Investment-grade knives

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DeckardB26354

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Which makers do you think provide the best opportunity for price appreciation over 10-20 years? I'm talking about the knives that reach a level of art.

I don't really know much about custom makers, but I happened upon Jay Fisher's website, and was impressed with all of his work.

Prices start at $600 for fixed blade and $1,000 for folding knives. While I'm not close to putting that kind of money into anything right now, let alone a knife, I just wonder if certain customs are good investments.
 
If you want to be a millionaire by investing in knives, first start by spending 10 million.
 
DeckardB26354 said:
Which makers do you think provide the best opportunity for price appreciation over 10-20 years? I'm talking about the knives that reach a level of art.

I don't really know much about custom makers, but I happened upon Jay Fisher's website, and was impressed with all of his work.

Prices start at $600 for fixed blade and $1,000 for folding knives. While I'm not close to putting that kind of money into anything right now, let alone a knife, I just wonder if certain customs are good investments.
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To answer your question, "yes" certain custom knives are good investments.
The more important and most difficult question to answer is "which ones"?

It's much more complicated than someone advising you as to what maker to buy from.
You need to know from what maker, to buy what knife, at what price.

I wouldn't recommend for a new collector to start "investing" in custom knives no matter who has advised them on what to buy.
Buy custom knives because you have a passion for them. Do your homework first to determine your preferences, familiarize yourself with the makers and to get a feel for the market. Then start buying cautiously. IMO, the #1 mistake new collectors make is buying on impulse.

Play your cards right and you can finance your ultimate custom knife collection by buying and selling on the way to getting there. Some collectors consistently make 10-25% ROI on buying/selling custom knives.

As far as picking the maker's $300 knives of today that will be $5,000-$10,000 knives 10-20 years from now? Well that would probably be like picking lottery numbers.
 
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This is a subject that is brought up every once in a while and consistently divides the community here. My answer is generally no.

My guess is that most people who buy and then sell knives lose money on the transactions, when you factor everything in. People who make a good return (most of those numbers do not factor in taxes by the way), do that over a few years, not 10 or 20, and it requires very significant involvement. Finally, to the extent that one can make money trading knives, it's not very scalable.
 
DeckardB26354 said:
Which makers do you think provide the best opportunity for price appreciation over 10-20 years? I'm talking about the knives that reach a level of art.

I don't really know much about custom makers, but I happened upon Jay Fisher's website, and was impressed with all of his work.

Prices start at $600 for fixed blade and $1,000 for folding knives. While I'm not close to putting that kind of money into anything right now, let alone a knife, I just wonder if certain customs are good investments.
Click to expand...

Yes, certain custom knives CAN be good investments, but who knows where all markets are going these days? That being said, look for makers who already produce high-quality work but are just starting out. Makers who are members of a guild or professional association, and are striving to reach the next level in that guild/association. Reaching that next milestone not only brings the knifemaker more attention and press, but also is recognition of the high quality of their work. Makers with good personalities, who communicate well, seem honorable, and are friendly. These are the makers most likely to last, and build a fan base. Look for makers who understand internet marketing. I wouldn't buy based on what's hot today, as trends change. Buy direct from the maker if possible. You'll get more bang for your buck. Look for makers that still take orders, and may be able to make something unique. Keep your eye on knife community media, press, magazines, and knife forums, to see who is up and coming, garnering respect, and attracting the attention of others in the field. Finally, collect what you personally enjoy. That will make it more worthwhile if you never gain a dime.
 
My answer is that knives are NOT a good investment.

I buy knives because I LOVE them, and I like the makers that I buy them from.
 
I believe whether custom knives are a good investment or not all depends on the individual collector.

If investing and appreciation in monetary value is part of the collector's goal and enjoyment than "Yes", there's a good chance that their collection as a whole will be a good investment.

If investing and appreciation in monetary value is not a goal or part of the collector's enjoyment then "No", their collection is most likely not going be a good investment.

Thus, those whose collections are worth more than they paid will probably say custom knives are good investments, those whose are worth less will probably say they are not. The most important thing IMO, is that everyone gets the most out of their collection whether it be monetary gain, enjoyment or a combination of both.

IMO, the answer to your initial question is definitely "Yes", certain custom knives are good investments and "Yes", some maker's knives are more apt to appreciate in value than others. The makers that promote the industry and themselves, stay on top of styles and techniques, take care of their customers, work to get their knives in publications, attend shows and events and such are much more likely to produce knives that will be good investments.
 
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My advice - take all the advice you can. AND DO NOT LISTEN TO ANYONE WHO TELLS YOU WHAT MAKERS TO BUY.
 
