A sober guide to price and value in the fine instrument market: condition, provenance, certificates, liquidity and uncertainty, without investment promises.
Fine violins, violas and cellos are sometimes described as assets or investments. Neither description is entirely wrong, but both can be misleading.
A fine instrument is a physical object in a small, specialist and relatively illiquid market. Its value depends on attribution, condition, quality, documentation and demand, and no two examples are exactly alike. For most buyers, particularly players, its financial value is also only part of the reason for owning it.
Understanding that market matters. This article explains what determines the price of a fine instrument, why good examples have historically held their value, what can undermine that value, and what buyers should establish before committing to a purchase.
It is worth beginning with a distinction.
Price is a fact. Value is an opinion.
Price is what an instrument changes hands for on a particular day, between particular parties. Market value is an estimate of what it could reasonably be expected to sell for under particular circumstances. Future value is unknowable.
Confusing the three is the source of much poor advice about fine instruments.
There is no formula. Several factors interact, and their importance changes according to the type and level of instrument.
The maker establishes the broad market in which an instrument sits, but the name on the label is not enough. Attribution has to be supported by the instrument itself and, where appropriate, by recognised expertise.
Even within the work of a single maker, values can vary considerably. A particularly fine or characteristic example may command substantially more than a less successful one.
Many makers have periods of their career that collectors and players particularly seek out. Instruments from those years can command more than earlier or later work, even where the difference in workmanship or sound is relatively small.
Model matters too. Certain forms, dimensions and stylistic characteristics become particularly associated with a maker. The market tends to reward work that is both good and recognisable.
Condition can have an enormous effect on value.
Cracks, patches, replaced edges, altered dimensions, neck and scroll work, varnish loss and previous restoration all need to be understood in context. Some repairs are common and have relatively little effect on an instrument's desirability. Others can materially alter its value.
Location matters as much as the existence of a repair. A well-repaired minor crack is very different from extensive damage in a structurally important area.
Condition also affects future ownership. An instrument that has required extensive intervention in the past may require more careful maintenance in the future.
This is why condition should never be reduced to descriptions such as excellent, good or restored. Buyers should understand exactly what has been done.
Two instruments by the same maker, from the same period and in comparable condition, can still perform very differently in the market.
Workmanship, materials, proportions, appearance and overall quality all matter. So does sound, particularly where the likely buyer is a professional player.
Sound is difficult to price objectively. It is personal, can change with setup and does not override attribution or condition. Nevertheless, an instrument that consistently appeals to good players is usually easier to sell than one that does not.
That distinction is important. Sound does not necessarily determine an instrument's underlying market value, but it can have a considerable effect on its saleability.
Good provenance does more than provide an interesting story. It can support attribution and establish continuity of ownership.
A documented association with an important player, collection, exhibition or publication may also increase desirability, particularly at the highest end of the market.
Not every famous name creates a premium, however. What matters is that the provenance is meaningful, documented and relevant to the instrument.
A certificate is an expert's written opinion on attribution. It is not a guarantee, and certificates are not interchangeable.
The significance of a certificate depends on who issued it, their expertise in that particular maker or school, when the opinion was given and whether it remains consistent with current scholarship.
An old certificate can be important evidence without necessarily being the final word. Knowledge develops, archives become available and opinions sometimes change.
For an important purchase, buyers should understand not simply whether an instrument has a certificate, but whose opinion they are relying upon.
The same instrument can produce different figures at auction, through a specialist dealer and in a private transaction.
An auction result reflects competition between bidders during a short sale window. A dealer's retail price includes considerably more than the acquisition cost of the instrument, including research, restoration, insurance, presentation, warranty, the cost of holding stock and the possibility that it may take a long time to find the right buyer.
A private transaction has a different risk and cost structure again.
None of these figures is automatically the instrument's "true value." They describe different transactions.
This distinction is especially important when comparing instruments.
A dealer's asking price is a retail figure.
An auction result is the outcome of one particular sale and needs to be considered together with buyer's premium, seller's costs, condition and the circumstances of that auction.
An insurance valuation is generally intended to establish an appropriate level of cover or replacement and should not be interpreted as the amount an owner could expect to receive if they sold the instrument.
The amount a seller ultimately receives is different again.
A £100,000 insurance valuation, a £100,000 dealer asking price and a £100,000 auction result therefore do not mean the same thing.
When comparing prices, first establish what each number actually represents.
There are good reasons why important instruments have historically shown considerable resilience over long periods.
The supply of work by significant deceased makers is finite. Instruments are lost and damaged, while exceptional examples become increasingly difficult to replace. At the same time, demand comes from several different groups, including musicians, collectors, foundations and institutions.
