I’m fond of them .
While I am not likely to part with my guitars ever, I can understand that you are trying to help musicians , guitarists and collectors alike . I respect that and thank you so much! I’m yet to finish the video but I would like to ask a question . I have my favourite guitars and I don’t see myself buying a new one soon . I’m interested in a nylon string acoustic but otherwise I’m happy. The question is as a guitarist , are we likely to experience a big rise in guitar prices worldwide? That scares me because while it would be good for guitar shops , it is not such a great deal for musicians
So the prices in USD just went up about 20%. But because the Japanese yen declined vs the USD, so the price in yen went up much higher . The point is not that guitars will get much more expensive. Used Guitars just keep in touch with inflation usually. The point is that sometimes individual currencies are volatile so guitars are likely to retain their global value even if your countries currency has problems
I always bought instruments that were meant to be played, not stored in a humidified room. Even the vintage gear; it has to be played.
Collapse happens very slowly…. then suddenly. Also, asset prices deflate after hyperinflation.
Japan is guitar players. World And tremendous love for music
You have to be a VERY sophisticated guitar buyer to just buy the guitars that go up in value in real (inflation adjusted) terms. Most guitars decline in nominal value, especially those that sold for less than $500 when new. And comparing guitars to inflation (fiat currency) is like comparing diamonds to poop. Governments are destroying their own currencies in order to prop up their stock markets. Instead, compare guitars to Gold or Silver. My bet is that precious metals do better, if you compare them to a portfolio of guitars.
i would be interested in a video to know more about not being able to bring guitars into japan.
If you buy guitars to collect rather than play them then the easy word is 'tough.' Those who buy to collect make it much more difficult for those of us why buy to play them.
Thanks for sharing your perspective. As for me, I buy for the a rwason that I want to play it. I do not look at it as an investment.
please study more on the real Japanese debt situation. the reason for the cheaper Japanese Yen against USD is mainly due to the interest rate and ignorant people working for the Ministry of Finance.
Someone wants a black USA Stratocaster standard 1990 ,modified with Lace Sensor and EC treble boost?
On the other hand, if you play guitars, you may ignore this tripe.
Your guitars are only worth what someone is willing to pay. If shtf, then people will be struggling to meet their basic needs. Your guitars will be next to worthless compared to a months worth of food shopping, or a car repayment etc. Same happens with precious metals such as gold; people may have it and say it has x value, but when they need to use it they can't cash it.Try buying some food using a piece of gold. The only ones who will touch it are the brokers/banks and they will have their own finance worries. So you have a pretty metal that you can't do anything with.
Very interesting, thank you.
It doesn't apply to me though as I am a guitarist and I use my guitars frequently playing and recording and they are my babies.
Thanks for the widyeo.
Guitars will make awesome barter currency, if the world ever gets to that. Strings are a smaller denomination, but could become more valuable because no matter how many guitars you have, you can't play them without strings 😉
Same here in Norway. because of the collapse of the Kroner everything is %40 more expensive.
Interesting video. Just subscribed
Thank you
Prof Richard Werner who invented quantitative easing said that they went in too hard with the scheme and debased their currency.
i'm assuming you also insure your guitar collection as well? how much does that cost over a year, 10 years?
Most Guitars I have are for me. However, as I with most things I buy, I look at resale potential.
Do some Japanese tourists that visit America, and want to buy guitars here, have trouble bringing them back to Japan?
I am thinking that buying Japanese guitars at this time will be good since dollar vs yen is great. So Japanese guitars are cheaper in US dollar . Once Yen comes back up it is going to be worth more in US dollars. Now say you buy a Japanese made Fender which is not any less quality than an American made one for 1299.00 in US dollar and the Dollar goes down you may sell it in higher Dollar amount. That is a hedge towards your Dollar value. Tell me if I am right. All my guitars that I bought around 2020 to 2022 have gone up in price maybe around 20% . I am sitting happy cause the money in the bank is losing purchasing power because of high inflation .
It's a great time to buy Japanese guitars for sure. Also, on the guitars going up 20%, that would happen if you bought used guitars. Most new guitars usually unfortunately lose 20-30% the moment one buys them
Ahhh, this is refreshing.
