Hi David:
Im trying to figure out exactly what is being said here. Certainly there are investment-grade makers and ones that will not guarantee a ROI. The "buy what you like" types are getting pounded here as being flippant and reckless in their purchases since they don't spend time doing research on each purchase they make to ensure they don't "lose" money. I am missing exactly how a maker can become a "good investment" without these reckless BWIL collectors discovering them?
I am not pounding the BWIL club members for being flippant and reckless. I am pointing out, that they pound their chests and proclaim the reason for their purchase is I BUY WHAT I LIKE!!!! Then these will be the first people to throw a tantrum when they go to sell or trade a knife. Because others don't appreciate the craftsmanship, the materials used, etc.
I and I alone are pointing out this "disorder" primarily because I have grown tired over the years of being yelled at, cursed at, told I don't know what I am doing, etc. By members of this club. By doing so, much like with pointing out that Randall's and Chris Reeve knives are not customs. That Mokume, Giraffe bone, jigged bone (except on replica pieces), brass and nickel silver (except where called for primarily for historic accuracy), are trends, fads, etc. These knives will not hold their value over time, because of this fact.
By pointing out these facts, I no longer have people try to sell and/or trade me Randall's, Chris Reeve Knives, other factory knives and any kind of knife with the aforementioned materials.
Is the demand for "investment-class" makers' knives mainly due to the fact that you can make money off buying and reselling those knives or the fact that the knives are what is in demand because people "like" them or have "liked" them regardless of their potential resale value?
Excellent question. The majority of Investment Grade knives are currently in the "arbitrage" category. That is to say
1) go to a show
2) enter a drawing
3) win the drawing
4) pay the maker
5) resell the knife for a profit almost immediately.
The other scenario:
1) buy a knife from a maker who is hot on a particular forum,
2) Sell the knife for a profit...depending on how long you can wait.
Then there are the long term investments. Let's face it even back in the mid-80's before I became a "Pope"
I knew that someone like Buster Warenski was just an incredible maker...his work would continue to be viewed as an "investment" quality knife for decades to come.
Generally this is why most people don't consider custom knives as investments. As it can take a decade before someone becomes an overnight sensation. Due directly to the Internet, this time frame has been shortened immeasurably.
I am missing exactly how a maker can become a "good investment" without these reckless BWIL collectors discovering them?
Another excellent question.
In theory the ability to spot a potential "investment grade" maker very early on would be a great asset.
The true diamonds in the rough are those who have the combination of:
1) Talent
2) Correct Pricing
3) Some degree of business acumen.
4) Ability to accept constructive criticism.....and implement those suggestions
Number 1 most people can see.
However, starting with number 2...some homework has to have been done or needs to be done.
So while supply and demand is a basic law of economics. A new take on this is called Demand and Supply. Utilizing different marketing types and styles can create a demand and then the supply is created to meet that demand.
Here is a case where a little homework can aid the BWIL buyer can improve their chances of a knife gaining in value.
You visit a makers table at a show the maker has 3 folders on the table all exactly the same except for:
Knife Number 1 has Mother of Pearl Scales.
Knife Number 2 has Gold Lip Pearl Scales
Knife Number 3 has Black Lip Pearl Scales.
All three are the same price.
Which knife do you buy and why?
