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UK Banking, low interest rates and GEE-TAR'S

Im going to start with a disclaimer, Im not rich, Im far from it, but due to good luck more than intelligence I have a little bit money saved up in the bank.
The bank's "giving" me about 0.0000000000005% interest on my saving's.
So, the other day I spotted (on the auction site) a nice s/h Gibson ES339 for sale. It had a buy it now price of £1000 plus a smallish delivery charge. It made me think that if I bought it that come rain or shine it would always be worth more than the asking price ,31662254_1021744971318330_6762514801705877504_n.jpgand if I bought it I could probably sell it on at a profit of more than 0.00.....%. I slept on it. Breakfast coffee made I decided Id take the chance and buy it. "****" where has it gone? The auction had ended but the seller had relisted it. At £1599. So I gave myself a kick up the rear. A big pricing mistake by the seller and a missed opportunity for me!
Putting that behind me, Im thinking that buying good quality guitar's to keep for a shortish time will be fun and Im certain give a better return than just letting Barclays Bank hold onto any money I may have. I think that a buy one, sell one, buy one....will give me the chance to own guitars that I might not otherwise try.
Can anybody see any flaw's in my plan???

dr bonkers

Fractal Fanatic
My advice, as I have seen people make investments in "always appreciating assets" that due to one unforeseen event or another performed as a "depreciating asset " when in a time of crisis, is to be very careful.

Ask yourself, how long could you stand to wait to convert that asset back to currency in an emergency before you would be in financial straits?

If the time period you are willing to wait is less than a year to get your price and the current market value (prices that the asset sold at) are not at least 20% higher than your purchase price, the low ballers may have you facing a loss.

Assets as a store of value that are non-essential are a very great risk as the demand x years from now may not be as great as it is today and the supply of the asset class available to purchase may be greater at that time rather than the demand for that asset versus the situation as it is today, which could force prices paid downward.

If you can't afford to wait to liquidate in an emergency and can't afford a 20-40% reduction in value at the time of sale, such an investment may turn out to be calamitous to you. YMMV
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As others have said nothing is certain.

But I came to the same conclusion about 3 years ago, since then I've bought and sold a lot of guitars. My rule is if I like the guitar (meaning it's something I'd like to play or own) and it's well priced (meaning at market or below) and I have the money - I buy it.

Over that three year period I've ticked off owning some instruments I thought I'd never even touch, got to meet some great people and had a good time.

And overall I've seen a much greater return than my bank has offered.

So it can and does work.

Caveats - if it's cheap, 99.99% of the time there's a reason - people aren't that daft, and it's very much buyer beware.

Not many of the markets are as liquid as you might think, if you need to get to your money quickly, this isn't for you - things can take months to sell, sometimes a longer than that - and a couple of times when I've needed money for other things I've sold to dealers, basically taking little/no profit in order to get the funds.

You will make mistakes if you do it enough, meaning you'll buy the odd dog.

But overall, I'm very happy doing this - I've found guitars that I've never enjoyed and now love, and it's a fun part of my hobby.

Worse case I've lost a few hundred pounds but had the pleasure of ownership, so I'm really happy - best case I've come close to doubling my money.

I'm in the UK too, so if you want more specifics - pm me


Fractal Fanatic
Considering that expensive guirars are increasingly the domain of a dwindling older group as the young increasingly care less about guitars and guitar music I wouldn't be so sure as to think that the will only get more expensive. And we still have to await the guitars that will come on the market as boomers will start to downsize, or their kids will sell them off as part of their inheritance.

I reckon, as with every bubble, the trick is in when knowing to quit while you are still ahead. Personally, if I had the money I'd buy gold, not guitars as an investment. Or real estate. People will always need a place to stay, to build or to grow food. Guitars? Not so much.
Thank you all for the input.
Im not looking at buying any guitars as what Id describe as an investment. Ive kind of set a self imposed limit of about £1000 to buy a guitar. Ive seen a few LP tradional's, classics, 2015 Leo Baul's (Im joking!) (but the 2015 model's with the odd LP signature) for less than that figure, but unfortunatley not locally to me. Im thinking that if I can pick up a half decent Les Paul for a grand, keep it a short while and then sell it on, part ex it and then do the same again it will be fun. Ive already got "pension" investments that are good and strong (Im a landlord with absolutely zero debt and no mortgage's to worry about) so a guitar or two wont break me or the bank. But on a serious note Id sooner take money out of my savings account with the bank that kindly provide a 0.05% interest rate (or there abouts)and buy guitars!. The UK banking system is a disgrace! My search is on in the s/h ad's around the UK and Im sure that I'll buy a guitar soon enough. But fear not, I'll not end up homeless or starving on the street's!


Power User
Checked my 401k the other day 19.5% ytd return... which is insane...
considering on a GOOD year I expect 8%...
As you see the highs and the lows on this curve, and the crazy peak we just are on, better sell off. The coming downfall might exceed all expectations.


As you see the highs and the lows on this curve, and the crazy peak we just are on, better sell off. The coming downfall might exceed all expectations.
I got 14 years before I retire - not too worried - will it go down again , yes. Will it come back - yes.
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