Let’s open this can of worms and find the real answer.
First, let’s mention the benefits that are not financial. When you play a guitar, you are getting a type of value that can never be had with a stock certificate or a lump of gold.
When you hang a guitar on the wall of your “music room,” it has an element of an art investment. When it is a “family” instrument, it has the value of something that links you to a past relative much like your grandparents' silver serving set. All of those things are valuable, but let’s set them aside for the pure financial investment.
Obviously, the short answer is that a guitar is worth what someone will pay for it when you are ready to sell. The more you know about the instrument and the market, the better you will do with the financial investment.
When you buy a well made, new guitar, it may take a lifetime to really see a great return on that money. You should give those high quality guitars to your grand kids. They will cash in on your investment.
New guitar sales are around $11billion a year.
That is no where near the end of the conversation. Guitars are real world commodities. Savvy traders know what they are buying. On the low end, some traders actively look for cheap guitars that are easily sold for a good profit. In that process, they often find hidden treasures that translate into meaningful money. Knowledge is the key to success.
Take a look at the high end. Brand is important. Just looking at numbers, Fender, Gibson and Martin fill the top 10 most expensive guitars sold at auction. That may simply be a function of the preference of music stars. The Jimi Hendrix Woodstock Fender Strat sold for $1.3million. Peter Green/Gary Moore Les Paul sold for $2million. There are a dozen or so famous guitars that are worth more than $1million. They were all great guitars, but the player made the difference. By the way, the current record is Kurt Cobain’s Martin D-18E that sold for $6million.
On a similar note, an autographed guitar that was not played by the signer is usually only worth what that autograph is worth.
Are guitars a financially good side hustle for you? You better have a strategy.
1. Be opportunistic. A good investment may pop up at any time. Be ready at your level.
2. Players like quality long haul investment guitars. A good used guitar that you love to play will probably give you a great financial return. You will keep it playable and sellable.
3. The easily under-priced guitars that you can flip in a hurry is a great strategy. Beware of unseen damage, stolen guitars, fake brand guitars, Get a trusted group of people you can double check your thoughts about repairs and value.
Are you attracted to this lucrative side hustle?
Do you have instruments you would like to sell?
Would you like to talk to other like minded people?
Go to a guitar show.
There is one in Kansas City this Sunday. March 16.
As an added bonus, “Every Guitar Has A Story” will be videotaping new episodes.
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