Basses better investment than banks!

[spacecowboy]

While perusing Bassdirect this lunchtime I took my almost daily look at their original 1960's Fender Precision bass they have for sale, it's your's for the tidy sum of £14,500.00.

 

Alot of money sure, but would it be a better investment than the same amount of money sat in a standard savings account? 

 

Currently you're lucky if you can currently get 1% on your savings regardless of the amount, sure you can get a better rate in a locked ISA or savings account, but that's by the by, this is assuming you may need access to your money at some point without losing accrued interest.

 

Portfolios too are full of risk short term but may prove financially prudent over a 10 year period, but again this little thought  is assuming no capital risk, or very very small risk.

 

So, in illustration your bank account could give you this; (obviously market / economy dependent)

 

 

Shocking returns. You could do a couple of months working evenings in a supermarket and make that 1.5k.

 

So Do we think in 10 years time the bass would only have increased in value by 1.6k? I doubt it, would we expect it to govern a 20k price tag? Possibly, skys the limit. 

 

It's food for thought, in this market which usually see's mass value depreciation, this could prove a shrewd buy... It would probably prove an almost guarantee ROI, with a realistic profit higher than interest accrued in a bank account... 

 

On that note, I'm off to sell my car and buy it

[ped]

Maybe we should sell shares in the bass

[spacecowboy]

1 minute ago, ped said:

Maybe we should sell shares in the bass

Hmmm, share buy, lock it away, equal dividend split on sale at agreed 10 years in the future sales date...

[ped]

Just now, spacecowboy said:

Hmmm, share buy, lock it away, equal dividend split on sale at agreed 10 years in the future sales date...

Probably better store it at my place

[spacecowboy]

Just now, ped said:

Probably better store it at my place

, no no no, I don't mind that responsibility, I'll take one for the team

[BlueMoon]

In order to realise a profit, don't you have to sell the bass? That's my problem 😃.

[BigRedX]

You are only able to take a daily look at this bass because it hasn't yet been sold, which suggests to me that it is over-priced.

[gjones]

I cashed in one of my pensions and after upgrading my car and going on holiday, had about £8,000 left.

 

I realised that if I left it in the bank, it would go down in value rather than up, as the miniscule interest rate my bank was giving me was way below inflation.

 

I then realised that all the basses I'd bought secondhand, never went for less than I paid for them when I eventually sold them on.

 

So I spent the money on preloved basses. I don't expect them to shoot up in value but at least they'll hold their value over the years.

 

I used to have one bass, now I've got 10.

 

I tell myself, it's not self indulgence......... it's an investment

[Velarian]

I bet people who bought Fullerton reissues in the early 80s are expecting them to appreciate strongly over the next couple of decades. I’d love to buy one if I could find the right one.

 

I wonder what today’s equivalent of a future Fullerton would be?

[Jus Lukin]

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Edited March 15, 2022 by Jus Lukin

[Rumple]

I must be doing something wrong as I always lose a bit of cash when moving on a bass or guitar, even if it's only the postage costs 😂

[gjones]

10 minutes ago, Jus Lukin said:

I know that this thread is somewhat tongue-in-cheek, but while banks are in profit I find it hard to understand how they can pay less than inflation to those who, technically, lend their money to them to invest. We're almost just as well to keep our money in safes at home- at least that would protect it from potential bankruptcy of the banks themselves. Given that tax money was spent to dig them out of the hole just a few short years ago, it seems all the more a thieving travesty. I don't understand the economics of that particular arrangement, but to the layman, it seems like a hell of a coup on their part. It appears that saving money is in fact a waste of money. At least if I put any spare cash into a bass I get to enjoy that object, rather than letting some exec somewhere enjoy it in the form of Havanas on the golf course and charlie off bared chests at a business retreat.

 

When borrowing interest rates are low, so are saving account interest rates.

 

Rates are low when governments want to induce people to borrow or spend their money (on bass guitars perhaps) rather than save it.

[spacecowboy]

19 minutes ago, Jus Lukin said:

I know that this thread is somewhat tongue-in-cheek, but while banks are in profit I find it hard to understand how they can pay less than inflation to those who, technically, lend their money to them to invest. We're almost just as well to keep our money in safes at home- at least that would protect it from potential bankruptcy of the banks themselves. Given that tax money was spent to dig them out of the hole just a few short years ago, it seems all the more a thieving travesty. I don't understand the economics of that particular arrangement, but to the layman, it seems like a hell of a coup on their part. It appears that saving money is in fact a waste of money. At least if I put any spare cash into a bass I get to enjoy that object, rather than letting some exec somewhere enjoy it in the form of Havanas on the golf course and charlie off bared chests at a business retreat.

 

Yeah somewhat tongue in cheek and somewhat genuine thought. 

 

I'm lucky enough to be in the position that I want to move some saving capital in to something other than the bank, however, no one is willing to give me value (subjective) on this capital. A savings account which shouldn't be called that anymore as it's a disgrace has an interest rate below 1%, so in simple queens english its f**king useless.

 

For around 2% I can have my money locked away for a set number of years, if I want to access to the money I lose the accrued interest and in some cases pay a fee. If this investment was 10k I'd get a grand if I'm lucky over 10 years. I might as well bust my donkey on a second job for a short period and it will result in more money over a shorter period. 

 

Stocks and shares, require management and are long term investment without a guarantee of fixed % returns or even a ROI. 

 

There really isn't a concrete way of making your money "work hard" for you today, unless of course you buy a 60 year old bass and keep it locked away for the foreseeable. 

[spacecowboy]

1 hour ago, BigRedX said:

You are only able to take a daily look at this bass because it hasn't yet been sold, which suggests to me that it is over-priced.

