A Musical Investment

Collecting rare guitars isn't just a hobby for rock stars: Fretted musical instruments have proven themselves to be valuable investments to dive into. While stocks and mutual funds may be anything but easy money, anyone with cash to invest can opt into a commodity like vintage guitars.

A vintage guitar is a work of art in itself, but its use goes far beyond that for professional musicians and even collectors -- it can very well be a source of income, whether played or encased and displayed.

"It is clear that prime vintage instruments have appreciated tremendously during the past five years and are likely to do well in the future," says George Gruhn, founder of Gruhn Guitars in Nashville, Tenn. "Whether one is a professional musician or not, a fretted instrument portfolio, properly invested over the past five years, would easily have done better than most any mutual fund."

Gruhn can be considered an authority on the subject: He moved to Nashville in 1969 and has since established one of the largest dealers of vintage and used instruments in the world. He has been a featured columnist for publications including Guitar Player and Vintage Guitar, was the former vice president of research and development for Guild Guitars and his designs are featured on a line of Tacoma guitars.

"Unlike the stock market, in which there have been great peaks and valleys, it has been my observation that the fretted-instrument market has had periods in which prices go up, and times in which prices plateau, but [they] do not drastically fall," adds Gruhn.

But the real reason Gruhn has chosen to invest in vintage guitars? "I personally do not put my money in stocks, bonds or mutual funds, but choose to invest in my own business and in the instruments I understand best and enjoy the most."

A Motley Crew

Of course, there are other reasons to collect vintage guitars besides trying to make a return on investment. Novelist Jonathan Kellerman explains that the joy he gets "out of owning these pieces of utilitarian art comes primarily from playing them, but also from appreciating the craftsmanship that went into building them."

	1953 Gibson Les Paul Gold Top

"I've played guitar since the age of nine and during my early years, couldn't afford good instruments," says Kellerman. "When I could, I began seeking out those with the best tone. For me, it's always been about sound."

Since guitars are so individually voiced, "seeking tonal variety led me to collect, but I never set out formally to do so," Kellerman notes. "A few years later, I realized I had a collection."

The rare quality of some vintage instruments is what makes some collectors rabid, while how the instrument plays and sounds may drive the purchase for professional musicians. Sometimes, the quest to acquire a specific guitar can yield a story that can be told for years to come.

"Thirty years ago, I'd use my lunch hour to chase down instruments," recalls Kellerman. "One excursion led me to a rather scruffy exurb where I purchased a vintage Gibson Super 400 from an Assyrian lounge singer on his way to Vegas. The sale of the guitar was to finance his trip. His intention was to be the Assyrian Elvis."