Guitars associated with famous artists or possessing some form of “mojo” tend to increase in value over time. Even a Fender Telecaster from the fifties may prove valuable if it remains in good condition.
Pricing across the vintage guitar market has come down, making now an excellent time to buy. But what will tomorrow bring?
The Baby Boom Generation
Baby boomers have purchased numerous acoustic guitars. This trend is significant; manufacturers of new guitars report that, for the first time, most acoustic sales are made to people aged 35+.
The market for vintage electric guitars has become much more diverse over time. Gone is Stratmania; now, there is a strong demand for other styles, such as hollow-body models. Gretsch also enjoys strong demand.
Most buyers of new acoustic guitars prioritise balance, intonation, and recording-friendly tone when searching for their ideal instrument. Furthermore, they want a working truss rod. Unfortunately, new instrument manufacturers cannot always meet these demands as easily as vintage dealers specialising in customising non-collectible instruments; many vintage dealers also know what makes an acoustic guitar play well themselves!
The Demand for Vintage Instruments
Some guitarists enjoy the sounds of vintage instruments while also desiring modern conveniences not present in vintage models. Acoustic players, in particular, demand better intonation and compensating saddles on acoustics; furthermore, they expect wider fretboards than what was offered during the late ”60s/early ’70s, as well as working truss rods from manufacturers – demands being fulfilled by many.
An amateur collector segment dominates this market, while professional and semi-professional musicians seek instruments with specific looks or sounds for playing purposes.
Vintage guitars typically fetch less than their true value in the vintage market, much like Boehm birds – which offer no utility other than being limited-edition porcelain pieces – or Van Gogh paintings and Picasso lithographs that could have been mass-produced yet command exorbitant prices.
The Supply of Vintage Instruments
The vintage guitar market differs substantially from that of stocks. First off, collecting instruments involves much greater expenses – such as storage and insurance costs – compared with buying stocks; additionally, creating and repairing instruments requires considerably more labour than manufacturing components of metal, glass or wood.
Vintage dealers sometimes face challenges satisfying buyer demand for certain instruments that exceed supply. For example, if a buyer requests a Les Paul sunburst with a curly maple top but the dealer only has plain single-cutaway models in stock, the price can increase substantially.
Foreign Buyers
Some may argue that guitars don’t qualify as art, but this argument misses the point. So many different people have highly valued guitars; ultimately, a vintage fretted instrument’s value depends on whether or not someone is willing to pay for it; like gold or coins, guitars serve as an international market; if someone is willing to spend $10,000 for an impeccable Strat, then that amount should reflect its worthiness.
Today marks a rare occurrence since the early ’70s: Acoustic and electric guitar sales are sharing customers. This vintage guitar market includes older people with more leisure time, money and interest in quality craftsmanship – similar to when Crosby, Stills, Nash & Young brought folk rock into mainstream pop music and gave an upsurge in sales of acoustic instruments. It’s great news for both guitar manufacturers as they now have a secure customer base that can support plans.
The number of instruments in the vintage market is a stabilising factor. As long as they are not destroyed by slappers or other damage, guitars rarely lose value, though a good-looking Les Paul sunburst with a curly maple top brings a lot more than a Les Paul sunburst without the curl.
Generally speaking, dealers will not turn down the opportunity to sell to a foreign buyer, so they are not as vulnerable to wild fluctuations in prices as the stock market or real estate investments. As a result, many dealers are less anxious to push up their prices to make up for the losses they suffered during the recent correction.