That's when it's time to haggle hard! 

[SumOne]

This is the sort of maths I do when trying to justify getting expensive things! 

 

High-end second hand vintage bass guitars are tempting as you get to own a nice bass while they appreciate. I've heard investment people say art is a good investment as it tends to go up in value and you have some nice decoration while it appreciates, if it doesn't appreciate quickly there's no big rush to get rid of it as it's still got benefit as a piece of art in the meantime. 

 

The risk is if demand falls and it de-values relative to inflation or if it gets damaged or nicked (and the cost of insurance). Bass guitars are sturdy though and I'd guess a vintage Fender is a fairly safe bet for something that'll stay in demand, it's not like there are more actual 60's Fenders being made........the biggest issue would be ever cashing-in and selling it, I imagine it'd be a tough thing to do after owning it for years.

 

Go for it!

[Woodwind]

2 hours ago, spacecowboy said:

Hmmm, share buy, lock it away, equal dividend split on sale at agreed 10 years in the future sales date...

This is exactly how Stradivarius violins are owned by investment companies. They buy them, then loan them to pro players and then sell them at a later date

Edited November 3, 2021 by Woodwind

[SumOne]

Is £14,500 the going rate for a decent early 60's  P Bass? It makes the £6,500 J Bass at Bass Gallery look cheap! Is there usually that much difference in cost between a P and a J a couple of years apart? 

[tegs07]

2 hours ago, gjones said:

I cashed in one of my pensions and after upgrading my car and going on holiday, had about £8,000 left.

 

I realised that if I left it in the bank, it would go down in value rather than up, as the miniscule interest rate my bank was giving me was way below inflation.

 

I then realised that all the basses I'd bought secondhand, never went for less than I paid for them when I eventually sold them on.

 

So I spent the money on preloved basses. I don't expect them to shoot up in value but at least they'll hold their value over the years.

 

I used to have one bass, now I've got 10.

 

I tell myself, it's not self indulgence......... it's an investment

Exactly this. Cash has been getting hammered for several years now in a so called low inflation environment. It’s looking very much like inflation is starting to kick in. Any asset that can outstrip inflation is better than surplus cash in the bank, if it’s something you enjoy even better. I did post about this a while back but was largely ridiculed.

[tubbybloke68]

Thanks for an interesting thread, I’d say anyone who is lucky enough to own a Wal bass that was brought anywhere from years ago up until fairly recently are sitting on probably one of the best investments bass wise.Guess people can never know how much something will rise in value until later.Hindsight is a wonderful thing!! I generally try to only buy a bass that I THINK will go up in value ,because as someone pointed out it’s a privilege and pleasure to play and enjoy being the temporary custodians first and foremost.Anything else is a bonus isn’t it? 
certainly wish I’d never have sold my first house and had taken the risk to try to invest more in property.🤣x

[tubbybloke68]

I hasten to add i went 20 years with only two basses and was quite happy and content….. then I discovered basschat 😂x 

[Lozz196]

25 minutes ago, tubbybloke68 said:

I hasten to add i went 20 years with only two basses and was quite happy and content….. then I discovered basschat 😂x 

It’s the ruination of us all

[uk_lefty]

31 minutes ago, tubbybloke68 said:

Thanks for an interesting thread, I’d say anyone who is lucky enough to own a Wal bass that was brought anywhere from years ago up until fairly recently are sitting on probably one of the best investments bass wise

Weird how things go around though. However many years back when I discovered GAS and eBay on mobile phones Westone Thunders couldn't be given away, now people are expecting more than £250 for the lefties. 80s Fenders have a terrible reputation but they're listed at high prices 

[Dan Dare]

4 hours ago, tegs07 said:

Exactly this. Cash has been getting hammered for several years now in a so called low inflation environment. It’s looking very much like inflation is starting to kick in. Any asset that can outstrip inflation is better than surplus cash in the bank, if it’s something you enjoy even better. I did post about this a while back but was largely ridiculed.

True. The only things I have made respectable financial gains on have been musical instruments and my homes (property is a no-brainer, of course, but most of us ordinary mortals can only afford to own one at a time). Anytime I have spare cash, I look for an instrument. Obviously, you have to know what you're buying and new (unless it's something particularly desirable, limited edition/only 50 made, etc) is not the way to go. You have to be prepared to hold onto them for a while, too, so it's not the thing to do if you may need to access your cash quickly, but that applies to many assets. Much more fun than looking at figures on a bank statement, too.

Edited November 3, 2021 by Dan Dare

[GuyR]

There is a great deal of sense being spoken in this thread.

 

IMO, You might generally make more by using the value of a fine vintage bass or three as the deposit for a buy to let property, which may pay for itself by the time you retire and give you an index linked income in perpetuity, as well as a legacy.

On the other hand, moderate sums of money which would otherwise lie unproductive in an account or investment product, effectively diminishing in value and making some other bugger richer, are proving a better return, while also improving the quality of your life tied up in an item of pre-CBS eye/ear candy.

 

Vintage basses are not currently subject to capital gains tax and I am not aware of any plans on the part of the chancellor in that direction. With houses, pensions and investment products, sadly you are a sitting duck for unwelcome HMRC fiscal pickpocketry, the tax laws changing with the wind.

Of course, no guarantee of future value on anything you do with your money, but if you have a rack full of fine vintage basses and/or guitars, the feel-good factor might insulate you against a sizeable slice of fiscal vicissitude. 

Edited November 3, 2021 by GuyR
Typo

[Velarian]

The problem with owning a fine vintage bass as an investment is that to realise the benefit of any gain in value you have to sell the thing. Who would be happy to do that? 🙁