Knives as an investment?

marcinek said:
While it is true that you can make a killing by stealing items and selling them, it's not true that ethical investments are few and far between. Plenty of people in this thread have have mentioned ways they have managed to make money investing in knives, and I'm sure they have not done it in unethical ways like illegally misrepresenting themselves as one of the brave folks who serve in Military/ROTC/Fire/EMT. I'm sure they make profits on certain of their buys though a huge amount of experience and a good bit of luck.
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Just out of curiosity, do you have any source on the illegality of "straw purchasing" Hinderers?
 
I have never lost any money invested on a knife that I purchased and held as new in box with all documentation.I try to focus on limited or sprints and keep all paperwork and boxes along with the original receipt or purchase price in the box for future reference.I buy some as users and some as collectors.If i really like the model then I will buy two.I do this for the love of it and I don't purchase with the intent of making future profit.I buy models that I personally will use and fits my needs and lifestyle.If I decide I like the latest and greatest then I will consider selling a model I have held for some time if I want to take a big step up for a current purchase.If I only collect versions that I truly am happy with and love, then I will always cherish and enjoy my purchases.I can always sell every NIB knife that I own if I reach a point of financial instability.At that point I think knives would be very low on my priority list unless it was a necessity of my occupation.I will give you an example: The green Para that we are all still waiting for our pre-orders and anticipating having in our hands.I purchased two with the intent of holding one and using one for EDC.I am pretty sure this particular version of this model will never decrease in value.Have fun and enjoy your hobby with a passion and it will pay dividends........
 
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killgar said:
A common mistake that people make is confusing "investing" with "gambling".

True investors will extensively research the comodity/stock/product that they are considering investing in. For example, a potential investor considering stock in a pharmaceutical company will research that company, their products both current and pending, their company profit projections, their corporate structure, the people running the company, any pending mergers, etc, etc.

Gamblers just buy something, cross their fingers, and hope it goes up in value.

The problem with knives as investments is that the knives that are of the highest value at any given time aren't really a neccessity in life. Unlike gold or medicine, or oranges, expensive knives are a luxury item. And the value of luxury items are often at the mercy of whims, trends, and how much disposeable income people have.

My understanding in regards to investing has always been- Invest in things that people can't live without, or things that human civilization can't function without.

Many people own knives that are more valuable today than the day they bought them, but I would guess that this is just a matter of chance and luck rather than prediction or strategy. I doubt that people who bought Randall knives 50 years ago knew that they would increase significantly in value. I'll bet they just thought that they were buying a really good knife.

There's a big difference between making an informed investment, and just getting lucky.
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I am sure that the investors that held stock in MCI Worldcom and Enron would agree with your theory???Oil and telecommunications are a necessity correct?Would you consider firearms a luxury item, whim, trend, and something that everyone agrees we can live without?Could society exist without knives?Why do so many public and private entities invest in publicly traded firearms companys?.Are you saying that the metals and materials that are used to produce knives will be less expensive 50 years from now?How about inflation and capital gains.The stock market is considered investing, but in reality is gambling and you better keep your fingers crossed unless you have insider information or a crystal ball. Knives are a hard asset and even if you don't ever make a dime in profit ever you will still be able to enjoy and use them every day for the next 50 years.The same can't be said of most other investments..I can honestly say that the knifes that I have strategically purchased and later sold have been great investments. I try to make informed decisions when I do purchase or invest in anything.I don't think anyone will get rich from collecting knives as a passion or hobby.I takes money to make money in most cases..
 
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Daft Slice 1986 said:
Buy direct from busse, wait a couple years and sell them for a couple hundred dollar profit.
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I wonder about this. I have bought and sold about 12 or so. I currently have rotated, sold, and whittled back down to 4 core users.

I have had more success with direct buying (or proxy buying from a show).

You can, with a bit of study, and care, and investment of time, get a bit of an increase on even new released knives.

I am not sure that the value of the knives produced today will have the huge increases in price that the older models enjoy. They are producing a much higher volume these days than those knives of 10-20 years ago.

