Guitars as Investments
14/02/08 21:42 Filed in: Guitar Investing
Thirty years ago guitarists started to realise that the older guitars made by Fender, Gibson and Martin where far better guitars to play than the new products from those manufacturers. They also sounded better than the newer counterparts, and so the value of these older guitars steadily increased over the years.
In the last couple of years in particular, they have sky rocketed in value to figures that would astound the average investor. Vintage Guitar Magazine (The industry bible) developed the “The 42-Guitar Index” in 1991 which tracks excellent condition original pre-1970 Gibson, Fender and Martin guitars. The average value of an instrument in that index for 2007 is a healthy US$19,706, which represents a 438% increase since 1991 - an average of 27% compounded annually. The bulk of that growth as I said previously, has occured in the past few years with last year alone showing a spectacular 54% increase.
According to the Vintage Guitar blog, it is Gibson that is leading the field when it comes to return on investment. "Gibson 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 extreme, an all original museum quality 1959 Gibson Les Paul Standard may soon fetch US$500,000!"
The custom colour Fender Stratocasters are also highly sought after, still. "Here are the numbers on a 1962 Fiesta Red Slab Stratocaster from 1996 to 2007. It was easier to find one in 1991 for an average price of US$10,650. Try to find one now that they average US$41,500 - that’s a low of 29 grand and a high of US$54,000."
For those who manage their own self managed super fund, did you know you can in fact use your super funds to invest in a guitar? Or how about sinking your retirement money into a guitar?
An article in the Aspen Times talks about a guy trying to buy a house: "He was eager to buy a piece of property in the Crystal River Valley south of Carbondale last year, complete with a barn and enough land to have a couple of horses, but he didn't have the cash needed for the down payment."
So what did he do? "He plucked a Gibson "Gold Top" electric guitar out of his collection and sold it for US$400,000, enough to make the down payment and move into his dream home overlooking the Crystal."
It is staggering to think of the value of these guitars, and for years all of those in the business of buying them, have said: "It has to end soon, they can not keep going up", but history is proving us all wrong. At various times the prices will 'settle' for a while, but rarely if ever have they gone backwards, and the climb into the stratosphere in terms of prices, is continuing along at an unprecedented rate.
So it is never too late to 'get in' the market for a prized guitar, it can however be a traitorous thing when you do not know what you are buying. It is critical to buy from a reputable dealer, and from someone who has been dealing in these precious instruments for many years. Steve Jackson is Australia's largest dealer and knows his stuff, and with the 100% Trade Up offer at Jacksons Rare Guitars, you can not go wrong.
In the last couple of years in particular, they have sky rocketed in value to figures that would astound the average investor. Vintage Guitar Magazine (The industry bible) developed the “The 42-Guitar Index” in 1991 which tracks excellent condition original pre-1970 Gibson, Fender and Martin guitars. The average value of an instrument in that index for 2007 is a healthy US$19,706, which represents a 438% increase since 1991 - an average of 27% compounded annually. The bulk of that growth as I said previously, has occured in the past few years with last year alone showing a spectacular 54% increase.
According to the Vintage Guitar blog, it is Gibson that is leading the field when it comes to return on investment. "Gibson 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 extreme, an all original museum quality 1959 Gibson Les Paul Standard may soon fetch US$500,000!"
The custom colour Fender Stratocasters are also highly sought after, still. "Here are the numbers on a 1962 Fiesta Red Slab Stratocaster from 1996 to 2007. It was easier to find one in 1991 for an average price of US$10,650. Try to find one now that they average US$41,500 - that’s a low of 29 grand and a high of US$54,000."
For those who manage their own self managed super fund, did you know you can in fact use your super funds to invest in a guitar? Or how about sinking your retirement money into a guitar?
An article in the Aspen Times talks about a guy trying to buy a house: "He was eager to buy a piece of property in the Crystal River Valley south of Carbondale last year, complete with a barn and enough land to have a couple of horses, but he didn't have the cash needed for the down payment."
So what did he do? "He plucked a Gibson "Gold Top" electric guitar out of his collection and sold it for US$400,000, enough to make the down payment and move into his dream home overlooking the Crystal."
