Leica prices: historical assessment back in 1973

A 1973 Modern Photography ad fails to portend quite a bit about the ongoing, continual fall of the USD (I was 23 and remember this ad). - David Lyga

But do notice the inflation of that time - The M5 was nearly double the price of the M4 of just 4 years before that, but the M4 was only 20-some % higher than the M3 in 9 years.

Isn't inflation mostly a numbers game? I'm thinking that those cameras are actually cheaper today, and would have been dreadful as investments versus an S&P 500 index stock fund. Using this calculator:
https://dqydj.com/sp-500-periodic-reinvestment-calculator-dividends/
I see that had someone taken their $325 Leica M4 funds and invested in such a stock fund in 1973, today those funds might be worth over 17,000 USD minus brokerage fees.

4season said:

today those funds might be worth over 17,000 USD minus brokerage fees.

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So about $1.50 then?

I think we're in the Golden Age of collecting for the L39 Barnack Leicas. Prices are unbelievable low, for both user and collector grade cameras and lenses. The more popular Wetzlar lenses have already jumped out of my price range, and some of the Russian Industar and Jupiter copies have even tripled in price during the past year. The M Series film cameras, even the older double throw models, have already taken off, and quite a few seem to be priced above "user" prices for the average amateur. Just look at what's happened to Hasselblads over the last year, and what's happening right now with Mamiya 7s and Pentax 6x7s. I have a feeling that many of them will wind up as shelf queens rather than photographic machines, and that makes me a little sad.

Buy cameras to make photos, not to put on the shelf as investments.

Andy

US inflation was a factor of 5.7 from 1973 to 2018. Inflation was higher in the 1970s, but even from 1981 to 2018, a period of low inflation, inflation has compounded to a factor of 2.8. If we take that $325 used M4 or $627 new M5 in 1973 and multiply it by 5.7, we get $1850 and $3570 respectively. HIgh-end cameras were really expensive. I'm not exactly sure what the market prices are now, but a used M4 seems to go for around $1000 now, and I'm sure an M5 isn't anywhere near $3500. Cameras, like many collectible items, are lousy investments.

On the other hand, if one had bought the M4 in 1973 to use as a tool for image making, one would have gotten to use it for 45 years.

Well if I had bought a Gross box of Diana cameras at fifty cents each ($72) and they now sell for $35 on eBay.......that’s $5,040.

AndyH said:

I think we're in the Golden Age of collecting for the L39 Barnack Leicas. Prices are unbelievable low, for both user and collector grade cameras and lenses.
Andy

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I just picked up a really mint 1936 vintage IIIa, with it's original 50mm f2 Summar with a lovely case and some accessories for $425 off "that" action site. I agree now is the time to be picking these up. Obviously some of the rare version are $$$$ but to be able to buy a working, super clean version of an 80+ year old classic at these prices. And BTW I plan to use it as well as display it!

StepheKoontz said:

I just picked up a really mint 1936 vintage IIIa, with it's original 50mm f2 Summar with a lovely case and some accessories for $425 off "that" action site. I agree now is the time to be picking these up. Obviously some of the rare version are $$$$ but to be able to buy a working, super clean version of an 80+ year old classic at these prices. And BTW I plan to use it as well as display it!

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That's great! Cameras were made for photography, not decoration!

I just started acquiring Leica Barnack stuff this year. I have two IIIc series with the slow speeds, flash sync on one. Each was under $200, and one is in much better visual and mechanical condition, so I figure I'll use the other for parts if necessary. I've also purchased Russian 28, 35, and 50mm lenses and am on the prowl for the Leitz versions at bargain prices - unfortunately some bright bulb had to invent an adaptor to digital cameras, so the Leica glass has skyrocketed. I haven't given up hope, though.

I've got 85 and 135 Elmars, though, and the original Leitz multi-focal length viewfinder, all at bargain prices. And the whole outfit fits into a nifty Omicron custom Leica case. It's in excellent condition (after a little leather repair) and has lens and filter clips that were originally custom made to fit an outfit exactly like mine.

This gear is a pleasure to own and use, and I expect it will hold its value fairly well in the coming years. I know that every piece of Hasselblad gear I've acquired is selling for more than I purchased it for.

Andy