Why Do Instruments Appreciate in Value?

Musical instruments can increase in value for a number of different reasons. As with other commodities, supply and demand tends to dictate price. Scarcity drives the value of most collectible instruments. Stradivari and Guarneri didn't produce many instruments. Their limited number alone makes them valuable.

Such legendary instruments are also a status symbol. Possessing an "old master" work immediately places the owner in a unique social circle. These same instruments can have an intense international market, with collectors driving up prices in their frenzied pursuit of their prize. Even the mere perception the instrument's price will continue to rise in the future will greatly increase its value.

Instruments of famous musicians can also skyrocket. Having the instrument in their possession can allow the owner to feel closer to the famed personality, forging a connection to a personal idol or musical icon.

Even less famous instruments can still appreciate in value. To do so, they need to remain in excellent condition. Depending on the age of the instrument, it may be purchased strictly as an investment with no intention of ever using it. But being in proper operating condition and retaining the ability to be played is critical to the instrument's overall value.

People can invest in musical instruments the same way they purchase stocks and bonds. But unlike stocks, rare instruments can be insured to protect the investment. These instruments can still provide a potential windfall down the road, and the initial investment can often help support other musicians and the spread of musical culture.