What makes a knife go up in value?

R

ranmcc

Joined
Nov 12, 2007
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Do the price of handmade knives really go up in value? Are they a good investment over time?
 
It all depends on the knife, and how much people like them. maybe if chris reeve knives went out of buisness, then sebenzas would become much more valuable for a short period. other then that, there are very few custom knives that you could get more than you paid for, or so i would think. buy stuff you like, and be happy keeping it or selling it at a loss.
 
ranmcc said:
Do the price of handmade knives really go up in value? Are they a good investment over time?
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A mild yes and a strong no IMO.

A knife like Strider or CRK , or a hot custom like Hinderer , you can at least make most of your cash back , if not a little more depending on how hot , like Hinderer's offerings.

You would be far better off investing in Gold or Silver which will never lose value and always be worth something , at least.

I wish I had as much weight in silver or gold as I do in knives , I'd have some serious cash !

If one is thinking about buying costlier knives for barter in a severe economic crisis ( likes of which could happen soon...) that too is a bad idea. A $400 knife in a depression isnt going to be worth anything near what you expect for it. The majority of folks are not going to care at all about one's fancy Ti framelock with M4-S30 whatsis when the chips are down.
Remember to most folks outside of these forums a knife is a knife is a knife.

My ramblings..

Tostig
 
The knife trade is pretty simple. All my knives are free. Generally I get paid a small amount to own them.

Tip #1: Buy nice knives. Minigrips and Delicas are so common and so cheap that there's not much reason to save $5 and get a used one when you could just buy a brand new one from a reputable dealer. Nicer knives are the ones people have trouble affording and they will be more willing to save $30 on a used one in that $200ish range.

Tip #2: Buy fairly rare knives. Be careful here. Don't buy a knife that's TOO rare because it'll be YOU paying for the rarity. You need to buy a knife when it's mildly rare and hold onto until it's quite or very rare. That's where you make profit.

Tip #3: Know the market. Who would have predicted the little $70 Dodo (which didn't sell very well) would be fetching such huge prices today? I did. It took time for people to appreciate that knife, and it's low volume sales, combined with its uniqueness and collectability made it a sure earner.

Tip #4: Jump on limited production and sprint runs. Especially Spydercos. Like that orange S30V Manix. On launch you could get them for like $110. Now just a few months later I see them go for $150+ on eBay. It was a sure investment. Buy a few from several dealers, hold onto them and liquidate them later.

Tip #5: Patience. Unless you get a really sweet deal, knives aren't going to immediately jump in value. Sometimes you have to wait out the market--wait for that one limited edition Benchmade to go out of production and the dealers run out of inventory--then wait another 6 months. THEN sell.

Tip #6: Take care of your stuff. If you, like me, use all your knives, use them intelligently. A simple example would be don't keep them in the same pocket as your keys. A few weeks ago I sold an old Spyderfly that I bought in 03. I flipped it and used it. When I mailed it off, the buyer told me it looked brand new. It's not because they're dresser queens. It's just because I make good decisions in their use.

Anyway, those are techniques that can help explain why the market of knives fluctuates and why one particular model goes up or down, and how the knives you, individually, own may fluctuate in value.

I don't buy knives as an investment, and I wouldn't recommend you do it either. I do make a small net profit over the years, but I do this to make my hobby affordable. I have no intent to make money. I buy a knife because I love it, and when I get bored of it, I just try to maximize my return and, in effect, exchange it for free, or for a small profit, for another one.

Anyway, good luck.
 
Having 10 knives go up in value 20-30 dollars is offset by one 200-300 dollar knife that wont sell. Seems like a lot of risk for little reward. Factor in 2% inflation a year and your not going to make anything worthwhile unless you get lucky.
 
Knives are a crummy investment for me because I never sell any. My heirs may do OK on those Fowlers, however.

DancesWithKnives
 
ranmcc said:
Do the price of handmade knives really go up in value? Are they a good investment over time?
Click to expand...

No!

You buy & collect knives because you like them.

Knife prices go up and down, mostly down. Knife fads come and go, so do knifemakers. What is hot today, can be worthless, 5, 10 years from now.

Nobody knows whether CRK, Busse, Strider, Hinderer, Spyderco, etc. will be valued 10-20 years from now. Buy them because you like them, if it goes up in value, you are lucky, or it could just be inflation.
 
Tostig said:
A mild yes and a strong no IMO.

You would be far better off investing in Gold or Silver which will never lose value and always be worth something , at least.

Tostig
Click to expand...

gold.jpg


I bet the people buying gold in '79 and '80 were saying the same thing...

