Custom Knife Investment

The return on your investment must be worth the time, effort, and what overhead if any is involved. I know several collector/investors that are into guns and a few other things. Being a collector allows for the very long term investment (years). None of these guys come even close to making a living at it, so its a hobby that may one day pay for itself if they ever manage to sell it all off. With few exceptions one must be a manufacturer or retailer to make money at selling to the end consumer. If it takes 4 hours of effort to make $20.00 then that less than minimum wage. I hope that the four hours is spent doing what you like and not just to make money.
 
Hi Jelico,

I don't think anyone has even suggested that you could make a living doing this.

Do you make a living investing in stocks, bonds, commodities, etc.? Maybe, but most people who invest in those do not.

If it takes 4 hours of effort to make $20.00 then that less than minimum wage.
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Imagine if you put 4 hours of effort....and lost $20.00!
 
JelicoCat said:
The return on your investment must be worth the time, effort, and what overhead if any is involved. I know several collector/investors that are into guns and a few other things. Being a collector allows for the very long term investment (years). None of these guys come even close to making a living at it, so its a hobby that may one day pay for itself if they ever manage to sell it all off. With few exceptions one must be a manufacturer or retailer to make money at selling to the end consumer. If it takes 4 hours of effort to make $20.00 then that less than minimum wage. I hope that the four hours is spent doing what you like and not just to make money.
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Jelico would you agree that having a hobby you love while making say 5-6 thousand dollars per year (or more) is more rewarding than having a hobby you love which cost you say $20,000 per year?

I don't suggest a collector purchase knives with the anticipation of selling them years down the road and retiring rich. I suggest rather to do his/her homework in selecting which knives to purchase from which makers within their taste and price range that will return a profit if sold within a 2-5 year range. I know collectors who are very successful at "cycling their collections", however there's usually select favorites that are kept long term.
 
Kevin Jones said:
Jelico would you agree that having a hobby you love while making say 5-6 thousand dollars per year (or more) is more rewarding than having a hobby you love which cost you say $20,000 per year?

I don't suggest a collector purchase knives with the anticipation of selling them years down the road and retiring rich. I suggest rather to do his/her homework in selecting which knives to purchase from which makers within their taste and price range that will return a profit if sold within a 2-5 year range. I know collectors who are very successful at "cycling their collections", however there's usually select favorites that are kept long term.
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homework is never fun, i just thought collecting would be more ummm....fun? :confused:
 
BTW, I've spent a LOT of money building the engine of my car. A truly substantive amount of funds which takes a spiraling loss as soon as you open the box of parts, never to ever return via funds.

Knives:
If you can make or break even--what a joy!
If you can make extra--what a privilege.
If you take a loss--let me tell you, it could be worse. ;)

It's all perspective.

Coop
 
Hi Severed,

You don't have to do any homework...just collect!

While collecting and investing in custom knives is not mutually exclusive.

Generally if you want a return on your investment...you have to do some homework.

This holds true for any investment.
 
SharpByCoop said:
BTW, I've spent a LOT of money building the engine of my car. A truly substantive amount of funds which takes a spiraling loss as soon as you open the box of parts, never to ever return via funds.

Knives:
If you can make or break even--what a joy!
If you can make extra--what a privilege.
If you take a loss--let me tell you, it could be worse. ;)

It's all perspective.

Coop
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I agree Coop.
It's all about perspective and what brings the collector pleasure and what we want to get out of it.

My issue is every time "investment" is mentioned in a custom knife discussion the "I only buy what I like" and the "you can't make money buying custom knives" crowds are sure to chime in with passion. My point is that custom knives can be a good investment, if one chooses to exert the effort to make it such. Being a naysayer only stifles the growth and advancement of custom knives.

Other collectible communities welcome investment with open arms, I don't find much of this in the custom knife community.
 
Les, Kevin and Coop - if one boils it all down to what the three of you have said in this thread, that's rather my outlook on this subject, too.

Bob
 
Sorry I didn't make my point well. I certainly did not intend to annoy or offend any one. All I am trying to say is that buying and selling a few knives at a time with the intent of making money most likely will result in minimal financial gain compared to the effort invested.

With that said, what kind of handle material do you all like for the Bravo-1.
 
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JelicoCat said:
How many of us can say that he/she is money ahead collecting knives.

With all that said, what kind of handles do you all like for the Bravo-1?
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1. I make money collecting knives, Kevin Jones makes money collecting knives, Dan Favano makes money collecting knives(and was doing so before he was a dealer).....not any of us could live off of this money though, it is a nice "extra".

