I don't think he's crazy. Late 70's Fenders are currently enjoying high prices despite the fact that they are generally not very good. The problem was that by then Fender had got very lax, and most of their cutting equipment was in varying states, resulting in dreadful quality control. It is true that there are good guitars from the era, but there was certainly no guarantee they would be any use - although I do admit it's possible that this one is. Even so, they weren't 'lookers' in that silver finish with the 'Silver anniversary' logo written in what looked like Letraset (remember that?) on the horn.
The 70's was the decade when people started scuttling for the old ones because of the state of the new ones and the cult of old Fenders was born. Nonetheless, three years later, the first JV Squiers came back from Japan where Fender had sent the plans to get some cheapies made - and they were loads better than the USA ones. Many at Fender were duly sacked. These first Squiers are worth about two grand now (with the big Fender logo) and are some of the best Fenders money can buy. American 'Guitarist' magazine recommended recently that if you couldn't afford a Strat made before 1965 then the next best thing was a JV Squier.
So my two-penneth worth is, that he'll probably get about 2-3 grand for selling it now and although they may well continue to rise in value - they may drop. In my personal opinion he can probably buy himself a much nicer guitar for the money he gets for that.
