Electric Guitar Trends

All of the advice about collecting is the same, do it for the love of it.  If you think your guitar collection is going to be your retirement nest egg, that is not likely. Why?

1. Collectors don’t diverisfy.  The 2008 Vintage Guitar Guide explains that in 1991 the folks at VCG started tracking “The 42 Guitar Index”.  It is made up of 42 pre-1970 guitars.  They are all Fender, Gibson, and Martin guitars.  Collectors often collect one brand, or even just one model of electric guitar.

2. It’s too expensive.  The guitars most likely to appreciate in the future are pre-1970 guitars.  That’s what serious collectors are looking for.  And the prices of the collectable vintage guitars are already beyond the reach of most people.

3.  The future is uncertain.  The Baby Boomers are heading into retirement now, and they are a significant part of the vintage guitar market.  A guy who is 65 might be acquiring guitars, but a guy who is 85 is not into buying guitars anymore.  I predict that vintage guitar prices will stagnate in the next few years, except for the most sought after models.

So, go ahead and start your guitar collection, but do it for the love of it.