String Theory: Investing in High-End Violins

Facing volatile equity markets, investors often look to gold and silver. But an updated study of classical-instrument valuations by Brandeis economist Kathryn Graddy shows that violins may be among the most stable of investments. Graddy's data indicate that between 1850 and April of this year, the value of professional-quality instruments rose in real terms (i.e., after inflation) about 3% annually. High-end violins have appreciated at much higher rates — particularly rare instruments made by Italian masters like Stradivari, Amati and Guarneri del Gesù.