Hi Tactical,
One of your opening statements:
"My personal opinion on this is I guess I would collect knives if I had the money to do so but I've had some serious life issues that have forced me to put that off for a bit."
This speaks volumes. If you had the money you would collect. But you don't so you only buy a knife you would use.
When I first started buying custom knives I was a Rifle Platoon Leader in the 101st Airborne. I was buying a knife to be used. Then a friend of mine took me to my first blade show in 1985....and it was all over.
For many custom knives go way beyond their intended use. Price and materials are only secondary. It is how it looks and how it feels in your hand that makes your heart race. Each individual has their own criteria.
Which explains why there are so many butt-ugly custom knives made and sold every year.
As for making money with custom knives. You are basing your opinion on youre experience. Dealers will usually do better than collectors. Mostly for two reasons. They have better knowledge of the product and they are willing to take a financial risk.
Most collectors of anything are usually not willing to do the "homework". As collectors they prefer to walk into a show and buy what they like. Nothing wrong with that.
However, this works against someone who is looking to make money on a knife.
Many who buy collectibles for investment purposes belive their passion and desire for a particular item is shared among all other collectors.
However, the truth is in the aftermarket....not the primary market. As it is in the aftermarket that you sell your collectibles. This is where all the intangibles come into play. Rarity, desireablity, etc.
Custom knives move in a circle. You can track patterns and trends. Unlike the stock market, with custom knives you can "time the market".
Suffice to say you have to be able to put aside your passion and buy knives that have the ability to give you a return on investment.
Which is why I adivse people to buy what they like.
Fact is, like any collectible there are only a small amount that you can use as an ivestment.
However, right now with the market, banks and CD's are paying a very small ROI.
However, if you were to buy a knife for $400 and you desired to make 5% (which is better than any money market account or CD). You would only have to sell that knife for $420.00
There are a lot of knives out there right now that you could make 5% on your money with little or no effort.
Enjoy your knives while you use them. You should print this out and re-read it 5 years from now....as you look over your "collection".