I dont play Electric ... but an Acoustic Guitar player ... On electric side Fender and Gibsons are way over priced not worth from last 3-4years if you bought from 2021... But its all depends upon what you buy... From Acoustic point too Martins which i play and own.... Customs will retain (Good Choice of wood) and will be a good hedge against future
Investing is quite literally just gambling. You are buying something, whether it's an asset or a stock, with the hope that it will be worth more in the future. Profit is not a guarantee.
I'm aware that my guitars are worthless to others, despite how good they actually are. The only one worth what I paid is probably my Squier 70s Jazz bass. I'm left handed, we don't get a lot of options, so I modify my guitars. The only one I haven't touched, apart from my acoustics, is the Jazz bass. That's fine though, I'm a player, not a collecter. I could play that Jazz bass for the rest of my life and be happy. My other guitars are so good, and testing videos + my own tests have killed my interest in buying more guitars. Maybe the day will come when I don't want poorly painted guitars anymore, but I'd have to justify the high price tag of a new guitar when the one I already have plays so well.
Ha that’s what I’ve been telling my wife every time I buy a guitar. The Pete thorn Suhr has gone up. The Ibanez Az 2204 Limited Edition KB Koa wood is worth way more than I paid. The Novo Guitars are holding there value.
I do wonder if the classic guitar market will fade as the boomer generation fade away Just a thought.
it's an open question. I have shared some thoughts on it in other videos
Generation X also plays guitars. So does the older Gen Ys, they were the ones behind 2000s indie rock craze. People have to get over this retarded boomer fixation.
i can feel you and many in the comment sectiin...are really music lovers.....!!!???…such a disgrace when money talk in arts....
I’d say the one thing about a good guitar is, it gets to live indoors. So unlike a car, it doesn’t rot. This is a core difference, it’s different for pro players, they leave the house with theirs, unless they get sponsored by somebody which is useful. My motorcycles used to get vandalised, and a guitar friend of mine said ‘Need to get a hobby where you don’t expose your favourite things to some idiot in a car park.’ Twice in my lifetime, that I recall, our UK pound has equalled $2.50 US or more. Once that happens, a correction will be made to block it going further. Patently however, you could buy at the right time and sell later, and make double your money (either way, depending when you buy & sell). Circling back, my most expensive guitar is a Chinese-made Squier. It’s about the best one the brand made at the time. It’s lighter and smaller than an actual badged Fender 6-string Strat, and I drove over 300 miles to Norwich to buy it, Candy Apple Red being in short supply at the time! Wasn’t even brand new either, it was shop-soiled. But it’s a lovely guitar. That’s all that matters, and the feeling as I drove back with it, on that sunny day. ! Take care all.
You lost me at “guitar collector “. You do realize guitar players HATE guitar collectors. YOU ARE THE ONES DRIVING PRICES THRU THE ROOF!!! FOR YOUR OWN PERSONAL GAIN. WE PLAY FOR HUMANS EMOTIONAL GAIN! But because y’all have driven up pricing. Working musicians are forced to use inferior tools to do our job …
the last four guitars i bought i was able to sell them for twice what ive paid for them. but i buy mine from pawn shops so i havent paid top dollar in 20 years for a a guitar
Food for thought! Thank you.
Once again, another Video of Quality, Meaningful content, I love what you're doing here! You had mentioned your Indian Upbringing, could you make a video on the Impact of Music in India, culturally, Socially, as especially religiously. I'd love to hear your perspective on this.
I'm planning to make a video on the Indian side of things. It's in the pipeline
Great video! One question, and not to be pejorative because I am Singaporean myself. How valuable are used guitars in Singapore when Singaporean used guitar buyers are often very aggressive in their negotiation/purchasing? The "lowballer" carousell stereotype is based in a certain truth. I'm sure you have experienced this yourself with insulting offers from either local buyers or shops (I won't mention any names of course). Are you confident that you will be able to sell your guitars when you want to? For me personally I've stuck to buying stuff that I won't part with because I know that I'll take a serious haircut if I try to sell lesser known Japanese boutique brands here, it's just a very limited market. I do think that brands like PRS and Gibson would definitely put you in a better position!
