Bob's Vintage Guitars

Vintage Guitar Market Out Performs Wall Street

In April of 2007 the Vintage Guitar market saw gains in value of over 50%. Yes this was a bumper year with gains above the norm, but gains in value have been happening for the last 30 years and have never gone backwards.

Vintage Guitar magazine the market bible on all things Vintage Guitar, developed the "The 42-Guitar Index" in 1991. It tracks the ongoing values of excellent condition original pre-1970 Gibson, Fender and Martin guitars. Pre 70's because those instruments are the most valuable, however guitars from after 1970 are starting to rise steadily.

The average value of an instrument in their index for 2007 is a very healthy $19,706, and that represents a staggering 438% increase since 1991. This equates to an average of 27% compounded annually.

The bulk of that growth has occurred in the past few years. Last year alone showed an amazing 54% increase. Why the sudden and massive increase? Simple, stock is drying up and these instruments have gone underground in collections world wide.

There are three main brands of guitars that lead the pack in investing circles, Gibson, Fender and Martin, all American guitars. Gibson however leads the pack in the vintage guitar market and outranks all other vintage guitar brands in terms of increase in value over the past 20 years, slightly edging out Fender and far exceeding Martins.

As an example, an all original museum quality 1959 Gibson Les Paul Standard may soon fetch over US$500,000! This particular guitar made between 1958 to 1960 is not only rare, but is also one of the greatest sounding guitars of all time and has been used on many of the finest rock albums of all time.

Fender guitars, and in particular the custom colors models are still highly desirable instruments for both players and investors. If we take a 1962 Fiesta Red Slab Stratocaster from 1996 to 2007. In 1991 they sold for an average price of $10,650. Find one now and you will have to pay an average of $41,500 - this equates to a low of $29,000 and a high of $54,000.

Martin guitars have produced similar rises in value and make excellent investments as well, but the really big money is in the Fender and Gibson models.