The 42 Guitar Index
26/03/08 22:33 Filed in: Guitar Investing
To illustrate how collectable guitars have increased in value, Alan Greenwood and Vintage Guitar Magazine developed "The 42 Guitar Index", a list of select excellent condition instruments (14 each from Fender, Gibson and Martin) made in the 1960's or earlier.
The index initially included only guitars that had a unit value below US$10,000 in 1991, with the average value being US$3,660. In '91, the 14 Gibsons had about the same total value as the 14 Fenders and the 14 Martins. The index does not include the most expensive models like the '59 Gibson Les Paul Standard, nor does it include the budget models like the Gibson Melody Maker.
The "42 Guitar Index" chart (above) shows the updated information for the index. This year's (2008) chart tracks data from 1991 to 2008. The "42 Guitar Index" chart indicates the 42 guitars once again rose in value. From 2007 to '08 our index increased by 18%. From 1991 to 2008 the average increase, year to year, was 12%, but the index does not always increase each year. From 1999 to 2001 there was no increase in the guitar index. The increase from 2006 to '07 was an attention grabbing 54%.
Beginning in 2004, The Guide displayed how Martin, Gibson and Fender were performing as individual brands. The Fender-Gibson-Martin chart (above) updates this and shows how the instruments increased in value from 1991 to 2008. We can see that the period from '91 to '97 was a 'broad' market, meaning vintage guitars of all types were appreciating equally. By '99, the chart shows the Martin group increased more than Gibson and Fender. That continued until '06, when the Fender group caught up. In '06, some Gibson and Fender solidbody models doubled in value, while many of the classic Martin flat-tops had more traditional increases. In '07, Martins made up ground, while Fenders and Gibsons grew at normal levels.
The Gibson group requires more analysis because it contains solidbody, acoustic flat-top, and electric archtop models. The Fender group is strictly solidbody instruments, while the Martin group is 92% flat-tops. So the Gibson group is influenced in a negative way by its jazz guitars, whose trend line looks more like a pancake than the mountain line of the solidbody instruments.
Reproduced with the kind permission of Vintage Guitar Magazine.
FROM FENDER FROM GIBSON FROM MARTIN 1952 Blond Precision Bass 1952 Sunburst ES-5 1931 OM-28 1952 Blond Esquire 1952 Les Paul Model 1932 00-28 special order 1953 Blond Telecaster 1954 Les Paul Jr. 1935 D-18 1956 Sunburst Stratocaster 1958 Sunburst EB-2 Bass 1944 Scallopedbrace 000-28 1958 Sunburst Jazzmaster 1958 Les Paul Custom 1944 D-28 1958 Blond Telecaster 1958 Natural ES-335 1950 D-28 1960 Sunburst Stratocaster 1958 Super 400CES 1958 000-18 1961 Sunburst, stack knob, Jazz Bass 1959 Les Paul Jr. 1959 D-18 1962 Sunburst, 3-knob, Jazz Bass 1959 J-160E 1959 D-28E 1963 Sunburst Telecaster Custom 1961 Sunburst ES-355 1962 D-28 1963 Sunburst Esquire Custom 1961 Les Paul SG 1967 GT-75 1964 Lake Placid Blue Jaguar 1964 Sunburst Thunderbird II Bass 1968 000-18 1964 Sunburst Precision Bass 1965 EB-3 Bass 1969 N-20 1966 Candy Apple Red Stratocaster 1969 Sunburst Citation 1969 D-45
The index initially included only guitars that had a unit value below US$10,000 in 1991, with the average value being US$3,660. In '91, the 14 Gibsons had about the same total value as the 14 Fenders and the 14 Martins. The index does not include the most expensive models like the '59 Gibson Les Paul Standard, nor does it include the budget models like the Gibson Melody Maker.
The "42 Guitar Index" chart (above) shows the updated information for the index. This year's (2008) chart tracks data from 1991 to 2008. The "42 Guitar Index" chart indicates the 42 guitars once again rose in value. From 2007 to '08 our index increased by 18%. From 1991 to 2008 the average increase, year to year, was 12%, but the index does not always increase each year. From 1999 to 2001 there was no increase in the guitar index. The increase from 2006 to '07 was an attention grabbing 54%.
Beginning in 2004, The Guide displayed how Martin, Gibson and Fender were performing as individual brands. The Fender-Gibson-Martin chart (above) updates this and shows how the instruments increased in value from 1991 to 2008. We can see that the period from '91 to '97 was a 'broad' market, meaning vintage guitars of all types were appreciating equally. By '99, the chart shows the Martin group increased more than Gibson and Fender. That continued until '06, when the Fender group caught up. In '06, some Gibson and Fender solidbody models doubled in value, while many of the classic Martin flat-tops had more traditional increases. In '07, Martins made up ground, while Fenders and Gibsons grew at normal levels.
The Gibson group requires more analysis because it contains solidbody, acoustic flat-top, and electric archtop models. The Fender group is strictly solidbody instruments, while the Martin group is 92% flat-tops. So the Gibson group is influenced in a negative way by its jazz guitars, whose trend line looks more like a pancake than the mountain line of the solidbody instruments.
Reproduced with the kind permission of Vintage Guitar Magazine.