Best Guitar Gamble

[spanishyturk]

To play the best guitars in the World is an ambition most of us have.
Well I have a cunning plan.I fancy the Jose Ramirez 125th Anniversary model. They are going for $28k in the UK.
Now what are the chances of me selling that guitar for the same price after a year.Keeping in mind that if I purchase from GSI they will buy it back at 80% if I cant find a buyer.
The worst is I will loose about $6k a year and the best is to sell it for more than I paid, which can happen with some guitars.
I reckon If I did this over a ten year period I would break even.
What do you think.

[brolio]

I think classical guitars are like venture capital, that is their value over time is like a "j". That being the value sinks a little right after you buy it, and then if well cared for and disirable by the market the value will go up. I have no idea how the 125 guitar will do over time. Ramirez is making great guitars but the company was once the magnet for every great Madrid luthier, so regardless of how good the guitars are now, it is some what stigmatic. I think you will need to hold the guitar for possibly 10 years to make a profit. You will also need to play it, and change the strings, and not scratch it. Ramirez does make a tight guitar and take a while to open up, but once they do, they are great.

One more thing, it would seem tuff for an individual to sell a high priced classical guitar. Do you want to ship it out so they can try it?
Do you want people coming to your house to see it? Is your house wired for security? If you want the guitar for your self, go for it.

[MWA]

GSI says they will allow 80% trade in value if you are buying a guitar of equal value. So that puts you in a negative cash flow. As far as selling a guitar for a profit after 1 year, its unlikely unless the maker is more or less unknown and is then discovered by someone like John Williams or is a well known maker that dies suddenly. For most other scenarios keep in mind that people buy used guitars from individuals, rather than a dealer, to pay less than retail.