Investment Grade Guitars
You may be considering an investment grade guitar such as a vintage or limited edition. This is usually a very safe decision. Your money will most likely be well protected, providing you keep the instrument in the same condition you received it in. There are many reasons to invest in collectible guitars. Points of view can be offered up by guitarists, collectors, enthusiasts, and investors, but if financial gain is your m.o. than remember this; It's desire that drives the market. You can have the rarest guitar on earth, yet if nobody is interested in that particular model, than it's performance as an investment may disappoint you. You may not see yourself as a collector, nor need you become one. The true beauty of this arrangement is simple... You get to enjoy the instrument, play it, show it off, perform or record with it, whatever, then eventually when and if you decide to sell - like magic - it's worth more than you payed for it. In some cases a great deal more.
While I have always considered real estate the backbone investment of any portfolio, the market does go through cycles every 15 to 20 years. I have never seen such activity in the vintage guitar market. It may get soft or stagnant from time to time but generally it just keeps on appreciating-sometimes after a slight adjustment-even during recessionary times.
You can have a lot of money tied up in a mortgage with a big fat payment every month going out the window towards interest. No such problem exists in the vintage guitar market with very few exceptions. After all there are some guitars out there worth upwards of $250,000.00 +, but most investments in this market can be had between $1,000.00 and say $50,000.00.
I certainly feel safe with my money invested here.