I have a few users, that sold for an increase. Some that I just made a quick decision on purchase and jumped on when they were listed at a great price. I had to know that they were a great price and jump. As there were several "I'll take it" that I beat out by less than a minute.

You see a lot of instant flippers that try to sell immediately after acquisition. Some times they find a sucker, some times they complain.

Other times, they go on Ebay and greatly exaggerate the qualities of the knife ("Insanely rare Busse...............well, really it is one of thousands of that exact model...........maybe........because we don't know production values...........and I have no idea..........").



I will never make any real money at my knife hobby. I buy what I like, and when I get bored, I sell it, and buy another knife I like. I don't have the money to "invest" in knives. I have enough disposable income to buy a few higher end knives, and enjoy them.

Right now, I am at more of a maintenance phase. I have about all the money tied up in knives that I am likely to devote to them for the foreseeable future. I rotate them out occasionally. Selling one or two here and there to fund new knife projects.

I have done well to grow that fund a bit, by occasional luck. But I am not a profiteer or flipper of knives. I have never bought a knife with the purpose of selling it. I have jumped on knives thinking if I don't like them, I can sell it instantly and more than break even.
 
salmonkiller said:
I am sure that the investors that held stock in MCI Worldcom and Enron would agree with your theory???Oil and telecommunications are a necessity correct? Would you consider firearms a luxury item, whim, trend, and something that everyone agrees we can live without?Could society exist without knives?Why do so many public and private entities invest in publicly traded firearms companys?.Are you saying that the metals and materials that are used to produce knives will be less expensive 50 years from now?How about inflation and capital gains.
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Wow. Did you really interpret my short post as a complete summation of the entire stock market throughout the history of wall street? It was a brief response to a question about knives as financial investments. Try to relax. And did I say that any investments were garunteed to be profitable? No I didn't. And as far as guns and the materials used to make knives, or any other comodity, prices will go up or down depending on supply, demand, and speculation. Not exactly a news flash. Did you really need me to explain that to you? :rolleyes:

The stock market is considered investing, but in reality is gambling and you better keep your fingers crossed unless you have insider information or a crystal ball.
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If you're relying on crossing your fingers for your retirement fund, you have my sympathy.

Knives are a hard asset and even if you don't ever make a dime in profit ever you will still be able to enjoy and use them every day for the next 50 years.The same can't be said of most other investments.
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The OP asked about knives as a financial investment, not a personal enjoyment investment. In case you didn't notice this is a knife forum, it's a safe bet that everyone here looks upon their knives as an investment in personal enjoyment, don't you think?

I can honestly say that the knifes that I have strategically purchased and later sold have been great investments. I try to make informed decisions when I do purchase or invest in anything.I don't think anyone will get rich from collecting knives as a passion or hobby.I takes money to make money in most cases..
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Well by all means Mr. Gecko, do tell. What knives have you "strategically purchased" that turned out to be "great investments". What were they, when did you buy them, how much did you pay for them, when did you sell them, and how much profit did you make?
 
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As a financial investment knives are pretty crap. They're a definite cut above lottery tickets, but sticking that cash in a money market account and doing no investing with it would probably net you a better return. Any decent investment has to beat inflation pretty regularly and, for the most part, I don't see knives doing that. How much will a $400 Sebenza appreciate in 10 years? Now compare that to $400 in a CD or money market account with compound interest over 10 years and think about which is gonna be worth more.
 
I honestly think you get a much higher return on your investment buying limited edition and sprint run knives from Kershaw/Spyderco than you will out of customs. The high-end Kershaws (Volt, Speedform, Tyrade, TiLT, SG2 JYD, etc.) and older LE Blurs (S60V, ZDP-189, blue handle, etc.) routinely sell for 2-4 times their original cost. Same with many of the sprint Spydercos. You may not be making as much money as you would with customs, but a 200% return is pretty dang good regardless of the dollar amount.
 
solidorange said:
I honestly think you get a much higher return on your investment buying limited edition and sprint run knives from Kershaw/Spyderco than you will out of customs. The high-end Kershaws (Volt, Speedform, Tyrade, TiLT, SG2 JYD, etc.) and older LE Blurs (S60V, ZDP-189, blue handle, etc.) routinely sell for 2-4 times their original cost. Same with many of the sprint Spydercos. You may not be making as much money as you would with customs, but a 200% return is pretty dang good regardless of the dollar amount.
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This is what I'm thinking too. Bought my Damascus Skyline for $56, and it's selling for about $150 on evilbay.
 
