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Excuse my ignorance but what is the difference between an expensive flute and a cheap one? I would have thought that once you get the positioning of the holes and levers correct (which even a cheap one must do, otherwise it's not actually a flute), it's really just a metal pipe.
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There are many things to address with the quality of a flute.
1. Handmade?
Handmade flutes are superior to machine made ones. Machine made flutes will always have some sort of imperfection, and will have less 'character than handmade ones. The body of my flute is handmade, while the headjoint is professional quality and hand made. I'll probably just upgrade my flutes body next.
2. Headjoints
Headjoints make the largest difference in flutes. The shape, size and curve of the headjoint all make a huge difference. Machine made headjoints are horribly generic, while hand-cut ones are all unique. My headjoint will be
slightly different to another one of the same model. Good headjoints are hard to cut.
3. Material (All dollar figures are in AUD, unless specified. All prices can vary largely; this is in my experience.)
Nickel silver (silver plated tin) flutes start at the very crappy $50 and go to $1000. As you add more silver to the flute, the price goes up.
Silver on only the lip-plate: +$50-$100 (depends on maker, largely)
Silver headjoint is reasonably more, at closer to $1500-$3000 (whole flute, depending on make, thickness and purity of silver)
Silver body, headjoind but
not keywork is $1500-? (same as above)
Solid silver the whole way through, including keys, double the price of the Silver body and headjoint version.
Gold is A LOT (no pun intended

) more, depending on the different carats. I've played a solid 18c flute worth $99,000, and a
better different flute made from 14c gold worth $45,000-ish.
Platinum is worth more still, and I'd love to own a platinum headjoint one day. My headjoint in platinum is $7,500 USD without a flute.
4.Age
http://www.andrewsterman.com/teachin...enchflutes.asp
Explains everything somewhere in the middle