The 42 Guitar Index
26/03/08 22:33
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.
Guitars as Investments
14/02/08 21:42
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'.