One of the more interesting things to do is to check back issues of Blade(15-20 years back) and see who was the hot back then, and see how they're doing now. I'd venture to say 95-99% wouldnt've provided returns of any real substance.

Fame is very fickle in knifemaking.
 
Ellis said:
Schmidt,Steineau,Loerchner
Dave
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Dave gives EXCELLENT advice here, as one of the top purveyors of high end knives.

Study the three names....ponder it....top dollar paid.....now...step back...

Jim Schmidt is deceased, he isn't taking orders anymore, and his low output means that most of his work is gone to the public....the collectors vying for his work are well heeled, rabidly enthusiastic and legion.

Jurgen works very slowly, the only way to get his work, primarily, is to win a lottery at a show....his work starts at the mid 5 figures and goes supernova from there.

I would personally kill for the last folder that Wolfe Loerchner posted a picture of....again, big bucks.

If anyone wants to INVEST in knives, there are a number of ways to do well...but you have to LOVE knives and be willing to LOSE it all....never play with scared money.

Best Regards,

STeven Garsson
 
To some people it's all about the knives and the experience. To others it's just about the ROI. Then there are those that get a kick from both the knives and the investing. I'm in the first group. Over the years I have changed from not caring if I lose money, to doing my best to pick makers where I will at least break even if my knives ever do need to be sold.

There is no way that I could ever invest in the knives of the makers recommended by Dave. They are way out of my price range. I have my own ideas of new makers that would be good investments, but because I am not into that area of collecting, I will not mention their names. They are just hunches anyway. The only sure investments are the makers that are already proven, and they are all high dollar.

DeckardB26354, what kind of knives are you looking at collecting. Do you favour fixed blade, folder, tactical, traditional...? What are you thinking would be your current upper limit for the amount you would invest? You might want to avail yourself of the expertise of people such as Les Robertson and Dave Ellis.
 
I would add Michael Walker, making it a Western World high end quartet:
Loerchner, Schmidt, Steinau and Walker (arranged alphabetically)...

All the best,
David Darom (ddd)
 
Like the last few posts have stated I believe the only way to think of knives as an investment is to stick with very established makers that have sewn there reputation over time. These are the makers that make limited knives or might be at the end of there making days. This is speaking of looking at this in a pure investment standpoint to try and guess who will take off and who will be a flash in the pan or worse yet tarnish there reputation or just quit is to speculative and you would need a crystal ball. I buy knives from all level of makers and I do not buy as an investment but with that said I usually do not loose money on knives when I flip one to buy another. If I am going to loose money I don't sell.
 
Hi Deckard,

Question???

Do you want a collection?

Or do you want an investment?

While the two are not always mutually exclusive....it usually turns out that way.

Short term buy and re-sell for a profit, using the "Time Value of Money" will return...long term a much better profit than buying a knife and hoping 20 years from now to hit it big.

It is a "no brainer" to buy what you like...Just as it is a "no brainer" to buy proven performers. However, with the proven performers if you buy a Schmidt or Lochner or a Walker what kind of ROI are you looking for on your money?? Then add to that "how long will it take you to get that ROI?"

BTW, 3 years ago Mr. Ellis was touting Loveless and Moran....and so it goes.

Loechner is a superior maker, but his aftermarket stock went up primarily because of a huge sale by one collector to another collector at the Chicago show last year.

The question is now is there another buyer out there willing to pay the collector who bought that collection a an equivalent ROI in a particular time frame.

Another note, is that generally the collectors buying knives in the 5 figure and higher range are not doing so for "investment" purposes. As they have other investments for retirement, etc. Although because of the amount of money spent many people point to those makers a "good investments".

There are numerous knives out there that can be bought for $500 and resold for $550 fairly quickly. I would point out that is a 10% ROI. However, most are quick to point out..."It's only $50!"

If you buy a $1,000 knife and ten years from now sell it for $2,000. People get excited that you made $1,000 on that knife. Over ten years...you guessed it your ROI was 10% per year.

You can find investment knives starting at less the $200. The key is to know what your ROI expectation is and how long are you willing to wait to get that.

If you want to make money with custom knives...time to start doing your homework!
 
In retrospect, my question was like asking how many angels can dance on the head of a pin!

But, I do get it that there is no way to know who's going to skyrocket in value ten years from now, just as no one knew a Van Gogh would sell for tens of millions back when he was cutting his ear off.

Also I wouldn't be so foolhardy as to have a knife collection as part of a retirement plan. NO, they're made to be admired, handled and appreciated for their craftsmanship. Looking at some of the customs in the links here all I can say is JESUS CHRIST! These knives put any piece of jewelry I've ever seen to shame.

Thanks for all your replies, I appreciate it.
 
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