Is it time to face the music? Investing in fine instruments requires skill and finesse

Just like other alternative assets, vintage musical instruments can help diversify your portfolio in unstable times. But a 17th-century violin might need more care than an art work of the same period. How to find a high-quality instrument with the potential for long-term appreciation?

In June, a Stradivari violin called “da Vinci, ex-Seidel,” sold at auction in New York for over $15 million. It is a great example of a collectible instrument. 

“Fetching, beguiling, in excellent condition,” the violin belongs to an “elite group” of golden period instruments, and with a story behind it. It was once owned by Toscha Seidel, one of the  greatest violinists of the 20th century, and used for the soundtrack of the 1939 Oscar-winning movie “The Wizard of Oz.”   

Do violins make good investments?  

According to experts and dealers, violins appear to be the most valuable investment of the fine instrument market.The growth value of fine instruments in the violin family has been consistent for years, with annualized rates minimally between 5-7%, according to Lukas Violins. And it seems as if the market picked up during COVID.  

“Many collectors have lost their fear of buying online, especially with the advent of online auctions,” said Lukas Wronski, an artist violin maker, dealer, expert, and founder at Lukas Violins. Connecting collectors and sellers, he acts as an advisor and expert, and also restores fine instruments. 

“More investors have tapped into the market, and new musicians have emerged. Some picked up instruments as a hobby during the pandemic, others were supporting a new generation of musicians, or buying for investment value.”

How to invest wisely

The most valuable collectible instruments are those created by Antonio Stradivari and Giuseppe Guarneri in the Italian town of Cremona during the so-called Golden Period (1700-1750). Other highly sought-after legendary violin makers include Amati, Carlo Bergonzi, Giovanni Battista Guadagnini, and a few others.

“Italy really is the gold standard in violin making for investors, although there are a few popular makers from France like Jean Batiste Vuillaume, England, Austria and Germany,” Wronski said. “Unfortunately, instruments of other international makers are only collectible within their countries, or as niche collections.”

The best collectibles come in excellent original condition, with documentation and certification by internationally respected authorities. Unfortunately, the musical instruments market has always been plagued by fraud. A piece could be fake even with documentation, Wronski cautions, so consulting with a recognized expert before purchase is highly recommended. 

“Investigating a piece is like detective work,” Wronski said. “Sometimes, an instrument that has been marketed as rare and valuable, turns out to be fraudulent. Other times, however, an overlooked instrument may be identified as having significant value.”

What forms the price

Exquisite instruments of premium quality and in excellent condition are hard to find. “I remember someone looking for the best period Guarneri del Gesu violin,” Wronski said. “They couldn’t find anything because none of these pieces were on the market at that time.”

Instruments are created to be a musician’s working tool, so varying amounts of wear and tear are to be expected, says Wronski. But a few cracks can significantly affect the price.

The name of the maker is sometimes more important than the age of a piece. “Modern, less expensive, instruments could be a good investment if they are chosen with an awareness of the maker’s reputation, desirability and popularity with players,” Wronski said.

These pieces can be excellent alternatives for new investors or musicians who can’t afford to invest seven or eight figures in an authentic Stradivari or Guarneri. According to Strumenti, in 2010-2022, the average annual appreciation rate was 10.7% for lesser-known makers such as Joannes Pressenda (10.7%) and Lorenzo Storioni (13.4%). 

The price may also be affected by the story behind it and the famous musicians who played it. For example, these could be big names such as Fritz Kreisler, Bronisław Huberman, or Isaac Stern. Many collectible instruments now have their names attached. One of the most valuable violins in the world, ‘Il Cannone” played by Nicolo Paganini, was made by Guarneri in 1743, and bequeathed to the city of Genoa. 

Investing in collectible instruments is as much about emotions as profits. “A well-researched provenance can help us authenticate where the instrument has been, as well as provide a glimpse into history,” Wronski said. “How precious it is to hold an antique hundreds of years old in your hands.”

How to preserve violins for posterity

Fine instruments also should be inspected and stored in a carefully controlled climate that has the optimal temperature. This is especially important in cities such as New York that have dry winters and humid summers.

Exceptionally rare and valuable antique instruments belong mostly to international corporations, financial institutions, such as banks or hedge funds, as well as private investors. 

“These collectors often lend instruments to musicians for performances,” Wronski said. “This is very popular in Europe and Asia, and helps support the institution’s or the individual’s image.” 

There’s another reason why collectors lend valuable instruments to musicians to play: the vibrations of the wood keep them alive.“Fine instruments can’t be locked away in stasis, unlike a painting that can be put on the wall under the glass,” Wronski said. 

Violins are made mostly from high-quality resonant woods such as maple and spruce. They are meant to be played. “I have a customer who had to keep his valuable Stradivari in the bank during COVID,” recalls Wronski. “Although it was safely in storage, the violin had basically lost its sound. After some adjustments and playing, the sound came back.” 

Lending a collectible instrument to a performer might be nerve racking for some investors, but insurance can somewhat ease the anxiety.  “Personally, I completely trust classical musicians,” Wronski said. “Most of them learned from an early age to be responsible. It’s thanks to the care of great musicians that we still have instruments from the 16th century.”

 

Image sourced from Shutterstock

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