LS3/5A as a form of investment?

Check out the LS3/5A price trend..seems better than invest in GOLD

Info source: http://www.stereophile.com/content/bbc-ls35a-loudspeaker-bbc-ls35a-specifications

Wow..your share is getting up...

Try superimposing the value of the us dollar on the graph. it's the reverse curve. same goes with gold vs usd, but gold you can sell easily. Anybody wants to buy old speakers??

Not true, if u actually BOUGHT a pair of LS3/5a in 1977 for USD 400 supposedly for investment, and today u can sell it for USD1800... you've already LOST MONEY.

Time value of Money. USD 400 (in year 1977 value) is equivalent to USD 2300 (in year 2007 value) if the annual inflation rate is averaging around 6%.

400 x 1.06^(2007-1977) = 2300 .


Lets ask our resident LS3/5a expert... if he actually MADE any money from all his many many many many pairs of LS3/5a speakers or not.

wabun wrote:Check out the LS3/5A price trend..seems better than invest in GOLD

Info source: http://www.stereophile.com/content/bbc-ls35a-loudspeaker-bbc-ls35a-specifications

I dun think the guy will even consider selling any of his precious speakers. In fact, the last I talked to him, I believe he plans on buying some more.

so its an "emotional" or intangible investment as opposed to being a "financial" investment.

End of story.

Yes. It is also important to understand how far he has gone, and how much he has achieved with the LS3/5A, especially when one learns that he is now recognized by the original engineers who designed the speakers themselves. It is a tremendous achievement, especially when one considers how small and isolated a country Malaysia is, on the hi-fi 'map of the world'. Trust me, it is not something easy to achieve.

Ya......but think of the joy the speakers give you all these years, and on top of it, still give you a respectable return. Alot of people are investing in Rolex watches for the same reason.

Better invest inproperty for higher returns...

Actually I have heard of people who really did 'earn' from their components. E.g. I heard of a few fellas who sold their Sonus Faber Extremas for slightly higher price than what they bought it for. But personally for me, other than the logic of considering resale value as one of the (many other) parameters for choosing a hifi component, the top reasons should always be its sound quality and how much it enrichens our lives. It's tough to look at everything from the angle of 'investment', though of course this is my personal philosophy la.

You would probably break even if you purchase preowned, but if new, it is a definate loss. The Ls3/5a is a one hit wonder and I dont forsee another one coming in near future. This is not an investment, it should never be, and it will never be.

WongKN wrote:Actually I have heard of people who really did 'earn' from their components. E.g. I heard of a few fellas who sold their Sonus Faber Extremas for slightly higher price than what they bought it for. But personally for me, other than the logic of considering resale value as one of the (many other) parameters for choosing a hifi component, the top reasons should always be its sound quality and how much it enrichens our lives. It's tough to look at everything from the angle of 'investment', though of course this is my personal philosophy la.

Lets stick to tangible $$$ here: Just for the sake of illustration.
(ie. lets not put a price on "feel good" and other emotional factors for the moment. Just look at it purely from a monetary perspective. Lets leave emotional values for someone else to start another thread.)

If you factor-in "time value of money" (at the risk of sounding like a broken record), they probably didn't make more money, unless the price actually appreciated faster than the inflation rate.

Was the price appreciation of the SF Extrema greater than the typical national yearly inflation rate ? I highly doubt so... but i could be wrong. Lets see...

Price of gold on the other hand, did appreciate in value faster than typical inflation rates. So did most real estate and also blue-chip stocks. Just as an example.

Some examples of money-losing real estate purchases would be like:
If you bought a house or apartment worth RM200K back in 2000 , and today, its still only worth RM200K . Then thats a definite LOSS already. Because today's RM200K is a heck lot smaller than year 2000's RM200K (thanks to inflation). If the price appreciation in that house's price was pretty much the same as the national inflation rate, then you'd have just "broke even" only. But in investment terms, its still a "loss" , once you factor in opportunity-costs, but thats another topic altogether, perhaps for another thread also.

mugenfoo wrote:Not true, if u actually BOUGHT a pair of LS3/5a in 1977 for USD 400 supposedly for investment, and today u can sell it for USD1800... you've already LOST MONEY.

