Is it rewarding to invest in music instruments as an asset class?
In a contemporary setting, antique stringed instruments have proved to be an excellent alternative investment. The fact that we cannot source fine wood that was used by the old craftsmen - makes these fine instruments irreplaceable items. The potential returns offered are virtually uncorrelated with any other asset class, hold steady over time and are lucrative. In comparison, the risks are low and inexpensive to hedge.
What is the size of the market currently, the rate of growth and the prospects of investing in this asset class?
The market for fine instruments is presently valued at approximately USD 22 billion. It continues to grow as instruments crafted by newer makers have gained in importance. Depending on which era of violin making one chooses to invest in, growth should follow the trends of the past 50 years, wherein it returned 8-15% annually. I actually think this is sustainable over the next decade.