Will electric guitars ever appreciate again?

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EveryAxeAGem

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Will we ever see a repeat of the 50's and 60's where electric guitar values actually appreciated over time, with some specimens becoming treasured as rare vintage stradivarius-like instruments?

What has the possibility to appreciate in this modern age of popular mass-producers alongside lesser known boutique luthiers.

Where do you think PRS stands in this regard?

Please share your insights and views!

NB: by appreciation I mean used values eventually surpassing new prices for an equivalent or comparable model, or simply surpassing the original brand new purchase price.
 
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I don't think we'll see another "holy grail" of guitars like the late '50s LPs became. That recipe has been duplicated many times but it is the originals that are still the treasured instruments. I don't think we'll ever see a "new" $300,000 instrument. I do think there will be a run of guitars, or a small batch that become highly desirable. The PRS Dragons for example (there are many other builders producing equally impressive works of art)... possibly due more to the artistry of the instrument rather than the guitar itself. Then there's always the artist model...take Clapton's "Blackie" for example...that will always command top dollar on the auction block.
 
I suspect no.

Not yet seen a PRS go for more than what it would have been bought for OTHER than the very first year models (85/86).

A guitar has to increase by 4% a year just to pace inflation... "getting what you paid" 10 or 20 years down the line means you've actually lost money on it (and of course maintenance isn't free either - strings, polish, pro setups if you need them, that kind of thing...)
 
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Never. And it's not just guitars, it's everything. The economy is going down the toilet, and it's not just U.S., it's the whole world. Sure, there are the occasional anomalous things that appreciate in value, but ... I mean, look at eBay, people just look at that as a breeding ground for scam artists.
 
My rule of thumb when buying new was 10 years to break even and if you had the RIGHT guitar you could see some uptick in value really after 20-30 years is where guitars start to become collectable,
If you buy used that number gets easier and shorter ( IMHO )
 
Dusty Chalk said:
Never. And it's not just guitars, it's everything. The economy is going down the toilet, and it's not just U.S., it's the whole world. Sure, there are the occasional anomalous things that appreciate in value, but ... I mean, look at eBay, people just look at that as a breeding ground for scam artists.
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Property is still a pretty safe bet in most parts of the world. It can fluctuate, obviously, but the general trend throughout recorded history has been "up." :)
 
Yeah, I used to think that -- supply and demand -- as long as the population keeps going up, and the real estate stays the same, it should go up in value, but then we had that bubble burst thing, so I don't understand anything.
 
That said, if any guitars do, I believe it'll be PRS ones. They are absolutely at the top of their game, and at the top of anyone's game for that matter, IMHO.
 
Dusty Chalk said:
That said, if any guitars do, I believe it'll be PRS ones. They are absolutely at the top of their game, and at the top of anyone's game for that matter, IMHO.
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....HOWEVER - I don't see PRS guitars being romanticised for the early years like we do with Gibsons - not least of all because the product seems to be continually improved, which is also a direct selling point for the company (the quest for the ultimate tone yadda yadda), moreso than for other companies (who seem to be focused on capturing the specs of yesteryear and continually putting out "reissues"). G & F support the perception that the "original" guitars were the pinnacle of tone, whereas PRS says "the pinnacle is what we put out right now".

Unless quality of PRS guitars go downhill - then maybe.

It would also require scarcity of the "golden years models". Which I don't see.
 
Always cracks me up to hear guys who say they collect guitars "as an investment." Unless you're collecting 50's and 60's pieces, you're almost guaranteed to lose money. Friend of mine bought a Gibson LP with the G Farce tuners when the original "limited" run came out, thinking it would be a cool, rare guitar. Some of the robot hardware broke, he couldn't get replacement parts because Gibson changed the design, and he ended up trading it back to GC (and probably lost his @$$ on it). Those specific guitars probably lost more value, and faster, than anything Gibson has made in years.

Or so you would think, until they jacked their prices up for 2015, then dropped them for 2016. How'd you like to be holding on to one of those 2015's?
 
Historically, before the days of high inflation, the value of real estate lay in its capacity to generate rental income for the landowner, thus the terms, "Landed Gentry," or "Real Estate Mogul."

I'd guess they haven't got the term, "Guitar Mogul," for a reason.

They're not making any more real estate, but they're still making lots more guitars.

They didn't make many early Les Paul guitars. And when they did, players only would have one, maybe two, guitars. And there is the legend among guitar players that older is better. So they became valuable.

They make a lot of every type of guitar now, and players often buy more than one. The market is flooded.

Collecting guitars has value to collectors for reasons other than as an investment vehicle, and that's the important thing to remember. I'm not a collector, but I see the enjoyment some of the guys who collect get, and it's not really about the money.

On the other hand, you can't plug a bank book into an amplifier and get much music out of it.
 
Dusty Chalk said:
That said, if any guitars do, I believe it'll be PRS ones.
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They are good enough to be collectable, but as has been noted there are LOTS of them out there. I think there will be a few specific small runs that may someday give owners a nice financial reward: early dragons, or ME1, but I don't expect that there will ever be a feeding frenzy over any old core PRS.

If any guitar from this decade is collectible 30-50 years from now I think it is more likely to be one of the small boutique builders. A limited supply has to be part of the equation.
 
Those 50s and 60s guitars became valuable because they weren't made in large numbers, and more importantly, were seen in use by players who became demigods. If Hendrix and Clapton never picked up a Strat, we'd live in a very different world for vintage Strat prices. The sunburst Les Paul is in a special category. Only a couple thousand were ever made, and they became the favorite tool of a very small number of very elite guitarists, well after their original production was over. It would take the coming of a new guitar superhero to repeat that scenario, and given the fragmented nature of the modern music business, I don't see that happening.
 
My guitars appreciate me playing them. My neighbors don't appreciate my playing. Probably not the type of appreciation we're after here.

I don't buy guitars to flip for a profit, but I have made enough flipping cheaper guitars to buy more expensive ones.

I haven't made money on an expensive guitar yet, and i don't expect to within my lifetime. At least my PRSes should hold some value should my kids want to get rid of them.
 
The 50's and 60's guitars were made in tiny numbers. In 1959, there were only about 1,035 Les Pauls made and about 60% are accounted for in various registries. I do not think guitars would be a great place for your 401k dollars but there are a few gems out there. Many are the buy cheap and sell higher much later. Tokay, Squire Japan, Charvel 1a's are jumping up in price while later Clapton Strats are not selling in the used market.

As far as PRS goes, I am sure some will appreciate a little, the one offs, limited runs, etc. Again, not betting the farm but some may just rise a bit.
 
Some first PRS are crazy expensive, like the guitar player from the band Heart has that Santana looking guitar and it's estimated to be worth 150-300,000. I think they said Paul made if from his mother's dresser. Then you have the first Santana, and the second Santana that I believe Neil Schon owned. For a guitar to be expensive it has to be special, or at least for people to believe it's special. But I would say PRS guitars hold their value pretty good.
 
I think George Gruhn said it best. I am paraphrasing here. Sometimes guitars are rare for one reason, they did not sell well in the first place. One star picks them up cheap and the craze begins. Look at what Nirvana did for crappy Fender pawn shop guitars. Boom.

In the 80's, you could not give away a vintage F or G. No market for them. People were buying Kramers, Charvels, Valley Arts, Tyler Stratocasters, Schecter, BC Rich. Those guys are making a bit of a comeback in the near vintage market.
 
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