An untrue from Steinway was Re: Do Steinways appreciate?

[David Renaud]

Wimblees@AOL.COM wrote:

> The Web site states: "Over the past 10 years, the retail value of a Steinway
> concert grand has appreciated nearly 200%."
> According the Ancot book, in 1990 a Steinway D had a retail value of $52,380.

expanding the numbers out to 40 years shows how silly it can look.

If average inflation  is 3% per year
or 142.6% per ten years compounding.
If Steinways increase at 200% per ten years,
in forty years a 52,380 piano will cost $202186 in
today's purchasing dollars, which is $838008 in 40 years.

At 200% per 10 years   in 10 years= $104760
                                    in 20 years= $209520
                                    in 30 years=$419040
                                    in 40 years=$838080

(in Canadian dollars +50% this translates with taxes added into
One Million Four Hundred and forty six thousand dollars)

If average inflation & incomes go up 3% per year average

52,380 value should become  in 10 years a   74,693 value
                                              20 years    106,513
                                              30 years    151,888
                                             40 years    216,592
                                            (nearly one quarter
                                            Steinways inferred price)
A discrepancy ratio of 1: 3.86.
Would people but Steinways today if they jacked the
price up 3.86 times current retail tomorrow.

So once again number speaks for themselves.

In forty years $838080 would be like
paying  $202186 in today's dollars for that
$52380 Stienway.

                               A skeptic

                               Dave Renaud
                               RPT
                               Canada