It is staggering to think of the value of these guitars, and for years all of those in the business of buying them, have said: "It has to end soon, they can not keep going up", but history is proving us all wrong. At various times the prices will 'settle' for a while, but rarely if ever have they gone backwards, and the climb into the stratosphere in terms of prices, is continuing along at an unprecedented rate.
So it is never too late to 'get in' the market for a prized guitar, it can however be a traitorous thing when you do not know what you are buying. It is critical to buy from a reputable dealer, and from someone who has been dealing in these precious instruments for many years. Steve Jackson is Australia's largest dealer and knows his stuff, and with the 100% Trade Up offer at Jacksons Rare Guitars, you can not go wrong.
Interview with Steve Jackson on the TV Series 'The Collectors'.
Fender Guitar Serial Numbers
09/02/08 21:11 Filed in: Fender Guitars
(American Made Guitars Only)
All Fender guitars prior to 1977 have a serial number on either the bridgeplate or the neckplate (Very early Stratocasters however had a four digit serial number on the tremelo back cover plate). Serial numbers are basically chronological, but there is some overlap amoung years. The definitive way to date a pre-CBS Fender guitar is to look at the dates on the body, neck, and the tone/volume pots. The serial number should only ever be used as a guide.
Fender Esquires, Broadcasters and Telecasters from 1950 to 1954 (number on bridgeplate) use a system of serialisation which is unique to these three models, until around early summer of 1954 when Fender switched to a universal neck plate serial number system for all models.
Fender Telecaster with numbers on the bridge plate
0001 to 0999 = 1950 to 1952
1000 to 5300 = 1952 to 1954
Fender Precision Basses from 1951 to 1955 (number on bridgeplate) also used a unique system of serialisation until about 1955, even though Fender went to a universal neckplate serial number system on all instruments in 1954. However some old style Precision Bass serialised bridges were still left over and used until 1955.
Fender Precision Basses with numbers on the bridge plate
100 to 400 = 1951 to 1952
0001 to 0999 = 1952 to 1954
1000 to 2000 = 1953 to 1955
All Fender models from the summer of 1954 to mid 1976
All Fender models from the summer of 1954 to mid 1976 have the serial number on the neckplate. During 1957 and 1958 some serial numbers started with a minus sign ("-"), or had a "0" prefix before the number. Also in 1959 and 1960 some serial numbers were at the bottom of the neck plate instead of the top as is the norm. Double stamped serial number plates were also produced (number on both front and back of the neck plate) in late 1957 to early 1959. It is not unusual to find that there is some overlap in serial numbers between the years.
Fender Guitars with 4 to 6 digit neck plate serial numbers
There should be no other letters or markings on the neck plate, except for the rare "-" or "0" prefix, which is noted above.
0001 to 6000 = 1954
6001 to 9000 = 1955
9001 to 16000 = 1956
16001 to 25000 = 1957 (some numbers with a "0" or "-" prefix)
25001 to 30000 = 1958 (some numbers with a "0" or "-" prefix)
30001 to 40000 = 1959
40001 to 58000 = 1960
55000 to 72000 = 1961
72001 to 93000 = 1962
93001 to 99999 = 1963
Fender L-Series guitars from 1963 to late 1965
Serial number on the neckplate preceded with an "L". Even though CBS bought Fender in January 1965, these guitars are considered Pre-CBS. Keep in mind it is not unusual to find an "L" serial number on a late 1962 model.
L00001 to L20000 = 1963
L20001 to L55000 = 1964
L55001 to L99999 = 1965
F-Series Fender guitars from late 1965 to mid-1976
Known as the CBS era, these guitars feature a large script "F" on neckplate just below the serial number.
100000 to 110000 = Late 1965
110001 to 200000 = 1966
180000 to 210000 = 1967
210001 to 250000 = 1968
250001 to 280000 = 1969
280001 to 300000 = 1970
300001 to 330000 = 1971
330001 to 370000 = 1972
370001 to 520000 = 1973
500000 to 580000 = 1974
580001 to 690000 = 1975
690001 to 750000 = 1976
Fender Guitars with the serial number on the peghead decal
American made Fenders, starting in mid-1976 have the serial number on the peghead. Note the following numbers could be off by as much as two years. In rough terms, an "S" prefix equals the 1970's, "E" prefix equals the 1980's, and "N" prefix equals the 1990's.
