Considering its staying power, is Leica a good investment to buy and sell at a higher price in the future? In this article we will find out the historical returns for Leica to see if it makes sense to invest in.
What’s the investment class?
There’s multiple ways to invest, for example you can invest in bonds and in stocks. If you invest in Leica the asset class would fall under “collectibles”. This is not the only “collectible” in the world that you can put money in, Legos can fetch a high price, and so does older console games.
By default, collectibles are a risky asset class to invest in because you need to have it STORED and that is a liability. You would need to put it in storage so that it is in a pristine condition but doing so would require money, making it the opposite of a good investment.
But even if you don’t buy this and still wonder “Is Leica a good investment”, the historical returns aren’t great either.
Why Leica is not a good investment
Given the definition of investing being to buy something at a price in hopes to flip it in the future for a higher price, Leica simply is NOT a good investment.
Because no matter how you look at it, if you get a Leica, in 10 years it will be worth less. Don’t get me wrong, they do hold their value pretty well, you will need a few thousands to buy an old M6 but you are still going to lose money.
Case an point: In 1986 you could get an M6 for $1695. Right now you can get an M6 for $2000-3000. Sounds like double the money but a dollar in 1986 sure isn’t worth the same today. If you adjust for inflation the cost of an M6 in 1986 is $4311.
So you would have lost about $1000 if you invested in an M6. Don’t get me wrong, this is way better than any contemporary film cameras that you can find at bargain prices.
So you would have lost money on cameras. How about lenses?
In 1986 you could get a Noctilux 50mm f/1 for $1129.95
And a Elmarit 90mm f2.8 for $394.95
Adjusted for inflation…
The Noctilux price was $2,922.84, you can get it for $5000 used today
The 90mm was $1004 and you can get it for $600 used today
You probably just salivated at the almost doubling of the Noctilux price but when it comes to Leica lenses, there’s only a few that go up in value in time and you never know witch ones.
And there’s other factors at play too. When Leica released the f0.95 Noctilux, many looked at older models as a more affordable alternative, pushing the prices up. What if Leica never did?
So while the Leica brand won’t go up in value, what it has over all other cameras is that it holds it’s value pretty well. You can buy any old camera from the 60s and 90s for a few bucks, but for Leica you will still be able to flip it for a few dollars.
Leica as a photographer investment
So the answer to “is Leica a good investment” is simply NO. But even if Leica is not a good investment in terms of flipping potential, it great photographer’s investment. What I mean is, on the long run you end up saving money with Leica.
This is especially true with Leica lenses. Say you get a 35mm f2 Summicron for $3795. These are built like tanks and they are built to last, so you keep using it for years. In 10 years that is about $380 worth per year.
But to be honest Leicas are really lifetime lenses, I’ve got friends who’s still got and shoot their lenses from the 70s. In 50 years this would only be about $76 per year.
If you’ve used any other camera system you’ve probably spent more in lenses in 3-5 years than if you would have gotten a Leica.
But that’s just monetary. If you keep using the same lens over and over again, you essentially sync with it and it pays dividends in terms of images.
Plus every manufacturer has their Leica adapters so the bodies can come and go and you can still shoot the very same lens, making it a good investment as a photographer.
Conclusion
Is Leica a good investment? No. As a collectible it is perishable and prone to damage and historical returns aren’t positive, even if it holds its value way better than other cameras. But the returns you get on it as every year go by and the dividends it pays in terms of images captured make it pretty much a worthy photographer’s investment.