Are new cars a good investment? The moment you drive it off the lot most instantly loose 10-20%.
Some cars, though capture the public's imagination. Several years ago, Chevy had a little fun by putting a Corvette engine into a little Chevy pickup truck. They called it the Syclone. They only made something like 500 of em. I seem to recall that one of the magazines, perhaps Car and Driver, got one as a year-long test car. For a year, every time they reviewed some super sports car, they did a side bar of "whatever vs. Syclone." I remember one that said, "two seconds off the line, the Ferrari was seeing nothing but tailgate." I had a friend who ordered one and drove it off the lot for sicker price. The moment he drove it off the lot, he could have sold it for a tidy 50% profit. The Halo is the Syclone of knives. There's just something about that knife that captures peoples imagination (and attention). Can I tell you what models will fall into that special category? No. Who'd have selected the Halo? It's really not a particularly attractive knife (hold your flames, please). It's just sort of dull grey with a bead-blasted blade. But, there's just something about it. Spurred by the Syclone, GM put that same engine into a GMC Jimmy and called it the Typhoon. The magic wasn't there.
Now, if you have, say, a 1956 Ford Thunderbird, in factory condition, less than a thousand original miles, etc., the thing is worth a fortune.
Even a car that's not in good condition may still be worth a lot if it's a rare model. The cover of this months Northwest Knives and Collectibles is graced by a knife that, even allowing for this month's printing problems, just doesn't look that great. The text reads, "Joseph Rodgers and Sons, Cutlers to Her Majesty, V. Crown R, c. 1860-70s, 17 1/4" Bowie Knife, 11 3/4" Saber ground spear point blade with quite a bit of original polish remaining, full and unsharpened." From the picture (and, again, they're not up to usual standards the month. Apparently some sort of printing problems.) I'd say that Mr. Claussen is being a bit generous in saying "quite a bit of original polish." He goes on to say, "Slab Stag handles with four pins." The picture looks like typical nice stag. So, how much? Answer: $9500!
Meanwhile, back on page six in the same catalog, languishes another fine Bowie, item #100, "Case XX, 1 Dot (Lightening bot SS) USA, 1836 c. 1989 14 1/4" Bowie Knive" I wont' bore you with the details except to say that it's rated as being in Mint condition, yours for $55.
Why the difference? A lot of factors. The first is in worst condition, but it's also over a hundered years old and a rare specimen. The second, while in mint condition, is just one of who knows how many tens of thousands of these things Case turned out ten years ago.
Notice that the first knife's rise to fame took a hundred years. The knives you buy today might make your great grandson rich. Very few knives to the sort of shooting star thing that the halo has lately.
The right knife can be an excellent investment. My Halos have certainly increased in value more than the mutual fund shares purchased at the same time. But, I'll bet my mutual fund collection outperforms my knife collection overall any day.
Buy knives because you're interrested in them, because you like them. If you happen to stumble into a shooting star, then lucky you. But don't count on it. If you're looking for an investment, try Invesco or Fidelity.
Chuck
