Collecting musical instruments and equipment for financial profit is a great way to combine business with pleasure. When it comes to investing in rare instruments of high quality, we’re talking about more than estimated value based on performance alone, as is the case when investing in stock options or general commodities. There’s the emotional attachment of the buyer to consider, as well.
A musical instrument carries a legacy and artistic value that speaks both to investors wallets and hearts, a fact that must be taken into account before one sets sail towards the market of musical collectible. The emotional angle can be a deterring factor for traditional investors, as it adds another potential pitfall, one that is devoid of financial reason and logic. The price of a vintage instrument is set by cultural trends that operate as much on a sentimental level as they appeal to economic prospects.
That being said, if you’re a lover of music and instruments, collecting them for profit is certainly an attractive possibility and a good way to diversify your investment portfolio. Valuable instruments rarely, if ever, lose their worth and have greater potential than most commodities for long-term market appreciation. The collector’s market for musical instruments is divided into separate sub-niches defined by different types of collectibles and countries of origin.
Vintage violins are the most popular instruments to invest in, particularly Italian violins. The financial crisis of 2008, triggered by the collapse of the US housing market, saw a significant increase in violin investments, making the prices go up dramatically. Before the crisis, a Gaurnerius violin would fetch a seller somewhere around half a million US dollar on auction. Today, that price would most likely be twice as much, if not more. A vintage Stradivarius, the most coveted of violins, won’t go for less than several millions. Market analysts are clearly seeing a rising trend of collectible instruments as alternative financial assets for private investors. Violins are currently in the forefront, but pianos are also becoming an attractive investment option.
As far as other instruments goes, market prices are generally more volatile and therefore represent more risk. Nevertheless, if you are able to purchase instruments with a great collector’s value, like a Gibson guitar previously owned by Elvis or John Lennon, you’ve got a great addition to your portfolio.
As with any rare commodity, it’s vital to research the market first in order to make an informed and sensible decision when making a purchase for long-term profit. A good knowledge of the instrument in question, connections with reputable sellers and evaluation experts are also important, as isolated markets like regional auctions often misrepresent the average price on the international stage.
Investing in instruments is something that will bring you financial profits as well as satisfaction and joy over the years, provided that you approach the practice with a sense of composure and economic savoir-faire.