People make noise with them in the basement and some even grow rich from travelling from town to town playing them. But guitars can be a good investment as well.
What are now referred to as vintage guitars were simply old guitars back in the 1980s. The 42 Guitar Index – which tracks the cumulative value of 42 vintage instruments from Gibson, Fender and Martin - has tracked steadily upward since 1991. You could have bought all of those axes listed for about $150,000 that year.
The index was just shy of $1 million in 2008, and then the recession hit, pulling prices down 30 percent from their high in recent years. That sounds a lot like the equity markets in 2008-09.
The index, published every year by Vintage Guitar magazine, is back on the upswing and tracking back toward $800,000. Meanwhile, equity markets are hot and there’s lots of cheap money out there. Vintage dealers say there are profits to be made with quality instruments from decades past. And the best part, while you own them you can play them – preferably loud.