Time value of Money. USD 400 (in year 1977 value) is equivalent to USD 2300 (in year 2007 value) if the annual inflation rate is averaging around 6%.

400 x 1.06^(2007-1977) = 2300 .


Lets ask our resident LS3/5a expert... if he actually MADE any money from all his many many many many pairs of LS3/5a speakers or not.

wabun wrote:Check out the LS3/5A price trend..seems better than invest in GOLD

Info source: http://www.stereophile.com/content/bbc-ls35a-loudspeaker-bbc-ls35a-specifications

Aiyo Moogen,

Malaysia's inflation rate where got 6% one....... The most is oni 3% lah. Even though the prices of food, car and house have increased tremendously, the inflation rate in Malaysia still hoovers around 2-3% per annum.

Malaysia Bolih!!

A bowl of noodles costs about RM0.20 in 1977. US$400 would be quite significant during that year.

123_rocketman wrote:

Aiyo Moogen,

Malaysia's inflation rate where got 6% one....... The most is oni 3% lah. Even though the prices of food, car and house have increased tremendously, the inflation rate in Malaysia still hoovers around 2-3% per annum.

Malaysia Bolih!!

Thats what the GORMEN would want you to believe.... Don't tell me you got suckered into it hook-line & sinker ?

Memang Bolih !!

ryder wrote:A bowl of noodles costs about RM0.20 in 1977. US$400 would be quite significant during that year.

OK, lets calculate thats the price factor based on 20sen in 1977 ....

today, a similar bowl would be say RM5 in a PJ/KL coffeeshop.
Inflation rate works out to be 9.66% per annum over 34 years.


@123_rocketman, yes, do keep on dreaming....

Actually it's more correctly:

APA PUN BOLIH !!!

Hahahahaahha !!!

mugenfoo wrote:

ryder wrote:A bowl of noodles costs about RM0.20 in 1977. US$400 would be quite significant during that year.

OK, lets calculate thats the price factor based on 20sen in 1977 ....

today, a similar bowl would be say RM5 in a PJ/KL coffeeshop.
Inflation rate works out to be 9.66% per annum over 34 years.


@123_rocketman, yes, do keep on dreaming....

Moogen,

Yes, I dream of the good yesteryears when noodles cost oni 20 sen.

Anyway, it doesnt take a economics genius to tell us the actual inflation is much higher than the official figure.

Hmmmm, wonder whether we should include hifi equipment in the "Basket of Goods"

Dear Flend!

I only took a short breather for the CNY rush and you lads are already latching onto my territory and mis-behaving.. ! Ha..ha.. kidding here.

To be very frank, it is never my intention to buy LS3/5A as an investment, neither it was meant to get myself known for what I am pursuing in audio industry.

If I could plan so well ahead of my time, like what Mugen Foo said, I would buy GOLD. But again Mugen, I cannot afford gold bar at that time, which is really the only right form in buying gold; not the gold chain, pendant, ring and etc. because it will be slashed 70% at max of its value you pay for when you want to "pawn" it. Remember to also buy gold bar with proper seal that is unbroken to ensure the value is not chopped off!

To make myself famous? I would rather be rock singer (with my long hair), and then become a PKR member. Or married one like Carla Bruni.

Common guys, leave LS3/5A alone. It has inflated more than what can still be a sensible buy already.

Regards,
Jo Ki

Gold price was at USG850/oz in the year 1971, it went down to USG500-600+- in between.
Today, pure Gold is at USG1320/oz, 2 months ago it hit USG1400/oz.

Although LSS3/5A was selling at USG400, and today at USG1700.
No doubt the speaker price shoot up more than gold price, it just reflects the infllation rate, (but malaysia inflation is till remain at 2-4% for as long as AMONO is still in power) then if you say it is an good investment, I wonder how muc a 70s LS3/5A worth now.
BUT an oz of pure GOLD definitely worth USD1320.

you say it.

