Buying Music as an Alternative Investment Strategy
How an Old New Industry can store wealth better than the traditional BS.
Boomin
Vinyl Records are rapidly becoming a $1 billion dollar industry. Despite being in the age of quick instant downloads, streaming and pirating, physical record sales have consecutively gone up the last 11 years. I think there's many reasons why but the main reason is the Authenticity and Experience. You own a work of Art buying an LP. Instead of just hitting a digital play button, you go through this whole ritualistic process that brings you much closer to the music. Romanticization? Maybe, but in the age of Instant Gratification it's good to slow down once in a while, and records are perfect for that.
But how are they an investment strategy?
One company that started out as a simple crowdsourced catalog of music releases is now a behemoth in the space: Discogs. They evolved from a database of discographies to a marketplace of music. Buyers and sellers come together, rate each other, and anyone can set their price or haggle. As of right now they have 25,113,766 records for sale. Most Records, if kept in Mint / Near Mint condition can hold their original value quite well. Limited, colored, and exclusive records can instantly shoot up in value.
Here are a few examples:
If you bought a copy of the limited green translucent Queens of the Stone Age's first album, back in 1998, it is now selling for $1,903.27.
If you bought a copy of Tool's 2nd LP album Aenima, back in 1996, its now going for around $500.
If you bought Demon Days by the Gorillaz back in 2005, it's now going for $200ish.
What if I don't have any old records?
Yes these are 20 year old classic albums by huge bands but even new albums can skyrocket. Here are a few examples of new records that have increased in value:
You could have bought Gunship's self titled debut, a limited floppy disc artwork cover with an amazing picture disc for about $25. It is now selling for 3x that. One copy even sold for $117.
There was a limited cream with blue and orange splatter of Anderson Paaks album Malibu that sold for $25. It's now about $50.
Massive Attack released a single on a beautiful blue and it originally sold for about $20. It is now $60.
How can I find these records and how will I know what's valuable?
Look out for Limited (the less the better) and colored albums from artists/groups that have a strong niche following.
First of all, for me, I buy what I like. I buy what I know I'm going to want to hold on to for a long time. Even if I never sell it, I still have a great album for me to enjoy forever. Occasionally, I'll buy two copies of certain albums. I bought 2 copies of the above Malibu album $25 each. I sold one for $50, so essentially I own my copy for free. I bought 3 copies of the Gunship album. Paid $75 for all 3 and I sold 2 of them for over $100 each. I still own my copy with $125 on top. I bought 2 copies of Dear Friend, kept one sold the other for triple. Free album with $ on top.
winning
Doesn't everybody hate Resellers?
Yes there is alot of hate for "flippers" but it all stems from resentment. You cannot live your life based on what other people think of you. If someone wants to pay a certain price for something then it's worth that price, its all voluntary baby. As we all know:
So here is a list of resources for you:
Mint Space
Sly Vinyl
The Limited Press
Colored Vinyl
r/vinylreleases
@covertbooks
Follow Record Labels you like, join many newsletters and keep on eye on my blog. I'm going to post records that I think will be valuable.
'til next time steemians, I love you all
The Best Music on The Internet
Wow, I had no idea this was a thing. Maybe I'll buy that unreleased will tang clan album....oh wait....
It Ain't Nuthing ta Fuck Wit
Amazing post. i need it in my collection.
Hey! Thanks for the resteem, feels good man...
IT'S AN HONOR.
Amazing music, and really interesting post! Vinyls and old records are like cryptocurrencies, the price can explode at any time! Marvelous content, as always my dear SoundWavesPhoton! <3
Yes, what I love about it is the limited downside. Worst case is I end up with a record I really like. Best case is the Moon! Haha thanks for the comment @troilo
This is interesting . I am aware that there is a "vinyl" industry that has popped up but many of the people making money in the space are not artists. I don't really think it's sustainable and I made a post about why. I was in a pro band for 1 year and quit eventually because while you CAN sell vinyl and other physical products the OVERALL trend is they will disappear. The older generation is largley supporting these buys and when the younger generation grows up they won't even see music as a product to buy let alone play records.
I respect your opinion but it seems to me it's the younger generations that are responsible for the resurgence. Millenials with disposable income are buying records like crazy. Maybe its harder to make money the Pro route but any up and coming artist can do really well on their own with great packaging, limited colors and yes marketing. Thanks for your comment. I'll read your post later today.
Sorry but that's just wrong. I wish you were right though! https://spinditty.com/industry/Who-is-Buying-the-Most-Music-Its-Not-Who-You-Think
I am right.
http://www.economist.com/blogs/prospero/2016/10/new-groove
Ok maybe specifically for vinyl you're correct but RIAA consumer trends report states differently and even the article you posted has a cryptic conclusion: "Whether the uptick will last is yet to be determined: 1-2-3-4 Go! has already noticed a plateau in sales this year. In the meantime, catering to demand is simply good business sense."
My post was about vinyl records, not all music sales, and yes the future is unknown. Thanks for your comments.
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