As collectors, we can sometimes invest real small fortunes in certain pieces! And when you add up all your purchases and possessions, the amount can be staggering!
So, is it really reasonable?
Or rather, is it as unreasonable as it seems?
Perhaps not...
It could even be an investment, and prove to be a fruitful one over time, but only under certain conditions.
In wealth management (my main profession), assets should in principle be spread across different asset classes, in order to balance risks.
Cash, fixed-rate investments, equities, alternative funds, precious metals and commodities, and decorrelated assets.
An investment that is not directly linked to the financial markets (equities, bonds, commodities, interest rates, foreign exchange, etc.) is said to be a decorrelated asset.
Knives are therefore decorrelated assets, since they are not listed on the stock exchange and their value is little, if at all, influenced by the state of the financial markets. The main characteristic of a decorrelated asset is less fluctuation than in other asset classes, and a more regular increase in value. That's why it's a good idea to invest part of your assets in them.
It should be noted that the price of new models can 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).
In the case of collector's knives, these two factors (raw materials and exchange rates) are not taken into consideration.
1. Collecting as an investment
As in asset management, you need to spread your risk. Care should therefore be taken to vary brands, models, eras, types of knife (folding, fixed, machetes, accessories, books on the subject or on the brands, patches, specific objects, etc.) as well as price levels (low, medium, high, stratospheric...).
In principle, all investments must be fungible, i.e. liquid, with the exception of certain special types of investment (hedge funds, private equity, etc.).
Owning only high-value knives is certainly flattering, but it can prove problematic in the event of resale.
The higher the price (in absolute terms), the fewer potential buyers there are. From the point of view of investment (and therefore possible resale), it's better to have a wide range of models, and therefore of resale prices; it's easier to sell a piece at 200.00 than at 1200.00.
2. Collector's knives: 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 a vacation, 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 value other than the sentimental one we attach to them.
B) The collector's knife as an investment
The investment knife must meet certain imperative criteria, or better still, combine them:
- What is vintage?
Apart from being a trendy and often overused term, we believe "Vintage" refers to a period from the late 60s to the early 90s.
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, brands used real craftsmen to produce models bearing their name, and materials were of the highest quality. Even today, Japanese products from SEKI City are of unrivalled industrial quality.
For example:
COLD STEEL MASTER TANTO SAN MAI
Produced as early as 1981 in Japan in VG1 San Mai steel (sandwich construction of 3 layers of steel), this now legendary model enabled the young American brand to introduce the world to the cult Japanese Tanto!
- What's a collector's knife?
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
Unquestionably one of the world's most influential contemporary knifemakers, Chris Reeve was born in South Africa, where he began his career as a knifemaker in 1984, before moving 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 animals of South Africa (lion, elephant, rhinoceros, Cape buffalo, leopard).
- What is Vintage & Collector?
Some models are vintage and rare or limited edition, so they combine both designations. So, quite apart from any emotional considerations, these are the logical ones to turn to, so that the collection is also an optimal investment.
For example:
SOG S1 5th Special Forces Group, Vietnam
Numbered edition of 1000 pieces
Produced in the 80s and 90s, the S1 is a faithful replica of a combat knife ordered and produced in Japan for an American special forces unit that operated during the Vietnam War.
This limited, 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 craftsman.
The greater the reputation, the more collectors or potential buyers there are, and therefore the greater the demand. Demand drives up prices. We therefore prefer well-known brands.
- Choice of model.
The emblematic models of a brand or craftsman are the most sought-after, because they are the best known. They won't necessarily be the most expensive, but they will probably be the easiest to sell. This is good for the liquidity of the investment, in the event 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 emblematic and rare model will be a preferred choice of collectors, so demand will be high.
For example:
Al Mar Grunt II
A superb, rare 80's combat fixer-upper in beautiful, complete condition (original case and box).
Al Mar Grunt II Desert Storm
The same, in a commemorative version for the 1991 Iraq War.
In comparable condition to the "normal" Grunt II, the Desert Storm is 30-40% more expensive.
- The condition of the piece.
Don't overlook this factor, as it can have a considerable impact on the item's value!
A rare piece in poor condition may even be very difficult to sell; discerning collectors in search of the Holy Grail are willing to pay top dollar, but for a knife in competition condition.
What is meant by poor condition?
The tip and cutting edge are crucial; if the tip is damaged, or the cutting edge resharpened, the price can drop (very) significantly, depending on the degree of damage.
The original sheath is also vital; a knife without its 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 value, or even render the item virtually unsaleable.
Example:
AL MAR 4008 SF SOG Black Micarta
Competition condition and complete 1350.00
Missing box : -200.-
Missing case : -450.-
Missing stone only : -150.00
Point slightly damaged : -250.-
Point badly damaged: not interesting!
Slightly retouched edge : -250.00
Heavily retouched edge: not interesting!
Minor scratches: -250
Major scratches: not interesting!
This is to illustrate the influence of the knife's condition on the price.
- The knife's history.
A model that belonged to a celebrity or has a special history (military, utility, etc.) can also develop an additional value. Commemorative models linked to a specific event are also often the target of collectors (wars, jubilees, in memory of a personality, etc.).
- Age.
Unquestionably a cumulative factor of value that increases linearly with time.
4. Which brands or craftsmen to choose?
An investment collector's knife can be of industrial or artisanal origin.
A) Industrial production
The best-known and most 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 products are highly sought-after deserve to feature in an investment-oriented collection. It's hard to list them all, there are so many to choose from! However, point 3 is applicable and provides a good basis for assessment.
For further information on investing in artisan knives, please do not hesitate to contact us directly.
5. How to find collectible investment knives?
Steeped in my family's passion for knives and firearms from an early age, I always knew that I too would collect them.
I grew up seeing the walls of my grandfather's carnotzet lined with Swiss knives, carabiners, bayonets and the like.
I've always seen a knife in my grandfather's and father's pockets, in the glove compartment of the family car, in the hiking backpack or in the hall pocket.
Curious by nature, since childhood I've been interested in regional cutlery specialties, tirelessly bringing back sharp vacation souvenirs.
Later, 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 that far away after all!) helped a great deal in being able to identify and appropriate pieces located abroad.
Gradually, I developed a network with other collectors, both amateur and professional, in different countries and on all continents.
Today, thanks to the power of modern communications, I work daily to expand my network, both in Switzerland and internationally. Because what I love most of all is discovering a Sleeping Beauty; finding a piece in perfect condition, identical to when it left the production site, waiting wisely in its original box for someone to take an interest in it again!
And there are plenty of such finds nowadays.
This network enables Tellknives to be constantly and regularly supplied with investment collectibles from the 4 corners of the world, in near-perfect condition.
The coins we obtain are, for the most part, highly sought-after models, and we offer them as a priority to our collector customers who have previously expressed a wish to be informed. These pieces are very rarely displayed online on the Tellknives website under the Collectors Corner heading, as they are quickly snapped up.
If you would also like to be one of the customers we inform of our new arrivals, please contact us.
You can also let us know if you're interested in a particular model, and we'll let you know as soon as we find one.
You can also give us a specific search mandate, and we'll activate our network to respond as quickly and efficiently as possible.
We look forward to hearing from you!
Matthias