G&L Basses are Appreciating!

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=140728869997&ssPageName=ADME:B:WNA:US:1123

Confession: I tend to watch auctions of instruments similar to those I have purchased over the years on the 'bay. Two years ago, I bought a nearly-mint L1K for considerably less than this one went for.

I guess my point is that Leo-era G&Ls (and perhaps the basses, in particular) are turning out to be great investment vehicles. The early SB-2 I purchased about three years ago has appreciated about $150 per recent auction results. http://www.ebay.com/itm/280839612010?ssPageName=STRK:MEWAX:IT&_trksid=p3984.m1423.l2649

Though short of staggering, this phenomenon (in a low interest rate environment) is helpful in justifying such purchases with my CPA wife. Thoughts? - ed

Ed, it is always good advice to have liquidities in your portfolio. You can stuff all your money in a bank account, or buy stocks or real estate. But everything is a bit of a crap shoot anyway. How many of us would like to know the future? So in the name of 'divesting my portfolio', I rather buy some guitars and play them in the knowledge that they might appreciate and even when they don't, I at least had a lot of fun with them Just don't break the bank and make sure you know where your (price) limits are and stick to them.

- Jos

You suggest an excellent point, actually, Jos. I've got some mutual funds, CDs, bonds, etc., but I don't get any pleasure out of any of these. How many investments can actually be touched, heard and enjoyed while they go up in value? - ed

My wife is actually getting on board with the investment value. Of course, I can't see ever being willing to part with any of my G&Ls. Two were purchased mainly for their chances of appreciating and live in their cases all the time. The others are players.

I find it hard to believe the L1K auction was legitimate. The one I bought on eBay last month (swamp ash/ebony) was just a shade over $500 with OHSC. It had a bad refinish and needed some adjustments, but I will be able to have it in near-original condition (with a vintage-correct professional paint job) for about $800 when all is said and done. I picked up an all-original mahogany/maple L2KE (without case) a couple of weeks ago from Guitar Center for $550, with shipping included. It needs some minor finish repair to blend in some words and previous owner scratched in the finish, but this one will also be an excellent specimen again for a couple of hundred more dollars. I've been keeping an eye on a Leo-era Invader that's listed for $499 and not moving, but it's black and I already have too many black guitars. If it was red, yellow or even pink I would be figuring out the finances now.

When I bought the L1K, there were several others in much better condition that had been sitting for weeks or longer in the $800 range. Guitar Center got three very early L1Ks into one of their stores recently, and they've been sitting there just north of $1000. One of them has dropped to the $8-900 range with no resulting movement. It seems to me like the variability in pricing depends on whether the seller understands the value of a G&L to the discerning buyers, or just reacts to the lack of a Fender logo. I try to buy from the latter...

I understand what you're saying though. I'm finding it hard not to buy up several before the economy picks up more steam, but I also want to hold out for the rarebirds I may not see again.

Ken

Ed, it is always good advice to have liquidities in your portfolio. You can stuff all your money in a bank account, or buy stocks or real estate. But everything is a bit of a crap shoot anyway. How many of us would like to know the future? So in the name of 'divesting my portfolio', I rather buy some guitars and play them in the knowledge that they might appreciate and even when they don't, I at least had a lot of fun with them Just don't break the bank and make sure you know where your (price) limits are and stick to them.

- Jos

This is the same insight that leads many of my clients to build VERY cool car collections!

~Patrick

Ed, you have opened up a can of worms for discussion. My discussion includes 6 stringers.

A few months back there was a discussion on the AGF about people who owned multiple guitars. There were surprisingly many who really thought anyone who owned multiple guitars was a person who had personality issues or was basically screwed up. I posted a response and mentioned that my guitars were an "investment" to me. I went on to explain why and an investment guy from Chicago climbed all over me about it. He was only looking at it as a financial investment. I tried to explain all the things that guitars meant to me and what they represented and Jos is very articulate about some of these:

Jos says

Ed, it is always good advice to have liquidities in your portfolio. You can stuff all your money in a bank account, or buy stocks or real estate. But everything is a bit of a crap shoot anyway. How many of us would like to know the future? So in the name of 'divesting my portfolio', I rather buy some guitars and play them in the knowledge that they might appreciate and even when they don't, I at least had a lot of fun with them Just don't break the bank and make sure you know where your (price) limits are and stick to them.

In addition to that, the art value is up there for me. I also know that if I buy a pristine used guitar that it will hold its value as long as I keep it in that condition. After some discussion with the Hot Dog Investment dude from Chicago, I discovered that had liquidated a sizable guitar collection and was down to only a couple. I told him that I felt badly for him that his guitars had not done well for him as an investment. His reply, " Actually I did quite well". He did agree with me that they could be considered a "good" asset. So there it is folks for what it's worth but I will put money into a slick guitar anytime. I don't use the word investment with Ginny anymore but have laid the asset theory on her. Sam and Magic also seem to approve. So in the end, if anyone gets on your case about this Ed, we will back you up. -- Darwin

I like the "assets" angle! ;+)

I know who to call next time I need some help. Thanks Darwin (and all!). - ed

I like the "assets" angle! ;+)

I know who to call next time I need some help. Thanks Darwin (and all!). - ed

lol... my pre coffee morning dyslexia read that as
"asset angels"

I had a health scare 6 years ago and pulled all my money from the bank and bought guitars.
So much more fun than bank statements in the mail. My health is much better and it's good to see a few of those "deposits" are earning interest.

Ed, you have opened up a can of worms for discussion. My discussion includes 6 stringers.

A few months back there was a discussion on the AGF about people who owned multiple guitars. There were surprisingly many who really thought anyone who owned multiple guitars was a person who had personality issues or was basically screwed up. I posted a response and mentioned that my guitars were an "investment" to me. I went on to explain why and an investment guy from Chicago climbed all over me about it. He was only looking at it as a financial investment. I tried to explain all the things that guitars meant to me and what they represented and Jos is very articulate about some of these:

Jos says

Ed, it is always good advice to have liquidities in your portfolio. You can stuff all your money in a bank account, or buy stocks or real estate. But everything is a bit of a crap shoot anyway. How many of us would like to know the future? So in the name of 'divesting my portfolio', I rather buy some guitars and play them in the knowledge that they might appreciate and even when they don't, I at least had a lot of fun with them Just don't break the bank and make sure you know where your (price) limits are and stick to them.

In addition to that, the art value is up there for me. I also know that if I buy a pristine used guitar that it will hold its value as long as I keep it in that condition. After some discussion with the Hot Dog Investment dude from Chicago, I discovered that had liquidated a sizable guitar collection and was down to only a couple. I told him that I felt badly for him that his guitars had not done well for him as an investment. His reply, " Actually I did quite well". He did agree with me that they could be considered a "good" asset. So there it is folks for what it's worth but I will put money into a slick guitar anytime. I don't use the word investment with Ginny anymore but have laid the asset theory on her. Sam and Magic also seem to approve. So in the end, if anyone gets on your case about this Ed, we will back you up. -- Darwin

+1, or 2, or three more

Hi Anthony. Welcome!

I suspect as with most things, there is more than one reason. And I think both of the ones you cite are good ones. - ed