tonykayInitially,
I said that buying equipment was analogous to the stock market.
"Analogous" simply means that something is like, or similar to,
something else-not precisely the same. My comment was first taken out of
context, and then blown out of proportion. The analogy wasn't that
difficult to understand! I think everyone here understood the analogy. What was confounding was your misstatement of fact regarding the functioning of major stock exchanges, and then your denial that you'd been so in error. And here you are again, still misrepresenting your profound error about investment liquidity:
The stock exchanges don’t "ensure" liquidity, they simply facilitate it (very much like Audiogon).
As I hope you do now understand, the major stock exchanges absolutely do ensure liquidity - that's their primary function. That's unlike Audiogon, where used equipment can sit unsold for months. |
lloydc"investing" in
a child's future is not meant literally, It has some of the
characteristics of investing, but not all. It's an analogy. The parent
doesn't expect to profit from it, it's a gift Agreed! And of course, in a sense, audio is an investment, because the ROI is the enjoyment of the music. And - perhaps this is the best part - it's a benefit that isn't yet subject to tax. That's sweeeet!
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When buying audio, I buy what I want and don't really consider resale value. However, almost everything I buy is rather high performance, so it tends to hold value relatively well. I tend to hold onto gear for a long time - sometimes decades even.
I disagree with tonykay that it's like the stock market. The major stock exchanges exist in large part to ensure liquidity; there is no equivalent in audio. Moreover, audio equipment is not an investment, it's an expense.
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tonykayThe stock exchanges don’t "ensure" liquidity, they simply
facilitate it (very much like Audiogon).
Whether audio equipment is an investment or an expense depends on your perspective.
Sorry, but you're completely mistaken. The major stock exchanges most certainly do ensure liquidity - that's the specific function of the "market makers" who work the trading floors. A major stock exchange has nothing in common with the role Audiogon plays.
As for audio equipment being an investment, it isn't in the traditional sense. Certainly, one can argue that the enjoyment of music is the "yield on investment" from audio purchases, and I wouldn't argue with that. But my 401K doesn't include any audio equipment, and I'd wager yours doesn't, either. And the return on my retirement funds - which is positive - surpasses by far the financial return on my audio equipment - which is negative.
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tonykayMaybe
you just bought the wrong equipment, or paid too much for the equipment
you bought. You probably should have considered the resale potential
before purchasing. Sorry, but you don't know what you're talking about. Almost all of my equipment has had outstanding resale value. That's in spite of the fact that I don't consider resale value when I purchase equipment.
If you don't see the similarity between the
buying and selling of securities (stock exchange), and the buying and
selling of audio equipment (Audiogon), then we have nothing more to talk
about You're obviously confused. On a major exchange such as the NYSE, there is buyer each day for every seller of every single share of stock. Without exception. That's because it is someone's role on the exchange - for each stock - to ensure liquidity. They are called "market makers." On Audiogon, a piece of equipment can go months without a buyer. That's because it is not Audiogon's role to ensure liquidity.
Audio equipment (for me) is still an investment, maybe not in the "traditional sense," but an investment nonetheless.
No problem - go ahead and fill up your 401K and IRAs with audio gear. That's not my strategy for investments. |
tonykaIf you backpedal some, you’ll find that I never claimed that Audiogon ensures liquidity, only facilitates it Here's what you actually wrote that was so erroneous:
The stock exchanges don’t "ensure" liquidity, they simply
facilitate it (very much like Audiogon).
Let's please move on now. |
tonykayLook, this is a "forum." In a forum, you’re free to express your opinion. Of course! However, when misstatements of facts are made, contributors should not be surprised if they are corrected, such as when you stated:
The stock exchanges don’t "ensure" liquidity, they simply
facilitate it
So as you also stated:
If you don’t like what you’ve read...just get over it!
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