Knife collecting still making the cut

us-economyThis year’s been a doozie and we’ve still got a quarter to go. We’ll end up at over a hundred bank closings. Auto maker bailouts. Record high foreclosures. Unemployment near 10%.  Record business and personal bankruptcies. Makes your head spin doesn’t it? Not since the Great Depression has our country been hammered like it has this year.

CNJ reported successful knife makers reduced employee’s salaries or have been forced to adjust by laying off workers due to low knife sales. In some cases other business failures have impacted knife companies too- distributors, retailers and suppliers.

In regard to our knife organizations, the timing of this severe downturn couldn’t be worse, as most need the steady revenue while the leaderships conduct SWAT analysis on their organizations. The economy’s caused many collectors to drop club and association memberships.

economyThe dark-side of the recession is also having it’s toll on collectors in other areas too. More collectors are selling knives to help make ends meet. I spoke with another collector yesterday who is selling because he needs the cash.

One knife industry expert claims, incidentally, these collectors will become tomorrow’s dealers. His theory is this-  these individuals who do need to sell will hit the show circuit in order to liquidate. Then they will eventually need to buy more knives from other dealers in order to have additional inventory to sale. I think that is hog wash, personally. The guy I mentioned earlier who is selling off a major chunk of his collection isn’t going to set up at shows- he’s using eBay.

Even with the tough times, knife collecting is still making the cut.

The 2009 CNJ Knife Collector Survey taken earlier this year revealed almost half of the 1300 collectors surveyed stated their participation in the hobby hasn’t been affected by the recession.

Click to enlarge

2009 Knife Collector Survey Q#6 II

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There is an additional bright-side to all this too- Record low interest rates and tremendous investment buying opportunities. Untold billions will be made as a result of this recession. Cash rich companies and individuals will make a fortune buying in a down market, but when we do come out of this-  the business landscape will look all together different.

Don’t be surprised if there are some knife company mergers and buy-outs before this is all said and done too.

Photo credits: http://www.uml.edu; http://www.blogtrepreneur.com

$9 Trillion Pulled From Stock Market

Don’t let the talk of the recession put a cloud over our head regarding the future of knife collecting or declining knife values.

dowjonesConsider this- E*Trade reports at the end of 2008, cash in money markets and bank accounts reached right at $9 Trillion. You read that right, that’s TRILLION with a “T.”

Just think of all those investors who are now looking for another place to park some of those dollars. Plus, though I am not an economist- just a knife collector, we know we will have tremendous inflationary pressure as we begin to come out of this slump, knives can be a tremendous hedge against inflation.

On a related note- The results of the 2009 Knife Community Survey confirm, close to 50% of knife collectors are new collectors- close to 30% have only collected less than 2 years. I’m preparing the report on the survey now, but you will also be surprised to learn, close to 50% of the collectors are under 25 years old. These two stats provide a very healthy future for our wonderful hobby and it flies in the face of the belief that the vast majority of collectors are 50+ years old- that simply isn’t true.

Our hobby is very alive and well, I’m glad to report. Now all we need to do is tap a few hundredths of a point of the $9 Trillion and funnel it our way.

Published in: on April 22, 2009 at 9:31 am  Leave a Comment  
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