You have had your fair share of musical instruments in the past if you’re serious about your craft. Some you buy new, others you buy second-hand. However, there are those musical instruments that call to your heart and soul.

There are times when you had to skimp on other things so you can buy that instrument that would cost you several thousands of dollars. Some people frown upon musicians when they invest too much in their gear because others do not understand our deep connection with these instruments. We don’t see them as things; we look at them as extensions of our bodies and a way of expressing ourselves. And in a pinch, they can become a quick source of cash.

If you are not a musician but want to invest in musical instruments, we say that you might just be on the right path. There are a lot of investors who see musical instruments as an alternative investment. Why? Buying a 5,000-dollar musical instrument now can return a huge profit in the future if you play your cards right.

Although valuable antique instruments are illiquid and a relatively risky market, instrument owners can get high returns if it is done right. Take, for example, the Stradivarius violin which inspired the film “The Red Violin.” It was bought by Elizabeth Pitcairn for $1.7 million at Christie’s in 1990, that violin is now worth $10 million. Post-crisis, more and more people are looking at alternative investments to diversify their assets.

3 Factors to Consider When Investing in Musical Instruments

1.    You can’t be in a rush.

Getting a return while investing in musical instruments takes time. You don’t buy an instrument today and expect a hefty profit in a year.

That Stradivarius violin we mentioned has been with Pitcairn for over two decades. That’s why it is a great alternative for investors.

They invest in instruments they know will appreciate and add them to their assets. Investing in musical instruments is not for those who live from pay check to pay check. If you have the money to spare and you want to lock up your money for an indefinite time, then buy that musical instrument as an investment.

2.    It can be risky.

Collectibles are safe investments, but it can be risky. However, different investments have different risks. If you put your money in stocks, there’s no guarantee that it will pay off in time. Everything has risks. I feel it’s better to spend your money on investment you will cherish personally.

Musical instruments can be a stable investment. If it gets out of shape, you can have them restored to excellent or mint condition. There are also many collectors who frequent auction houses looking for great items. The market is so big that you don’t have to worry about selling them.

3.    Instrument Value

Last and definitely the one to always consider, the value of the device. Let’s be honest, collecting musical instruments, those of the finest quality is a niche market. Investing in a tool doesn’t mean that you should just buy anything anywhere and expect it to sell for a million dollars. There are also things that you have to take into account when buying a musical instrument for investment.

How to Know If an Instrument is Worth Investing on

Just like any collectible, there are a few factors why something becomes of great value not just to the seller but also to the buyer. Here are a few things to look for when you want to invest in a musical instrument.

·         Check the quality.

Before buying a musical instrument for investment, the number one thing that you need to address is quality.

There are a lot of online sites where you can research the quality of a musical instrument. Be very careful. There are a lot of musical instruments advertised as made by famous makers but are actually fake. They might be fun to look at, but if you’re thinking of investment, be diligent.

Buying stuff online can sometimes save you some time and a few dollars; however, if you’re serious, opt to buy from a store. There you can inspect the condition and documentation. If it was poorly made, then trust us, its value will not appreciate. You are just throwing money down the drain.

·         Know its history.

The most sought after musical instruments have a pedigree - a great story to tell. Most collectors value the background of a musical instrument. Take for example an Elvis Presley guitar or one played by Jimi Hendrix, they don’t sell cheap. Again, if you chanced upon these things, make sure that it comes with proper documentation.

It’s hard to sell based on hearsay, especially if you are looking for the best deal that you can find. Musical instruments with great stories have a huge market. If you can’t find a good price for collectors and fans, an auction is a good place to sell them.

·         It should be unique in the market.

Have you noticed how people put in so much effort in getting a limited item? Some people go to great lengths to purchase something first before anybody else. Sometimes, the best driver for collectors is how unique the musical instrument is. Just like any other collectible, you don’t want to invest on something that is mass produced because it doesn’t add much to its value. Sometimes find an instrument that just resonates with you.

Sometimes you find an instrument with character.

One-of-a-kind items which sell for millions of dollars are not mint condition or necessarily made from the top of the line materials. Often, collectors give more value to how many people in the world owns one. This is why vintage guitars and violins are so expensive.

Have you heard of limited edition Martin, Gibson, and Fenders going around the market for a few hundred? People invest in these brands because they think that they will be great investments. Limited run instruments, signed instruments, and instruments with history are what you are looking for.

A 5,000-dollar musical instrument today can produce a 300% profit if you know how to play the marketplace. Although it 's hard to put value to some instruments, it doesn’t mean that they will depreciate. The great thing about musical instruments is they never go out of style. They might change looks and value, but they still serve their purpose over time.