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Investing in Vintage Stereo - Is This Stupid?

J

joe_tex

Active Member
I bought several top line stereo receivers around 6-7 years ago and some of the current prices (ebay, where else) have significantly increased from what I paid. I have a Pioneer SX-1250, Marantz 2385, Yamaha CR3020 and Toshiba SA-7150. The current Pioneer and Marantz receiver prices are almost 50% higher, on average, than what I paid. The Yamaha has increased about 15% and the Toshiba is about the same. It seems that the Marantz and Pioneer higher end components are increasing the most with Yamaha close behind. There are other good brands, but the increase is the most with Pioneer and Marantz. I am wondering if it would be a sane thing to do if I invested 10k-20k (or more) and buy a few Pioneer receivers (SX-1050, 1250), a few Marantz receivers (2325, 2330, 2385) and a few Yamaha receivers (CR1020, 2020). The 3020's are too rare. Even with restoration costs, I could conceivable make a nice return in 4-5 years. I know I could do okay in ETF fund investing, but I love being around beautiful classic stereo stuff. It is like an addiction, and I could do just as well as traditional investing. I am mainly into receivers, but good vintage speakers have also shown a huge increase in price during the last 6-7 years. I guess you could compare this to people who invest in collectable vintage cars.
 
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Personally, I think this whole vintage thing has peaked. Baby boomers are starting to thin out, and while the hipster quotient will keep things alive a bit longer, my gut tells me that those with disposable income and desire to obtain will drop soon like sh%$ty diapers.

But like chef free said, do it if you want to, and yes, I doubt you'd lose much money.
 
to buy for your pleasure and enjoyment is fine.
to buy this stuff for investment purposes is not the wisest thing to do with your money.
Mutual finds are much better. "vintage" audio prices are highly inflated IMO.
But its your money and you should do with it what pleases you most.
 
I'll agree with James on the peaking of the trend. It may go up a bit and waver here and there but I doubt it will keep climbing as it has been.
Best way to make money would be to sell what you have now and buy back some nice units in a few years, once the buble has popped.
 
Don't count on this for a retirement accountt. If you buy it because you want it, great, but don't count on making much money on it. Now, if you're proficient at repairing/restoring these, have access to the parts, a willingness to work hard and get your hands dirty, and acccess to customers who be willing to pay top dollar, well then, it might be a little different. Also, keep in mind that those who will pay top dollar expect prefection. Even then, you may not get the ROI you're hoping for.
 
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as I sell stuff i find i have to price things higher than I paid so that i can brake even.
but i also have not done so at times, more than i care to remember. its all a krap shoot.
nobody want to pay asking price, EVER. they even get mad when you wont lower your price.
 
I agree with all of you that thinks it's a bubble close to popping. I think there will be a secondary wave of interest once the market becomes flooded with all the gear that's been serviced/restored in the last few years, but as is true with all flooded markets, I believe prices will drop. Not to the floor, not prices of 10-15 years ago, but I wouldn't be surprised to see 60% or so of current prices become the norm.
 
There is a big difference between investing, and making money. Unlike stocks, where the price you see the stock selling at is the price you will net, stereo sales prices n the 'Bay may not be what you realize. Many times your results will differ by as much as 30% to 50%. Outside of a few brands, it is very difficult for gear to have financial liquidity at all times.

You can make money on the flip, and then reinvest it in another round of gear, but waiting for a ten year maturity on most stereo gear is a poor bet.

By buying low and selling higher, you can net a profit, but this is not called investing. This is called churning, where you count on rising bubbles to bounce profit. Sometimes it works, sometimes the bubble busts and you lose.

Some of the collectors here started(or were still) buying higher valued tube gear a decade ago, and we have seen our collections routinely double in value, if we bought in low. If I dumped everything at optimal price, I would be lucky to squeeze $20K from the collection proceeds. We realized double that gain merely from jumping heavily into Ford stock, immediately at its lowest common stock price during the recession, because we agreed with our stock broker that Ford was adequately capitalized, would not go under, and had some good products in the pipeline.

The bubbles niche markets are for people who aggressively pursue them, while stocks are a great long term, passive style of investing.
 
You might make some money. You might not. Just like with any kind of collectible, prices can rise and fall. Certain items can go out of favor. If you get a kick out of it, that's value right there. Otherwise, you might do just as well or better with a stock, or some silver or even Bitcoins.
 
The higher the price the harder it is to sell. I used to be able to swap gear in and out by buying and selling on the used market. but now my gear has got more expensive I'm finding it harder and harder to shift it. I think classic cars are a wiser investment for your money if you want to see a return. The problem is identifying what is going to be a classic in the future. For instance a last gen Toyota supra now commands significant money. A Mitsubishi 3000GT.. nowhere close to that. like everything. investing is a gamble.
 
Most people are fickled......

When someone of notablity decides something is cool, the followers all have to join in. The increased popularity of music will disappear once their disposable income is threatened by another financial economic recession. Then of course with new conditions in the country developing the FED has raised interest rates to slow inflation and inflation has a tendency to deplete disposable income. Even so, within a few years there will be someone of notable taste to belittle vinyl and decide that something is better due to the inconvenience of dealing with vinyl. Then the popularity will disappear and hobbyists will have a surplus of inexpensive equipment to choose from....
 
I never cared for the guy who invests in a Ferrari by buying one and then putting it on a lift. Twenty years later he could possibly sell it for a nice profit, but look at all those years he missed driving that beauty! Ferrari's are ment to be DRIVEN! The same goes for stereo gear. Enjoy the hell out of it, you could get hit by a truck tomorrow, so have fun now and don't worry about future value.

I usually just pass my old gear onto family members or friends.
 
If there was money in something like that every Tom, Dick and Harry would be doing it. Especially nowadays since anyone with a smartphone is now an expert on pricing even if they don't know a receiver from a pair speakers. You may get lucky with a few good finds here and there that you can flip for a few extra $ but don't expect it to be the norm.
 
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