Knives for investment

[canis]

Let me first state that I believe in owning "using" knives. That stated, I was wondering what the forum member's thoughts and experiences were in regards to purchasing high dollar knives with the expectation of getting a good return on your initial investment. Not necessarily the super high dollar custom stuff, but the semi custom or high end production knives (like Microtech or Busse)

I noticed a Busse BM for sale for $400.00. this is obviously a mark up in the actual cost of the knife. I see Microtech knives going for pretty high dollars also.

Does it make sense to purchase high dollar knives that you probably are not ever going to really need or use due to occupation / location / recreational preferences, etc.
other than for the fun of owning them? I would think that part of the pride of ownership is knowing that someday you could get your intial investment and then some back on your prized possessions.

This question has come to my mind due to the fact that, no matter how much I don't like it, my family and job responsibilities do not allow me to take my Battle Mistress on a 2 Week hell week of hard core survival training or anything even remotely close. While I appreciate the knife for what it is and what I once (in the Marines) would have been able to do with it, it is relegated to the 2x a year camping / hiking trip and yard duty.

I use the Battle Mistress only because it is the best example of what I'm talking about.

Well, what do you guys think? Do you expect to get a little money back on your favorite high end knives?

Thanks,

Chris

 

[Dannyc]

Hiya Chris!

Well, nice topic I must say. I've been wondering myself up to when my knife-collecting sessions will end. And then what? Do I keep them for good? Do I end up selling them again?

These are already considered investments, specially if you've spent over thousands of dollars for the collection. I would like my kid to someday enjoy what daddy used to enjoy.

As for it making sense, well...

I think for me it does. It's a collection, something that I can sit back and admire (and polish if I have time). I don't have any future plans of using each and every one of them of course, hehehe.. Once I get my display rack all set up, that's where the fun begins.

For now, it cracks me up whenever I visit my friends and see all their stunned faces whenever I whip up one knife after another to show them.

Once it's on the display rack, that's about it for knife-carrying.

Dan

 

[Cliff Stamp]

Chris, I don't expect to make any money on them, in fact the opposite, usually I take a loss. I don't really collect knives as such and my normal carry is always evolving as I find better replacements. I don't mind selling for a bit less than I payed for it as I usually get more than that out of using it.

Collecting for the purpose of making money is risky no matter what you are collecting. Les Robertson commented on this in some detail with respect to knives in his forum some time ago. Prices and value change widely. For example lets take your BM. There is no doubt that you could sell it now for its sticker price - however imagine in 5 years if Jerry releases an even better blade material and changes all his knives to that. How much is the INFI BM worth then? From a user point of view probably below the sticker price, from a collector maybe above since they will not be made any more.

-Cliff

 

[canis]

Good points all. I'm not even sure why I started to think this way. I guess when I look at even a $300 knife that is not being used to it's full potential, I have to wonder if it's really necessary for me to own it. It is like owning a Harley Davidson in the garager and only getting to ride it once a year - It's nice to own and look at and polish up, but is it really worth the money to let it sit in the garage? Is it worth the depreciation in price that it will suffer as it sits in your garage?

Makes me wonder if I should quit hoping to be able to get off into the woods like I used to and just trade the damn thing in for a large Sebenza that I can actually use every day?!

Chris

 

[Chiro75]

Like any retail market, knives are pretty volatile from an investment point of view. It's sort of like gambling in a way...if you have enough liquidatable capital to put into the knives, then most likely you will probably come out ahead. You might also lose your ass. Could go either way, as with any investment.
There are obviously certain knives that are going to have more value than waht you paid for them. These would be limited edition knives, for example the Tony Bose/Case knife that is coming out. These, because they are limited in production, will almost certainly be worth more than what you paid. On the other hand, questions that need to be asked are how much more will it be worth, and when? Some knives have immediate turnaround value and you get a good deal from someone on it and can turnaround and sell it at profit, while witj others they may require some time before they are valuable to collectors.
One thing I would stay away from (but I am not a collector) would be most custom knives for several reasons:
1) Custom makers are hot, then they're not. Without experience it's probably tough to figure out who the next big thing will be.
2) Custom knives are generally a larger investment.
3) because of the top two, finding buyers for them may be tough. I think the custom market is best left for people with experience.
It seems that as far as production knives, numbered knives from a limited edition are the best bet, or prototypes and that sort of thing that are different from the production knife in some way. Also, knives that are tough to get ahold of can have value simply because people may be willing to pay more for the product immediately rather than get a lower price and wait for months/years. YOu may be able to sell a Talonite Cetan, for example, for a good profit because Rob is backordered right now and there is a wait. Same with Busse and that sort of thing. Many people would gladly pay a couple hundred extra bucks rather than wait a year. as with any investment, though, you have to be able to tolerate the loss. If you can't afford to lose the money you're putting into it, then you should forget about this type of investment.
Steve

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http://www.geocities.com/CollegePark/Lab/1298/knifehome.html

 

[Brian_Turner]

Just makes me pull out the old quote:

"Want to make a small fortune selling knives? Start with a large fortune!"

I don't count on any investment value in any knife other than a quality, high end custom. Even there, I don't expect that value to be realized any time near term.

I know that there are markets for production pieces and semi-customs, but by nature there are too many of each piece in existence to lend intrinsic value to a single example. How much can a "used" (pre-owned, NIB, whatever) piece be marked up if a brand new knife is readily available from the factory, and several pre-owned knives are available here, at KF, at Ebay, and wherever?

Odds are good you can shop most production and semi-custom knives down below the retail price. And herein lies my point - If you are talking about a knife which is produced in quantity, then there will be more than one person trying to sell it. Competition = lower prices = no real investment value.

Maybe if you're a good horse trader you can realize a few dollars here and there, an occasional big score when you manage to buy low from someone less than knowledgeable, or rip off a newbie in a trade or sale, but I don't see any steady money coming from these types of knives.

 

[grnamin]

IMHO, purchasing high dollar value knives, especially the embellished ones, is akin to collecting jewelry. In this case, it's jewelry that can also cut. My idea of investing in good knives is simple. Get the best that I can afford. I don't have any knives with embellishments. If I can't afford the best, then I'll save up for it. I have only 4 knives in my "collection". They are:
1. mini multitool
2. regular multitool
3. locking folder
4. large fixed blade

Any of the knives in the above category can be replaced if something better comes along, but the collection size stays the same. What happens to the ones that were replaced? I either sell them or give them away.

------------------
-Greg
You don't need a parachute to jump out of a perfectly good airplane. You need it only if you want to jump out twice.

 

[Dannyc]

Greg, if you're going to be giving them away, you know where to get in touch with me.. hehehe..

Dan

 

[Gollnick]

Right now, the US is in a very exceptional period of economic growth. You could invest in bottles of cod liver oil and probably make money. But, if we should hit a recession or, God forbid, a depression, the bottom will fall out of all collectibles really fast.

Bonds and money market instruments keep chugging, even through hard times, provided the issuers survive. Stocks may take a hit, but they have, historically, recovered all lost ground within just a few years. Collectibles generally don't.

Bonds and money markets go:

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Growing slowly but surely even through difficult times, provided the issuer survives.

Stocks have historically gone

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had you just held the stock through the unset, it would recover and, years later, your growth would be the same as if the upset hadn't occured.

Collectibles go

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The take off again after the upset is over, but they never recover the lost ground.

Chuck

[This message has been edited by Gollnick (edited 18 June 1999).]

[This message has been edited by Gollnick (edited 18 June 1999).]