7600000 ("76" in bold) = 1976-1977
800000s = 1979-1981
1000000 to 8000000 = 1976-1981 (7 digits)
S1 to S5 + 5 Digits = 1979-1982
S6 + 5 digits = 1976
S7 + 5 digits = 1977-1978
S8 + 5 digits = 1977-1978
S9 + 5 digits = 1978-1981
E0 + 5 digits = 1979-1981
E1 + 5 digits = 1980-1981
E1 + 5 digits = 1982
E2 + 5 digits = 1982-1983
E3 + 5 digits = 1982-1984
E4 + 5 digits = 1984-1985, 1987-1988
E8 + 5 digits = 1988-1989
E9 + 5 digits = 1988-1990
In March 1985, CBS sold Fender to a group of private investors, however the serial numbers do not reflect this change. Fender continued to make instruments using existing serial number schemes. The new owners of Fender did not acquire any physical assets of the old company, just the name "Fender". Hence during 1985 to 1987, production of Fender guitars was only done in Japan, while USA Fender created a new factory in California.
N9 + 5 digits = 1990
N0 + 5 digits = 1990-1991
N1 + 5 or 6 digits = 1991-1992
N2 + 5 or 6 digits = 1992-1993
N3 + 5 or 6 digits = 1993-1994
N4 + 5 or 6 digits = 1994-1995
N5 + 5 or 6 digits = 1995-1996
N6 + 5 or 6 digits = 1996-1997
N7 + 5 or 6 digits = 1997-1998
N8 + 5 or 6 digits = 1998-1999
N9 + 5 or 6 digits = 1999-2000
DZ0 or Z0 + 5/6 digits = 2000
DZ1 or Z1 + 5/6 digits = 2001
DZ2 or Z2 + 5/6 digits = 2002
DZ3 or Z3 + 5/6 digits = 2003
DZ4 or Z4 + 5/6 digits = 2004
DZ5 or Z5 + 5/6 digits = 2005
Other Fender Serial Number Schemes
Fender has in the last 25 years introduced many different serial numbers schemes, depending on the country the Fender was made. Not all schemes are covered here, but below are some examples of letter prefixes used in recent serial number schemes.
V + 4 to 6 digits (U.S. Vintage Series) = 1982-1988 (neck date=exact year)
V + 5 to 6 digits (U.S. Vintage Series) = 1989-present (model dependant)
AMXN + 6 DIGITS = California Series electric guitars and basses, '97 and '98
DN + 6 DIGITS = American Deluxe series instruments, '98 and '99
NC(XXXXXX) = Squier Strat Bullets (dating unclear)
FN(XXXXXX) = US made guitars and basses destined for the export market
I(XXXXXXX) = Limited number of these "I" series guitars were made in '89/'90. They were made for the export market and have
Made in USA stamped on neck heel.
LE(XXXXXX) = Blonde Jazzmasters and Jaguars with Gold hardware made in 1994. Sold as a promotional 3 piece set with a Blonde Deluxe Reverb Amp
CN(XXXXXX) = Korean made Fender/Squier guitars (dating unclear)
VN(XXXXXX) = Korean made Fender/Squier guitars (dating unclear)
CA(XXXXX) = Gold Strat 1981, 82 and 83
CB(XXXXX) = Precision Bass Special from 1981, CB(XXXXX) Gold Jazz Bass from 1982
CC(XXXXX) = Walnut Strat 1981-82-83
CE(XXXXX) = Precision Bass Special from 1981, Black and Gold Tele from 1981-82
CD(XXXXX) = Precision Bass Special (Walnut) from 1982
CO(XXXXX) = Precision Bass Special (Walnut) from 1982
GO(XXXXX) = Precision Bass Special (Walnut) from 1982, Gold Strat 1982-83
D(XXXXXX) = Jazz Bass from 1982
SE8(XXXXX) = Signature Edition Strats (dating unclear, check neck date)
SE9(XXXXX) = Signature Edition Strats (dating unclear, check neck date)
SN0(XXXXX) = Signature Edition Strats 1990
SN1(XXXXX) = Signature Edition Strats 1990
SN2(XXXXX) = Signature Edition Strats 1992
SN3(XXXXX) = Signature Edition Strats 1993
3 digits of 500 = 35th Anniversary Strat from 1989-1990
G(XXXXXX) = "STRAT" from about 1980, (Gold hardware, 2 pos. rotary tone switch)
4 digits stamped on bridge plate = 1952 reissue Telecaster 1982-1988 (Check neck date for exact year)
5 digits stamped on bridge plate = 1952 reissue Telecaster 1988-present (Check neck date for exact year)
Recommended Reading
All Fender guitars prior to 1977 have a serial number on either the bridgeplate or the neckplate (Very early Stratocasters however had a four digit serial number on the tremelo back cover plate). Serial numbers are basically chronological, but there is some overlap amoung years. The definitive way to date a pre-CBS Fender guitar is to look at the dates on the body, neck, and the tone/volume pots. The serial number should only ever be used as a guide.
