HomeInvestment vs Expenditure
When you spend a lot of money on a bass boat, a motorcycle or a flat screen television, if you later decide to sell it, you won't be able to get anywhere near the amount you paid for it.
Buying a vintage Martin guitar is very different. You could buy and own and enjoy a great old Martin for five or ten or thirty years and always be able to get more (and oftentimes much more) than what you paid for it.
From 1991 to 2007, the average increase in value for Martin vintage guitars was about 10% per year. That means that if you paid $2000 for a guitar in 1991, by 2007 it would be worth over $10,000!
So it's almost like getting paid to own and enjoy an awesome guitar. And while IRA's and other investments usually increase in value very slowly (and in some years you actually lose money), vintage Martin guitars are an excellent investment.
That's why I don't think of spending a lot of money on an old Martin as just a purchase. It is an investment that's more reliable than the stock market and, in some cases, than owning a home.