2. When I had a Bravo 1, it had Blaze orange G-10 scales, but sold it, and made $20.00 profit.:D

(Full disclaimer....I used to own a retail knife shop in Seattle, WA in the early '90's....and know how to make a profit on selling knives)

Best Regards,

STeven Garsson
 
Hi Jelico,

The amount of money an individual can make buying and selling knives a few at a time most likely will not be worth the time invested.
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You seem to making a gross generalization. Exactly what are you basing that comment on?

If you are basing it on your experience...how many custom knives have you bought and sold.

I know a lot of custom knife buyers who have made money on many of the knives they sold.

No, no one is going to live off of their profits. Then again how many people (who had planned on retiring) are still working because of what happened to their "Traditional" investments?
 
I think if you just want to make money off your hobby, maybe it's better just to bet on a good production model and stockpile it? Think the BM42, the Skirmish, to name a couple. If someone had stockpiled these and sat on them, they'd be laughing now.
 
When I had a Bravo 1, it had Blaze orange G-10 scales, but sold it, and made $20.00 profit.[/QUOTE

Does that include shipping/tax? How many knives have you sold for less than purchase price?

I have had many ventures that have resulted in little success. I have a few that resulted in good money. One thing I have learned is that buying anything retail with the intent to sell it at a profit is a gamble. I just don't see how anyone can expect to be money ahead buying a few knives here and there.
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JelicoCat said:
Sorry I didn't make my point well. I certainly did not intend to annoy or offend any one. All I am trying to say is that buying and selling a few knives at a time with the intent of making money most likely will result in minimal financial gain compared to the effort invested.
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Jelico, you certainly didn't annoy or offend me. Though I didn't agree with your point it made for good discussion.

In regard to minimal financial gain, you might be surprised as to how well some collectors do, especially when you get into the higher end knives.
 
In regard to minimal financial gain, you might be surprised as to how well some collectors do, especially when you get into the higher end knives.
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I sure that there is money to made. I believe that someone such as yourself has enough experience to not lose money. I consider myself a smart guy but would not dream to think I could make any money to speak of buying and selling custom knives. No offense to anyone, but if a person asks for recommendations for investment knives......
 
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JelicoCat said:
When I had a Bravo 1, it had Blaze orange G-10 scales, but sold it, and made $20.00 profit.[/QUOTE

Does that include shipping/tax? How many knives have you sold for less than purchase price?

I have had many ventures that have resulted in little success. I have a few that resulted in good money. One thing I have learned is that buying anything retail with the intent to sell it at a profit is a gamble. I just don't see how anyone can expect to be money ahead buying a few knives here and there.
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Marcel54 said:
Les, I couldn't agree more:thumbup::cool: To be more specific. In the last 4 years I have sold 53 knives from my collection with an average ROI of 12,46% (yes I used Kevin's spreadsheet :thumbup:) and reinvested all the money in other knives to upgrade my collection. The result is that now, although my collection is smaller, it is of a higher quality.

Marcel
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Jelico, the above is a success story (IMO) posted earlier in this thread.
No, Marcel isn't getting rich off of custom knives, however considering the price range of knives he collects 12-13% is very nice return doing something that he loves to do. Try to do that with other hobbies such as trophy hunting/fishing, golf, boating etc. Many if not most hobbies are holes in the ground to dump money in.
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"Does that include shipping/tax? How many knives have you sold for less than purchase price?

I have had many ventures that have resulted in little success. I have a few that resulted in good money. One thing I have learned is that buying anything retail with the intent to sell it at a profit is a gamble."

1. The $20.00 profit on the Bravo was pure profit....I don't generally buy at retail.;)

2. I have sold a few higher dollar knives at less than purchase price, particularly when I made substantial profits on other knives. Overall, I am up nicely.

3. I'm a gambling man, but not a degenerate gambler....don't play with the rent money.:)

4. When we talk about investment, it is all a gamble, right? Speculation, arbitrage, whatever you want to call it. Don Fogg recently made an official notice that he was for all intents and purposes "retired", so selling one of his knives for less than a profit, especially a "good" one, would be a mistake on the part of the seller.....but it happens.

The most important thing is to have fun with this, AND to STAY INFORMED. Information is the most valuable currency that we currently have, both as collectors and investors.

Best Regards,

STeven Garsson
 
JelicoCat said:
When I had a Bravo 1, it had Blaze orange G-10 scales, but sold it, and made $20.00 profit.[/QUOTE

Does that include shipping/tax? How many knives have you sold for less than purchase price?

I have had many ventures that have resulted in little success. I have a few that resulted in good money. One thing I have learned is that buying anything retail with the intent to sell it at a profit is a gamble. I just don't see how anyone can expect to be money ahead buying a few knives here and there.
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No Sir, it's called: business (employing strategy/analysis), for whatever the end result (loss/profit/break even/leverage etc). But if you buy anything without knowing/doing the homework then either you are gambling or super rich.
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