Fender Esquires, Broadcasters and Telecasters from 1950 to 1954 (number on bridgeplate) use a system of serialisation which is unique to these three models, until around early summer of 1954 when Fender switched to a universal neck plate serial number system for all models.
Fender Telecaster with numbers on the bridge plate
0001 to 0999 = 1950 to 1952
1000 to 5300 = 1952 to 1954
Fender Precision Basses from 1951 to 1955 (number on bridgeplate) also used a unique system of serialisation until about 1955, even though Fender went to a universal neckplate serial number system on all instruments in 1954. However some old style Precision Bass serialised bridges were still left over and used until 1955.
Fender Precision Basses with numbers on the bridge plate
100 to 400 = 1951 to 1952
0001 to 0999 = 1952 to 1954
1000 to 2000 = 1953 to 1955
All Fender models from the summer of 1954 to mid 1976
All Fender models from the summer of 1954 to mid 1976 have the serial number on the neckplate. During 1957 and 1958 some serial numbers started with a minus sign ("-"), or had a "0" prefix before the number. Also in 1959 and 1960 some serial numbers were at the bottom of the neck plate instead of the top as is the norm. Double stamped serial number plates were also produced (number on both front and back of the neck plate) in late 1957 to early 1959. It is not unusual to find that there is some overlap in serial numbers between the years.
Fender Guitars with 4 to 6 digit neck plate serial numbers
There should be no other letters or markings on the neck plate, except for the rare "-" or "0" prefix, which is noted above.
0001 to 6000 = 1954
6001 to 9000 = 1955
9001 to 16000 = 1956
16001 to 25000 = 1957 (some numbers with a "0" or "-" prefix)
25001 to 30000 = 1958 (some numbers with a "0" or "-" prefix)
30001 to 40000 = 1959
40001 to 58000 = 1960
55000 to 72000 = 1961
72001 to 93000 = 1962
93001 to 99999 = 1963
Fender L-Series guitars from 1963 to late 1965
Serial number on the neckplate preceded with an "L". Even though CBS bought Fender in January 1965, these guitars are considered Pre-CBS. Keep in mind it is not unusual to find an "L" serial number on a late 1962 model.
L00001 to L20000 = 1963
L20001 to L55000 = 1964
L55001 to L99999 = 1965
F-Series Fender guitars from late 1965 to mid-1976
Known as the CBS era, these guitars feature a large script "F" on neckplate just below the serial number.
100000 to 110000 = Late 1965
110001 to 200000 = 1966
180000 to 210000 = 1967
210001 to 250000 = 1968
250001 to 280000 = 1969
280001 to 300000 = 1970
300001 to 330000 = 1971
330001 to 370000 = 1972
370001 to 520000 = 1973
500000 to 580000 = 1974
580001 to 690000 = 1975
690001 to 750000 = 1976
Fender Guitars with the serial number on the peghead decal
American made Fenders, starting in mid-1976 have the serial number on the peghead. Note the following numbers could be off by as much as two years. In rough terms, an "S" prefix equals the 1970's, "E" prefix equals the 1980's, and "N" prefix equals the 1990's.