KnottyEagle said:
This is what I'm thinking too. Bought my Damascus Skyline for $56, and it's selling for about $150 on evilbay.
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You're telling me. I have one of the $45 BLSW skylines sitting unopened in my closet. I can't even imagine what they are going to go for in a year or two considering there are only 64 of them. I actually had 3 but let 2 go at cost to other members who have helped me out in the past. One has already sold for over $200 on that auction site. 300% ROI in less than 3 months, not too shabby. :eek:
 
solidorange said:
You're telling me. I have one of the $45 BLSW skylines sitting unopened in my closet. I can't even imagine what they are going to go for in a year or two considering there are only 64 of them. I actually had 3 but let 2 go at cost to other members who have helped me out in the past. One has already sold for over $200 on that auction site. 300% ROI in less than 3 months, not too shabby. :eek:
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That's a mighty fine profit. Before this last run of Damascus Skylines, they were going for $200+. Some of the last TiLTs were going for around $600. Don't even get me started on the 0777.
 
honestly, I don't think using knives as a big investment is a good idea. there are many reasons, but to name a few... the knife industry seems to use fads and hype as a base to model their designs off of. they use designers that are popular; who get a lot of knives sold. in the future, there could possibly be a new set of designers that everyone loves and everybody will want the latest and 'greatest' thing.
now, i know there are exceptions to the rule, but in general, how would you know what people will want in the future? how will you know if the value of your knives will go up? you could have an older model of a knife and they could come out with a new version that everyone wants, rendering the other one, in a way, worthless.

correct me if i'm wrong... i could go on all day about this subject.
 
imacf90 said:
honestly, I don't think using knives as a big investment is a good idea. there are many reasons, but to name a few... the knife industry seems to use fads and hype as a base to model their designs off of. they use designers that are popular; who get a lot of knives sold. in the future, there could possibly be a new set of designers that everyone loves and everybody will want the latest and 'greatest' thing.
now, i know there are exceptions to the rule, but in general, how would you know what people will want in the future? how will you know if the value of your knives will go up? you could have an older model of a knife and they could come out with a new version that everyone wants, rendering the other one, in a way, worthless.

correct me if i'm wrong... i could go on all day about this subject.
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You'll never know if someone will want a knife in the future. That's part of the risk.
 
I am of the opinion that Bernard Levine’s analysis is the correct one. My third edition has a long paragraph "Misconceptions" that starts off “Because the collector market for hand-made knives is overwhelmingly a fashion market, some of its features are counterintuitive.”

The rest of the paragraph explains what he means and I recommend reading it.

Just like clothing fashions, knives go through fashion cycles. When the designer is hot the stuff is expensive and then the market goes off in another direction and the designer is out. As long as the maker is promoting his knives the prices will be stable but when the maker quits, most of the time, prices drop dramatically. There are a few milestone makers, like Moran, Loveless, Randall, but, if you don’t have one actually made by these guys, you won’t be able to afford one. Train left the station and is not coming back.

If you want a toy you can play with, go buy the knife. If you want an investment, Gold has done a lot better than any of my custom knives. And I am going to predict, 20 years hence, will still be doing a lot better than any collection of current made custom knives.
 
Ya wanna make money investin' in knives?

Buy a bankrupt American knife company, there are a few ya could probably pick up pretty cheap.

Invest tons of money in retoolin' and training new employees to hold themselves to a higher standard and produce a superior quality product while keeping the over head low.

Stay on top of all the current trends while not infringin' on anyone else's IP so as to keep product demand high and artificially create rarity by underproducin' the product after a media blitzkrieg creates false demand.

I still can't get over the fact that you guys sell 'em after ya get 'em, in the past 40 years I can count the knives I've sold on one hand, although I must admit, I made a profit on every one I sold but I would never consider them an investment.
 
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