Fine instruments also have something unusual among collectible objects: they remain functional. A great violin may have been made two centuries ago and still be used professionally every day.
For established makers with sustained demand, these characteristics can support value over long periods.
But that is only half of the picture.
There is no central exchange and no guaranteed buyer.
An instrument sells when the right person wants that particular instrument at an acceptable price. At higher levels, that can take months or sometimes considerably longer.
Someone who must sell by a particular date is therefore in a very different position from someone who can wait for the appropriate buyer.
Selling through a dealer normally involves commission or margin. Auction sales involve their own costs, and buyers will take the auction house's premium into account when deciding how much to bid.
This creates a meaningful gap between the amount paid to acquire an instrument and the amount an owner could expect to receive from an immediate resale.
An instrument can therefore increase in market value while still producing a poor financial return once transaction costs are included.
Fine instruments are robust enough to have survived for centuries, but they are still made from wood.
Cracks occur. Varnish wears. Neck angles change. Accidents happen.
Good restoration can make an instrument completely suitable for professional use while still having an effect on its market value. This is one reason specialist insurance and appropriate maintenance are so important.
The market values an instrument according to what knowledgeable experts believe it to be.
Attributions occasionally change as scholarship develops. An instrument can be reassessed upwards as well as downwards.
The risk is greatest where a significant purchase rests on weak documentation or a single historical opinion that has not been reconsidered for many years.
Insurance, maintenance, restoration and sometimes secure storage all carry costs.
These may be entirely reasonable in the context of owning and using an important instrument, but they should not be ignored when considering financial performance.
Demand for particular makers, schools and periods changes over time.
Historical price behaviour can provide useful context, but it cannot tell us with certainty what future buyers will want or what they will be prepared to pay.
A fine instrument can hold its value well and still be a poor way to hold money once time, cost, liquidity and risk are taken into account.
For a musician, of course, there is another return entirely: the use of the instrument itself.
Our advice to clients is relatively simple.
Play the instrument, but also understand its structure.
For a significant purchase, obtain a written condition report and, where appropriate, have the instrument examined by a restorer with the necessary expertise.
Particular attention should be paid to major cracks and patches, previous alterations, the neck and scroll, replaced or restored areas and any work that might materially affect either stability or value.
The important question is not simply whether an instrument has been repaired. Almost every sufficiently old instrument has.
The question is what has been repaired, how well, and whether the price properly reflects it.
Ask what certificates and other documentation exist, who produced them and when.
For a particularly valuable instrument, establish whether the attribution has been reviewed by an appropriate contemporary authority.
A long ownership history or impressive-looking certificate should never substitute for proper due diligence.
Good instruments rarely have perfect comparables, but there should still be a rational basis for the asking price.
Look at comparable examples by the maker, taking account of date, quality, condition, provenance and venue. Auction results can be useful evidence, but they should not simply be treated as equivalent to retail prices.
A specialist dealer should be able to explain why an instrument is priced where it is.
Ask what would happen if your circumstances changed.
Would the dealer consider taking the instrument back in trade? Could they sell it on consignment? What costs would be involved? What sort of timeframe would be realistic?
This does not mean asking anyone to guarantee a future price. It means understanding the likely route back to market before you need it.
Fine instruments are generally poorly suited to short-term ownership.
If you are concerned that you may need to realise the money within months rather than years, that should influence both what you buy and how much you spend.
The strongest purchases tend to have the same characteristics: a good example of a recognised maker, appropriate condition, sound documentation, a defensible price and an owner who genuinely wants the instrument.
The weakest tend to begin with a famous name and work backwards.
For a player, there is another test that matters just as much. The instrument has to be one you actually want to play.
An instrument dealer can advise on instruments and their market. That does not make them a financial, legal or tax adviser.
Questions about tax treatment, VAT, import and export, company or trust ownership and the consequences of a future sale should be discussed with an appropriately qualified adviser.
Estate planning, succession and questions surrounding ownership on death belong with a solicitor or other suitable professional.
Insurance arrangements should be discussed with a specialist insurer or broker who understands fine musical instruments.
For a significant purchase, it is better to establish these points before committing rather than trying to resolve them afterwards.
We are always happy to provide the information those advisers may need, including condition reports, provenance, certification and relevant market context.
This article consolidates and replaces our earlier articles on buying a violin as an investment and the advantages and disadvantages of investing in fine instruments. Nothing in this article constitutes financial, legal or tax advice.
MyLuthier was started by two friends while they were studying at the Royal Academy of Music in London. The idea was to provide musicians with exceptional instruments at a price they can afford. We travelled Europe in search for the best contemporary makers and we’re proud of our selection and the partnerships we’ve developed.
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