7600000 ("76" in bold) = 1976-1977
800000s = 1979-1981
1000000 to 8000000 = 1976-1981 (7 digits)
S1 to S5 + 5 Digits = 1979-1982
S6 + 5 digits = 1976
S7 + 5 digits = 1977-1978
S8 + 5 digits = 1977-1978
S9 + 5 digits = 1978-1981
E0 + 5 digits = 1979-1981
E1 + 5 digits = 1980-1981
E1 + 5 digits = 1982
E2 + 5 digits = 1982-1983
E3 + 5 digits = 1982-1984
E4 + 5 digits = 1984-1985, 1987-1988
E8 + 5 digits = 1988-1989
E9 + 5 digits = 1988-1990
In March 1985, CBS sold Fender to a group of private investors, however the serial numbers do not reflect this change. Fender continued to make instruments using existing serial number schemes. The new owners of Fender did not acquire any physical assets of the old company, just the name "Fender". Hence during 1985 to 1987, production of Fender guitars was only done in Japan, while USA Fender created a new factory in California.
N9 + 5 digits = 1990
N0 + 5 digits = 1990-1991
N1 + 5 or 6 digits = 1991-1992
N2 + 5 or 6 digits = 1992-1993
N3 + 5 or 6 digits = 1993-1994
N4 + 5 or 6 digits = 1994-1995
N5 + 5 or 6 digits = 1995-1996
N6 + 5 or 6 digits = 1996-1997
N7 + 5 or 6 digits = 1997-1998
N8 + 5 or 6 digits = 1998-1999
N9 + 5 or 6 digits = 1999-2000
DZ0 or Z0 + 5/6 digits = 2000
DZ1 or Z1 + 5/6 digits = 2001
DZ2 or Z2 + 5/6 digits = 2002
DZ3 or Z3 + 5/6 digits = 2003
DZ4 or Z4 + 5/6 digits = 2004
DZ5 or Z5 + 5/6 digits = 2005
Other Fender Serial Number Schemes
Fender has in the last 25 years introduced many different serial numbers schemes, depending on the country the Fender was made. Not all schemes are covered here, but below are some examples of letter prefixes used in recent serial number schemes.
V + 4 to 6 digits (U.S. Vintage Series) = 1982-1988 (neck date=exact year)
V + 5 to 6 digits (U.S. Vintage Series) = 1989-present (model dependant)
AMXN + 6 DIGITS = California Series electric guitars and basses, '97 and '98
DN + 6 DIGITS = American Deluxe series instruments, '98 and '99
NC(XXXXXX) = Squier Strat Bullets (dating unclear)
FN(XXXXXX) = US made guitars and basses destined for the export market
I(XXXXXXX) = Limited number of these "I" series guitars were made in '89/'90. They were made for the export market and have
Made in USA stamped on neck heel.
LE(XXXXXX) = Blonde Jazzmasters and Jaguars with Gold hardware made in 1994. Sold as a promotional 3 piece set with a Blonde Deluxe Reverb Amp
CN(XXXXXX) = Korean made Fender/Squier guitars (dating unclear)
VN(XXXXXX) = Korean made Fender/Squier guitars (dating unclear)
CA(XXXXX) = Gold Strat 1981, 82 and 83
CB(XXXXX) = Precision Bass Special from 1981, CB(XXXXX) Gold Jazz Bass from 1982
CC(XXXXX) = Walnut Strat 1981-82-83
CE(XXXXX) = Precision Bass Special from 1981, Black and Gold Tele from 1981-82
CD(XXXXX) = Precision Bass Special (Walnut) from 1982
CO(XXXXX) = Precision Bass Special (Walnut) from 1982
GO(XXXXX) = Precision Bass Special (Walnut) from 1982, Gold Strat 1982-83
D(XXXXXX) = Jazz Bass from 1982
SE8(XXXXX) = Signature Edition Strats (dating unclear, check neck date)
SE9(XXXXX) = Signature Edition Strats (dating unclear, check neck date)
SN0(XXXXX) = Signature Edition Strats 1990
SN1(XXXXX) = Signature Edition Strats 1990
SN2(XXXXX) = Signature Edition Strats 1992
SN3(XXXXX) = Signature Edition Strats 1993
3 digits of 500 = 35th Anniversary Strat from 1989-1990
G(XXXXXX) = "STRAT" from about 1980, (Gold hardware, 2 pos. rotary tone switch)
4 digits stamped on bridge plate = 1952 reissue Telecaster 1982-1988 (Check neck date for exact year)
5 digits stamped on bridge plate = 1952 reissue Telecaster 1988-present (Check neck date for exact year)
Recommended Reading