Perceived value and relative demand drive prices.

Some people do well with knives as investments, however, they know how - and spend considerable time and effort- to gauge the market. They do not necessarily buy what they like, but what is the current fad in the market. Their collections turn over as the market ebbs and flows- antique production "traditional" knives ==> "high end" tactical folders ==> custom forged bowies ==> ???

What makes a collector buy a knife? It's what everyone else is buying... What makes a knife worth more than when it was bought? The perception that there is one more person out there that wants it more than the current owner... Do custom knives appreciate when the maker is no longer making knives. Not necessarily. If there already was considerable collector interest, then the perceived lack of supply could drive prices higher. But, that maker's style may eventually seem stale and outmoded next to current fads and technologies...

Are knives a good long term investment? If the best that you can expect is to not lose money, then no. Factor in what you could be doing with your money if it was not tied up in "collectibles" add to that inflation and you get a pretty resounding NO!
 
The market for collectible knives is very thin. Most people out of in the street would prefer to buy a new flea market knife over your precious; they won’t be able to appreciate the quality, they would worry your old knife may be somehow tainted or have been used in a crime and they would consider you crazy to have paid so much for a knife.

Your ability to realize a reasonable price for your collection largely depends on you. It is your talent, knowledge and energy to market these things that will drive the result. You know what the knife is, where to find those who might be interested and which factors those people would appreciate about your example.

Unfortunately, not everyone has a talent for sales, and as we get older our abilities often degenerate. Ultimately, we’re all dead and our families are stuck with a pile of clutter. You can leave reams of notes, but unless someone had caught the knife bug, no one is going to want to go through them. At best it would be a very dry read and they wouldn’t understand any of it; and the fact that your relative thought a knife may be worth a lot of money is not going to convince a buyer to part with his cash.

Ultimately, this is a hobby. What you put into knives is an entertainment expense. There is a real potential to recover much of what you put into the hobby, but you really have to enjoy knives and knife collectors to achieve that. It’s not like precious metals, equities, bonds or real estate, where anyone can call a local broker and trade it at the “spot“ price.

I can take comfort in knowing that even if the family realizes Pennies on the dollar for my collection, it is still a windfall for them; and it would certainly make some fellow collectors very happy To get the stuff.

Edited to add: The short answer to “what makes a knife go up in value“ is you .

n2s
 
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ranmcc said:
Do the price of handmade knives really go up in value? ....
Click to expand...
so basically one pays for fine workmanship.
the high popularity of a craftsman
creates the existance of a wider pool of existing collectors.
and at times, even long after
the demise of the gifted maker.
in short,
things which are near perfect
in form and finish,
are often better appreciated.
stuff embelish with
precious metal and gems
seldom loses its value.
on the whole
things naturally fluctuate
according to the times.
the shrewd investor
scouts and researches
for available opportunities.
and always
buy low to sell high.
success then
is a question about timing.
bottomline, is to never loose sight
of the joy in collecting.
the pay off is secondary.
trends are dynamic
when it comes to human nature,
nothing stays a hot favorite
forever.
it has a life span...just like you.
 
The factors that influence the value of "vintage" items are in many wayts universal. The supplay and demand rel;ationship works for vintage and antique cars, furniture, cameras and buttons.

The value of something hinges on what someone will pay for it and nothing else.

When it comes to knives, scarcity and desirability rule. Randall knives continue to go up as Randall Made bumps the price every year (every month?). They can do this because the demand continues to allow a four-year waiting period. Folks still want them. Interestingly, pre-owned Randalls go up in price too, but generally lag behind new ones unless there is a significant provenance.

Chris Reeve knives also command a premium price responding to similar supply/demand pressures. But their discontinued one-piece, hollow handled line now are untouchable for under a grand or two. . .. scarcity. The same thing applies to knives by Scagle and Loveless, Moran and others in the collectable custom knife scene. The field of fine art is famous for this dead-guy value effect.

Another factor is condition: A knife that is pristine, as-new condition, complete with the box and all paperwork. An untouched factory edge is important. Some folks look for sheath patina or sheath wear as a value down check. This is mostly true for knives and film cameras . . .and collectable porcelain figurines (Hummel, LLadro) I have seen a collectable vintage camera that was valued somewhat less than the box, packaging and original receipt it came with

Check out the Antiques Road Show episode where they value this guy's vintage Rolex at a half million bucks because (among other things) it still had a sticker on the back of the watch case showing that it had never been worn. That sticker alone bumped it from $400,00 to $550,00!

 
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