Owning a musical instrument not only brings immense personal satisfaction, but can also fetch rich returns.

A 317-year-old Stradivarius violin that was stolen in the UK in 2010 and offered for sale by the thieves for a measly £100 was recently auctioned for £1.2 million.

In 2011, another Stradivarius was sold at a charity auction for an astonishing $16 million, making it the most expensive musical instrument ever to have gone under the hammer.

But it’s not just violins. When Eric Clapton auctioned “Blackie”, his guitar, in 2004, to raise funds for a drug and alcohol rehabilitation centre, it fetched $959,000, then a record sum.

The guitar was built out of parts worth a few hundred dollars in the 1970s. In 2006, a similar guitar signed by Clapton and other musicians to raise money for victims of the 2004 Asian tsunami went under the hammer for $2.4 million.

Even a guitar smashed and set on fire on stage by Jimi Hendrix raked in a whopping $497,500 at a London auction in 2008, while yet another that was meted out the same treatment in New York is estimated to be worth $1.2 million.

Appreciating value

If one considers the price at which these instruments were originally purchased, the return on investment is a thousand-fold. So what makes an instrument valuable?

Experts say that the value of a musical instrument takes into account its maker, quality, condition and its history (who played it). In addition, potential buyers may also value an instrument that surfaced after 200 years, which rouses an air of discovery.

The timing of the sale is another important factor that could translate into better returns, since certain instruments may be in fashion at that particular point in time.

Hoping to land a million-dollar instrument for a fraction of the cost might seem far-fetched, but all it really calls for is calm acumen, as with all investment decisions.

One thing to remember is that appreciation in value for a musical instrument may take years or it could even happen overnight due to the occurrence of certain events such as an artist’s demise or a surge in his popularity.

When looking at a musical instrument as an investment, it is also important to note that not all old pieces of wood are created equal: some will store their value, others won’t.

Above all, this passion investment is sentiment-driven and motivated by a buyer’s passion for a unique piece of craftsmanship that could translate into significant returns later on.

Hobbyists’ market

The market for musical instruments is flooded with hobbyists looking to snap up rare instruments for a song and then sell them for a handsome profit.

Just log on to an online marketplace like eBay.com or reverb.com to see a gamut of instruments bought and sold every day.

A Chennai-based musician recounts how he purchased a bass guitar built in the custom shop of Japanese luthier ESP for less than a third of its value.

“I was looking for a nice instrument, when I stumbled on a listing on eBay. I made a payment of about half a lakh of rupees toward the purchase (including shipping and duty charges), with my credit card and it was delivered to my house. It was only later that I realised it was worth much more.” A custom-built guitar can cost thousands of dollars.

According to ESP’s website, the model cost ¥250,000 in 1992, which is equivalent to approximately ₹1.5 lakh at today’s exchange rate.

The prospect of earning a handsome return on this investment is high. “I’ve already had offers from people abroad for double the amount I paid. It’s a unique, custom-built item. I’ll wait a bit longer.”

This culture of collecting musical instruments is on the rise in India, if one considers the 14,334 members on Facebook group ‘AM Used Musical Instrument Gear’, where amateur and professional musicians buy and sell gear.

The average purchase price of instruments is usually lower than the cost of a new showroom piece.

But once in a while, collectibles such as analog stompboxes are sold for more than their original price tags because of their perceived rarity or reputation.

Thanks to the fall in the rupee (over the years), instruments bought a few years ago are more valuable in rupee terms now.

It is important to realise that while artist ownership of an instrument can enhance its value significantly, production models made by companies and sold to customers in regular music stores can also appreciate.

For example, instruments manufactured by US-based Fender in certain years are highly prized, as are guitars built by Gibson.

Safe-keeping

Unlike the stock market, which experiences booms and busts, the musical instruments market usually sees periods of growth, followed by periods of plateau.

But if you really want to make blockbuster returns on an instrument, you have to think like a collector once you get your hands on one.

Like wine or art, fine instruments too need to be stored properly, in a carefully monitored semi-humid climate, to maintain their worth.

This could entail additional expenditure to build a repository for your collection of instruments.

You may also need a proper security system for your priced investments.

Last but not least, remember that playing your instrument isn’t forbidden, but handle it with kid gloves, since the closer it is to mint condition, the more interest it’s likely to attract.

comment COMMENT NOW