GEC inflation

JTB_5

JTB_5

Gold Member
Feedback: +57 / =0 / -0
Joined
Oct 6, 2017
Messages
7,829
I've been following the recent thread about flippers, and most often, if not exclusively, the knives that are being pilfered for higher resale elsewhere are GECs. It seems to me (though I haven't tried to verify it in any reliable way) that the secondary prices on GECs began to skyrocket once the COVID19 restrictions began to hit. I don't know if there is anything beyond correlation, but I am wondering if the extremely inflated prices that even the most basic GEC models are garnering will begin to subside once the virus is behind us and businesses go back to operating normally. I can imagine a number of factors associated with the virus that would make prices go up, and I hope that the prices will go back down closer to where they were before (accounting for normal inflation).

Has anyone else had this same impression? Perhaps I'm being too hopeful, but I say a GEC listed on Ebay for close to $1000. $1000 folks. That's close to 10 times the price of an average GEC. I can't see that sort of price being sustainable, but maybe I'm wrong and there are collectors out there who can afford to drop that kind of money consistently.
 
My impression is that the prices have been inflated for a while. It seems to me that since COVID-19, that there are less knives listed, but that they are the more inflated ones. Or maybe the inflated ones go quicker. But, like you, I have nothing to correlate it with.
 
I just bought a GEC 44 in green micarta from a dealer for less than a $100 shipped.
The knife is stunning and is just as nice as all the other GEC's I own. Same amazing build quality as all the other GEC's on Ebay that are over priced.
It just doens't make sense to me to pay over inflated secondary prices when GEC is still pumping out excellent quality knives at great prices. Stick with buying from dealers.
 
My best guess is the demand for quality traditional knives has gone up with the amount of quality makers going down (Queen, Schrade, Canal Street etc.) along with most of the older issues not being produced in large quantities due to the then limited demand versus the super steel tactical knives/flippers that dominated the market for new buyers. The traditional demand has been growing the last few years (see Lionsteel, Viper, Benchmade and now ZT entering the market) so there are quite a few more buyers chasing the existing product that leads to higher bids for the most desirable patterns.
 
Collectors don't follow any sort of logic, nor do the people that profit off of them.

GEC knives tick many of the collectible boxes. They are well made, they are fairly difficult to get, they have pretty good production records and the knives are usually clearly and correctly marked, which makes it easy for collectors to know how rare their knife is and what covers they need to finish their set of a certain pattern or run. They are practically baseball cards with a cutting edge (this is is especially true when you look at the pictures on GEC's website)

They have been going up in price for a few years now as the bramd became better know and the capitalists moved in to the market but I think the pandemic production slowdown kicked it up a notch and then the announcement that GEC wouldn't be doing any more SFOs kicked it up another notch.
 
As long as people are willing to pay the inflated prices, then the prices will continue to be high. There’s just simply no way to predict how long it will last, or if prices for the secondary market will ever deflate to reflect the original prices. Folks don’t hesitate to pay the asking price.
Personally, I buy at a price that I think is reasonable and pass up what’s too rich for my blood.
 
During times of economic turmoil you usually see the addition of a few quick buck artists, that think they can make a living off flipping knives at inflated prices. GEC is a good candidate for such activity, since they were often known to flip at a premium. There is usually some hot knife for the flippers to prey on and the buyers they sell to are usually sorry they paid that much when the trend reverses or the supply increases. The lack of supply is part of the draw. If it meets demand, they not only will not sell at a premium, but many won't be interested at all.
Those that get too carried away with a fad usually get burned
 
Peter Hartwig said:
During times of economic turmoil you usually see the addition of a few quick buck artists, that think they can make a living off flipping knives at inflated prices. GEC is a good candidate for such activity, since they were often known to flip at a premium. There is usually some hot knife for the flippers to prey on and the buyers they sell to are usually sorry they paid that much when the trend reverses or the supply increases. The lack of supply is part of the draw. If it meets demand, they not only will not sell at a premium, but many won't be interested at all.
Those that get too carried away with a fad usually get burned
Click to expand...
That's a good point that I hadn't considered. Part of me has wondered, "How can people be spending so much money during such times as these?" and just chalked it up to buyers being part of an insulated segment of the population. But the idea of folks who aren't insulated from economic hardships trying to pad their difficulty by flipping knives is an interesting possibility that makes some sense (not sound economic sense, of course, but psychologically).
 
I read some of the flipper thread as well. One important thing to remember is to look at SOLD prices, current listing price with accepting offers doesn't mean its sold for asking price.
 
I saw an eBay bidding war break out last month for a REC para3... Over $600. So, as much as I liked my para3, I put mine up the next day and sold it for over $600. Sounds to me like the GEC knives are seeing some of the same action that spyderco sprints and exclusives are seeing.
 
wickettedge said:
I saw an eBay bidding war break out last month for a REC para3... Over $600. So, as much as I liked my para3, I put mine up the next day and sold it for over $600. Sounds to me like the GEC knives are seeing some of the same action that spyderco sprints and exclusives are seeing.
Click to expand...

That makes me suspect COVID lock downs being a contributing factor even more.
 
This too shall pass. I saw a thread not to long ago started by a guy bemoaning the loss in value of his hinderer collection. (I remember when the chance to get one was given out by lottery and any lucky purchaser could double or triple his money when he literally turned around from the table.) Similarly, other makers will imitate GEC to get a piece of that market. Prices will go down availability will go up. Those that have to have it NOW will pay a premium price. Those with patience will not.
 
You must log in or register to reply here.
Back
Top