As a collector, we can sometimes invest real small fortunes in certain pieces! And when you add up all your purchases or possessions, the amount can be staggering!

So, is this reasonable?

Or rather, is it as unreasonable as it seems?

Maybe not... 

It could even be an investment, and prove to be a fruitful investment over time, but only under certain conditions.

In wealth management (my main job), wealth should in principle be spread over different asset classes, in order to balance the risks.

Cash, fixed-interest investments, equities, alternative funds, precious metals and commodities, and decorrelated assets.

An investment that is not directly linked to the financial markets (stocks, bonds, commodities, interest rates, foreign exchange, etc.) is called a decorrelated asset.

Knives are therefore decorrelated assets, since they are not listed on the stock exchange and their value is little, if not not not influenced by the state of the financial markets. The main characteristic of a decorrelated asset is that it fluctuates less than other asset classes, and its value increases more regularly. Hence the interest to invest part of one's wealth in them.

It should be noted that the price of new models may be affected by the price of raw materials (scarcity or abundance) as well as the exchange rates of the main currencies, depending on where they are produced and sold (Yuan, USD, EUR, CHF).

For collector's knives, these two elements (raw materials and exchange rates) are not taken into consideration.

1. Collecting as an investment

As in asset management, it is important to spread the risk. One should therefore be careful to vary the brands, the models, the periods, the types of knives (folding, fixed, machetes, accessories, books on the subject or on the brands, patches, specific objects, etc...) as well as the price levels (low, medium, high, stratospheric...).

In principle, all investments must be fungible, i.e. liquid, except for certain special types of investments (Hedge Funds, Private Equity, etc.).

Owning only high value knives is certainly flattering, but it can be problematic in case of resale.

Indeed, the higher the price (in absolute value), the fewer potential buyers there are. From an investment point of view (and therefore from a possible resale point of view), one should favour the diversity of models and thus of resale prices; it will be easier to sell a piece at 200.00 than at 1200.00.

2. Collector's knife: identification

A) The sentimental collector's knife

In everyone's mind, a collector's knife is probably first and foremost the one we received from our grandfather when we were young, a souvenir from our vacations, or a piece we received as a gift. However, if these pieces have not been produced by brands or craftsmen sought after by collectors, they may have no other value than the sentimental one we have for them.

B) The collector's knife as an investment

The investment knife must meet certain imperative criteria, or better, combine them:

- Vintage, what is it?

Apart from a very trendy and often overused name, the term "Vintage" refers to a period from the late 60's to the early 90's.

A "vintage" knife is therefore a model that was produced during this period, which can be described as the golden age of industrial cutlery.

Indeed, the brands used real craftsmen to produce the models with their name, and the materials were of very high quality. The Japanese productions from SEKI City are, even today, of an unequalled quality at the industrial level.

Example:

COLD STEEL MASTER TANTO SAN MAI

Produced since 1981 in Japan in VG1 San Mai steel (sandwich construction of 3 layers of steel), this now mythical model has allowed the young American brand to introduce the cult Japanese Tanto to the world!

- Collector, what is it?

A "collector" knife is a model that deserves to be collected, for one or more reasons: limited or numbered edition, commemorative edition, unique or rare model, model that belonged to a celebrity, etc...

Example :

CHRIS REEVE

Sebenza model, "Big Five" edition, Rhino version

Chris Reeve is undoubtedly one of the world's most influential contemporary cutlery makers. Born in South Africa, he began his career as a cutler in 1984 and moved to the USA in 1989 where he still works today alongside his wife.

His "Sebenza" model, created in 1987, is considered by some to be the best folding knife in the world, and has a huge following.

The 2018 "Big Five" edition refers to the majestic anim

Arguably one of the world's most influential contemporary knife makers, Chris Reeve was born in South Africa, where he began his career as a knife maker in 1984, then moved to the United States in 1989 where he still works today alongside his wife.

His "Sebenza" model, created in 1987, is considered by some to be the best folding knife in the world, and has a huge following.

The 2018 "Big Five" edition refers to the majestic animals of South Africa (lion, elephant, rhino, Cape buffalo, leopard).

- Vintage & Collector, what is it?

Some models are old and rare or limited; they therefore combine the two designations. Thus, and apart from any emotional consideration, it is logically towards these that it is advisable to turn, so that the collection is also an optimal investment.

Example:

SOG S1 5th Special Forces Group, Vietnam

Numbered edition of 1000 pieces

Produced during the 80's and 90's, the S1 is a faithful replica of a combat knife ordered and produced in Japan for an American special unit that operated during the Vietnam War.

This limited and numbered edition is even rarer than the "classic" S1.

3. How do you know what will increase in value over the years?

The elements to consider are, in our opinion and in this order of importance:

- The reputation of the brand or artisan.