It's a very good question. I have a couple of thoughts. One is, the market in Singapore is very limited. Lowballers aren't unique to Singapore but it definitely takes a lot more time to sell here. The key is not to be in a hurry to generate cash from the guitars. I have pretty much sold every guitar I have wanted to via Carousell but it has taken time.
There is a bigger point related to this video. The hedge of the guitar portfolio is a global hedge. Selling abroad is always an option, it just comes with more transaction costs. To that end, I have made sure to have a track record (for my own confidence and that have buyers) of selling guitar overseas. Building a large guitar portfolio is not a passive activity, it is only for the most involved, but it is very rewarding as one can play one's assets
@@ministryofguitar "Playing one's assets" has been the excuse I give my wife....and it's working! ....it's also true...life's good.
I have 1 acoustic and 1 electric and feel rich every time I pick one up.
If I had 3 of them I would give one to someone who needs it to worship God
I’ve been living in Japan for the last five years and saw the Yen’s drop. Americans living there were buying stuff like crazy. I bought 30 guitars. Lots of Japanese made Strats and Teles. I just moved back so I can sell them and make probably 3-4 times what I paid.
Is that why the MIJ stuff has been cheap in the states? I saw a lot of aerodyne stuff going for $600 recently, and some of the JV modified stuff is dropping below $1k, sometimes considerably below.
I can but a Japanese strat from Japan right now for $300-$400 and it's been that way for 2 years at least. Gibson SG special classic for $700 plus shipping in Japan. It would cost $1000 in the USA so the Numbers line up.
And greedflation will keep their “value”high.
Japan is in population collapse hard, and the US also so prices dont go up wen fewer people are competing for them... so collecting stuff in population collapse culture or collecting stuff where there is population is growing and there will be more and more people wanting the same limited stuff... how they become more expensive??
Inflation is heavily underrated. Given you have 100‘000 US$ on your bank account and a yearly inflation rate of 2%, you will lose 10x2%=20% of that value after only 10 years, even though the 100‘000 US$ will still have a nominal value of 100’000 US$.
Great video! Guitars are a hard asset, like gold or ammunition!
A very interesting video. I am not a financial expert by any stretch but I think the preservation of value in a guitar collection in Singapore is fundamentally different than a guitar collection in the US. IN Singapore the guitar collection is like any investment in US assets, in fact he might be better off just holding an interest bearing US dollar bank account. He is not valuing his collection in light of the relative supply vs demand of the guitars but he’s using the collection as a currency hedge.
You are very correct. It is a currency hedge in Singapore as opposed to the US. The second nuance I haven't articulated in the video is that this does not preclude other things in the portfolio like indeed bonds, gold etc. Meaningful significant guitars can be a small part of the portfolio, albeit one that one can enjoy if one is a guitarist
I only play acoustic guitar nothing else I don't need electric guitars just acoustic guitar they are not noisy
The many houses I’ve built and sold in my life in Northern California are worth many times more today than when I built them. The guitars I bought and sold in my youth have appreciated at a similar rate, and likewise my perfect 69 Dodge Charger would be untouchable. It would in fact be way too painful to re-buy my Charger or even a few of the guitars I sold while in college. House and guitar prices are supposed to be crashing now. Haven’t seen it here. Not yet anyway…..Biden caused world wide inflation that we’re all stuck with. Don’t expect prices to ever return to sanity.
The same could be said about many items since the currency is deflating.
You buy music gear and pay a premium
You go to sell gear and even though your listed mint condish guitar is half the new price, it wont sell.....the reason? people dont have money, but they do have credit, so they will pay full price to pay it off a bit at a time and pass on saving many hundreds of dollars because they dont have the money and refuse to save for purchases
Guitars are certainly a store of value and can increase in value over time. However, they are illiquid and require weeks and even months to liquidate
I don’t buy guitars for investment. I buy them to play them. That’s why i don’t have that many. The hours of enjoyment, blood, sweat, and tears you put into, that’s not something you can put a price on
Why not both? Because I enjoy playing them so much it only makes sense that I should collect them as well.
Strats cost $200. Les pauls $500
Any more is a rip.