ERN2 wrote:Gold price was at USG850/oz in the year 1971, it went down to USG500-600+- in between.
Today, pure Gold is at USG1320/oz, 2 months ago it hit USG1400/oz.

Bud,

Not sure where u got the US850/oz figure in 1971 more likely USD40 /oz, coz remembered around mid eighties the gold mining company i was working with Downunder literally went downunder when the price went don below US380 oz (break even about USD400 oz). check out this page.
http://www.usagold.com/reference/prices/history.html

Anyway, from the prices of hifi equipments selling in Malaysia, a lot of people are already investing, i.e using USD RRP (not the actual dealer price) + sky high mark ups .

If you as user can get an LS3/5A as an investment, good on ya mate.. something you can enjoy too while actually 'listening' to it..

zeebee is correct.

Price of an oz. of gold in 1970 is approx USD38 (not 850 or any 3 digit figure).

http://www.wisegeek.com/what-is-the-historical-price-of-gold.htm

http://en.wikipedia.org/wiki/Gold_as_an_investment

So ... Jo Ki is also correct that GOLD would have been a far far better financial investment compared to "LS3/5a" speakers. (which I have previously illustrated to be a money losing venture nevertheless, against the average annual inflation rates).

Thanks to Zeebee and mugen
Sorry for wrongly quoted.
Ya in 1971 the gold was at USD35 accordingly to my chart. wrongly read the chart.

IMO investment in ls3/5a is investment that you can listen to them, imagine you buy those speakers in 1977 and sell it after in 2011 and still can make money regardless the inflation rate. and for the period of that time you was amaze with the sound it produce
cheers for the ls3/5a owners

Hi,

I agree with you Gloraglory, even though i am no ls3/5a fan.
IMHO it is not fair to compare real investment with hobbies
when you can make money regardless of how much it is consider
a bonus already.

Well, to put it in the right perspective, and to be a fair and square comparison, we must put LS3/5A in the category of "speakers", not the gold, the real property estate, mutual funds, bonds, etc., it is amazing how you can sell many times of what you actually paid for.

If I sell all my LS3/5A inventry today, I can sell quite a bit more than what I paid for. However, as caption says, is "LS3/5A as a form of investment?" Good? No. But what other speakers sells more than its original cost over times?

Jo Ki

I don't know what is hapenning now, many people are crazy for LS3/5A. for me it just a litter natural sounding speakers. perhaps some are take it as a god of speakers.

Why don just spend a money for a pair of speakers that are sult your personal tatse and burget, think of it for this price tag now many other today used speakers will maybe perfrom better. buy what you like don't heard what other tell it can make money or else hi fi are very personal prefrence.

Anyway don't take serious what Im say, it only my personal opinion.

jokiarch wrote:But what other speakers sells more than its original cost over times?

Jo Ki

JBL Hartsfield and Paragon?

jokiarch wrote:But what other speakers sells more than its original cost over times?

Jo Ki

Tannoy Monitor Gold Autograph
Bozak Concert Grands

I find it refreshing and comforting that there is still a small fraction of today's consumer who appreciates honesty and timelessness in design. To the mass market who constantly strive to own the latest in state of the art with aluminium cabinets, carbon fibre cones, ceramic and diamond domes, this small group of enthusiasts are probably like relics who wouldn't move on and keep up with the times.

But a part of me finds great appeal in designs that doesn't pretend to be what it isn't. Like a classic air cooled Carrera, whose headline figures pale to today's 2L cars, it rewards patience to seek its character between the lines.

I am not an LS3/5A admirer, but I can relate to and respect those who cherish them. Its those who view it as a business transaction above all else whom I find difficult to understand.

f8. wrote:

I am not an LS3/5A admirer, but I can relate to and respect those who cherish them. Its those who view it as a business transaction above all else whom I find difficult to understand.

Well said! I am with you.