The greater the reputation, the more collectors or potential buyers there are, and therefore the greater the demand. Demand drives prices up. Therefore, we prefer known brands.

- The choice of the model.

The emblematic models of a brand or a craftsman are the most sought after, because they are the best known. They will not necessarily be the most expensive, but probably the ones that will sell the most easily. This is a good point for the liquidity of the investment, in case of resale.

- Rarity.

The less there is in circulation, the more expensive it is. Obviously. This element must be combined with the choice of model. An iconic and rare model will be a preferred choice of collectors, so demand will be high.

Example: 

Al Mar Grunt II

A superb 80's combat fixture, rare and in good condition (original case and box)

Al Mar Grunt II Desert Storm

The same one, in a commemorative version for the Iraq war in 1991.

In comparable condition to the "normal" Grunt II, the Desert Storm is 30-40% more expensive.

- The condition of the coin.

Don't overlook this fact as it can have a considerable impact on the value of the item!

A rare piece in poor condition can even be very difficult to sell; sharp collectors looking for the Holy Grail are willing to pay top dollar for a knife in competition condition.

What do we mean by bad condition?

The tip and edge are critical; if the tip is damaged, or the edge resharpened, it can lower the price (very) significantly, depending on the degree of damage.

The original sheath is also crucial; a knife without a sheath will be worth much less. The sheath should be as new as possible, and if it contains a sharpening stone (SOG, AL MAR, Randall, for example) it should be present.

The original box and any accessories (paracord, leaflets, stickers, business cards, etc...) are important. Their absence can significantly impact the value, or even make the object almost unsaleable.

Example :

AL MAR 4008 SF SOG Black Micarta

Competition condition and complete 1350.00

Missing box -200.00

Missing case -450.00

Missing stone only -150.00

Point slightly damaged 1100.00

Point heavily damaged not interesting

Slightly retouched edge 1100.00

Cutting edge heavily retouched not interesting

Slight scratches 1100.00

Important scratches not interesting

- The history of the knife.

A model that belonged to a celebrity or has a special background (military, utility, etc...) can also develop an additional value. Commemorative models related to a specific event are also often the target of collectors (Wars, Jubilees, in memory of a personality, etc...).

- The age.

Unquestionably a cumulative factor of value which increases in a linear way with time.  

4. Which brands or craftsmen to choose ?

A collector's knife can be of industrial or artisanal origin.

A) Industrial production

The most famous and sought-after are essentially the following (non-exhaustive list):

- AL MAR (USA/Japan)

- BENCHMADE (USA)

- BUCK (USA)

- COLD STEEL (USA/Japan)

- GERBER (USA/Japan)

- HATTORI (Japan)

- KERSHAW (Japan)

- PUMA (Germany)

- RANDALL (USA)

- SOG (Japan/Taiwan)

- SPYDERCO (USA, Taiwan)

- ZERO TOLERANCE (USA) 

B) Craft production

Many craftsmen whose productions are highly sought after deserve to be included in an investment-oriented collection. It is complicated to draw up a list, as the number is so important! However, point 3 can be applied and allows for a good appreciation.

For more information on an investment in artisan knives, please contact us directly.

5. How to find collectible investment knives ?

Bathed in a family passion for knives and firearms since my early childhood, I always knew I would collect them, too.

I grew up with the sight of my Grandfather's carnotzet walls lined with Swiss knives, carabiners, bayonets and a host of other such things.

I always saw a knife in my Grandfathers and Father's pockets, in the glove compartment of the family car, in the hiking backpack or in the hallway pocket.

Curious by nature, since my childhood I have been interested in regional cutlery specialties, tirelessly bringing back sharp vacation souvenirs.

Later on, I started collecting industrial pieces from major brands, trying to add rare or limited editions.

In doing so, the arrival of the Internet (it's not so far away after all!) has helped a lot in being able to identify and appropriate pieces located abroad.

Progressively, I have developed a network with other collectors, amateurs or professionals, in different countries and on all continents.

Today, thanks to the power of communication, I work daily to extend my network, in Switzerland and internationally. Because what I like most of all is to discover a Sleeping Beauty; to find a piece in perfect condition, identical to the one that left the production site, waiting wisely in its original box for someone to take interest in it again!

And the finds are numerous, now.

This network allows Tellknives to be constantly and regularly supplied with investment collectibles, coming from the 4 corners of the world, and in absolute perfection, or almost.

The coins we obtain are, for the most part, highly sought-after models and we offer them in priority to our collector clients who have previously expressed the wish to be informed. These pieces are very rarely displayed online on the Tellknives website under the heading Collectors Corner (PUT HYPERLINK !!!) because they are sold out very quickly.

If you would also like to be among the customers we inform of our arrivals, please contact us.

You can also let us know if you are interested in a particular model or models and we will inform you as soon as we find one.

You can also give us a specific search mandate, and we will activate our network to respond as quickly as possible.