One reason not to invest in knives...

Triton

Triton

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On occasion over the years someone will come here asking which knives are the best investment. They might get a smattering of suggestions of this or that one or a slightly more thoughtful "buy something from this or that maker." In the main though they get what I consider to be good advice which is "forget about knives as an investment, buy what you like.". However this was just reinforced for me as I was considering things I see in the for sale custom section. There are or have been several collections or partial collections up for sale. The owners obviously spent a lot of time and effort to build a collection that they really loved and eventually they will probably sell them probably for a deep discount. Not a great investment strategy. Personally perusing some of the posts I would not give a dollar for what I see.

Why is that? I think it may be that knife preference in the custom space is just too personal? Or perhaps we are mostly interested in the newest shiniest thing? Perhaps I am just out of touch and assume that there are lots of folks that feel the same way?

What say you? Is your collection an investment really? Or is it something for you and you alone with little real value to someone else?

Appreciate you reading through all my late night gambling...
 
Every knife I've bought as an investment, I've regretted. It comes down to two things.

1. I buy something really rare with the intent to trade for something else rare that I'm more interested in. . .
What really happens is, nobody ends up having the stuff I'm looking for, and I'm stuck with a knife I was never in love with.

2. I buy a knife knowing the price is going to skyrocket, and when it does, I can't bring myself to sell it because I feel scummy asking the new market price
when I didn't pay anything close to that.
 
I buy knives fully expecting to lose value. It is a hobby/entertainment expense, and at such it retains much more value than most other forms of entertainment. It also provides an endless window into our own past history and culture, since very little human activity has ever happened in the absence of knives.

So what if you lose a few bucks in the exchange. Much of that is a reflection of your ability and desire to sell rather than the specifications of the knife you are selling. When I lose money it’s because I choose to, I rather not sell my knives, but to keep them for as long as possible. If I would put a few quarter of the effort into selling that I put into buying, the results might be very different.

N2s
 
Custom knives are probably the worst from an investment angle (not an enjoyment angle). A lot of personal choice, relatively expensive, and even a fast maker, that's good at social media, can't match a factory for production or promotion. Very few have the luck of a Randall, Loveless or even a Strider. Collectors need a history they can look back on.

A good exercise for any collector thinking of investing in knives is to buy a stack of 20 year old magazines or look at 20 year old from posts and see who was hot then vs now. Many popular makers get lost to history. I remember once even the great Pat Crawford lamenting this.
 
Most of my hobbies won't even get close to the 60%-70% residual value that knives do. Not an investment but a relatively reasonable hobby.

Especially if you embrace the secondary and swap opportunities. Not the dumbest money I've ever spent. lol
 
I collect a lot of things, not just knives.

I collected these things because they gave & continue to give me enjoyment & I would never sell any them, unless they no longer provided me with enjoyment.

I also would never sell any of these things for profit or in order to raise $ for other things because, just like stocks, I have never spent anymore $ on the things that I collect than I couldn't afford to lose.

So, I never considered anything that I "collect" to be an "investment."

However, if you chose well & keep the things you have collected over a long period of time, many of those things will rise in value (if for no reason but inflation) thereby increasing your net worth but you cannot profit from any of these things unless you sell them.

And, if you are a "true" collector, as I am, you seldom sell anything.

So, IMO, unless you are in the business of buying & selling knives for profit, either in the short or long term, you can never consider any knife purchase an "investment." 🤷
 
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I have nothing to add but am going to echo a few of the thoughts here...


I think that knives are an OUTSTANDING liquid asset. I haven't made a single dime off of any knife that I've sold. However, with that, I've never met a knife that I haven't been able to sell almost as quickly as I've purchased it. Beyond that, I've usually recouped about 70%-80% of my initial spend...and that's good enough for me.

Do I have some "desirable" knives that I truly believe that I could make a dollar or two by selling? Sure. However, there are a few knives in my collection that I've been able to acquire simply because the Seller chose not to go the "scalper" route. I haven't been a member here for very long. Despite that, I know that I'm not in the knife selling business and will always remember what it was like to score a great knife (*at a very fair price), here in The Exchange. Because of that, if I ever do decide to part with a knife or two that I feel is highly desirable, my hope is that I can pay it forward and get it to the "next guy" to enjoy...at a VERY fair price.
 
Alone said:
I have nothing to add but am going to echo a few of the thoughts here...


I think that knives are an OUTSTANDING liquid asset. I haven't made a single dime off of any knife that I've sold. However, with that, I've never met a knife that I haven't been able to sell almost as quickly as I've purchased it. Beyond that, I've usually recouped about 70%-80% of my initial spend...and that's good enough for me.

Do I have some "desirable" knives that I truly believe that I could make a dollar or two by selling? Sure. However, there are a few knives in my collection that I've been able to acquire simply because the Seller chose not to go the "scalper" route. I haven't been a member here for very long. Despite that, I know that I'm not in the knife selling business and will always remember what it was like to score a great knife (*at a very fair price) here in The Exchange. Because of that, if I ever do decide to part with a knife or two that I feel is highly desirable, my hope is that I can pay it forward and get it to the "next guy" to enjoy...at a VERY fair price.
Click to expand...
Wise words! Pay it forward regarding Les George
 
I don't like owning things I won't use. Even my near $1k RH Knives Tasca 2 gets carried and used. The only knife I don't carry is my Biryukov #7 because of it's size. It's illegal to carry here in Colorado, which is why it soon will be on the exchange unfortunately. Unforeseen consequences of the move.

Anyway, most consumable items are not good investments, especially in VERY niche markets, especially long term as demand and trends change. The more niche the market, the less return you'll get on your investment.

There is always something to be said for "classic" designs, but unlike that 67 Camaro SS, Case and Buck etc are still making the same designs decades later, which also diminishes value to many.
 
I consider any monetary loss to be the amount it cost me to “rent” the knife for the time that I owned it.

In almost all cases, the knife brought me at least some pleasure while I owned it. I don’t mind that coming at a cost.

When I look at it that way, it doesn’t seem like a bad deal at all.
 
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