Investing in guns

[smokey30725]

I am seriously thinking of investing in guns as part of my savings for my kids. They usually get savings bonds at birthdays and Christmas but with our current track record economically, I think I might cash them out and invest in guns. These would be put back for a good 15 to 20 years. I thought about surplus C&R guns and my local gun store gets some nice classics now and then. Right now they have a mint stevens model 67 pump 410 and a Winchester 37 youth 410. Any thoughts? Anything you guys would purposely steer clear of?

 

[lowerunit411]

guns are a poor yielding investment as a rule. there are far better investments. Maybe not as "fun" but higher yields and more liquid.

 

[mdauben]

If you make your purchases with informed care, you can be fairly certian that you won't lose money on a gun purchase, but as a general rule there are certainly "investments" with better return on your money than guns.

 

[Coyote3855]

I wish I'd bought a truck load of Webleys, Smith/Colt 1917s, British Enfield rifles, etc. back in the 1960's when they were selling for under $20.

 

[SunnySlopes]

back in the 1960's

And you would have lost money when compared to traditional investments.

Guns are a very poor investment unless you happen upon a cash starved grieving widow who has no idea what she has in her husband's gun collection.

 

[lathedog]

Yeah, one of the gun mags had an article about 10 or 12 years ago showing that a savings account at 3% blew guns away for yield over the last 100 years.

However, guns are largely inflation proof, and always retain some value. Guns have immediate practical value as well.

The trick is knowing what to buy. If you are serious about the investment value, you should do some careful study before purchasing. Find a quality name brand firearm where the sale price is low compared to intrinsic value; plan on locking them away for a long time. Good quality mid-ranged guns will increase in value faster than cheap junk and will hold value better than high end premium collectibles in a bad economy.

My advice would be to get a case price on Mosin 91/30 rifles. They are flooding the market right now, and can be found for $70 to $80. We've seen how imported military bolt action rifles have performed after the glut supply on the market dries up. This has happened with even less desirable models like Carcanos.

Another possibility I would consider would be SIG 2022 or FNP in 9mm. Check out what they are going for in stores, and compare to similar guns from other makers. I think they are screaming deals right now. Buy new and lock them up in your safe.

Further advice: Stay away from low priced imports unless they are an unmodified military surplus weapon. Don't expect to see a quick turn around, and don't put more than 5% to 10% of your net worth into an investment like this.

 

[lowerunit411]

i think putting 10percent of your net worth in guns as an investment is just pure foolish. they are a poor investment

 

[smokey30725]

Thanks for the replies so far. And to be clear, this would be a long term supplement to the savings account and cds that I already have for them. I had thought the same thing about a case of mosin nagants. Other than a large purchase like that, it may be one gun purchase every year for the sole purpose of locking away for a decade or two.

 

[DesertFox]

I wouldn't want all my funds tied up in cash, gold, guns, stocks or anything. A diversity of financial instruments seems to be safest. And don't forget about ammo, which could be seen as equally important. All the guns in the world are useless without ammo to feed them.

I think of it more as "squirrelling away" than investing.

 

[Justin]

Unless you're investing in extremely rare and high-grade collectors firearms from, say, Purdy or Holland and Holland, guns are a terrible way to invest money.

AT BEST, they will track with inflation, and that's assuming you keep them in the box and completely unfired.

I'm not a financial advisor, but you'd be better off finding and investing the money in a mutual fund that's performed alright during the current turmoil, or if you don't want to invest in paper or stock, buy precious metals.

Guns are a terrible investment.

 

[liberty -r- death]

Investing in guns is not wise for future financial gains for the most part. Either you don't make very good returns or the gun is rare and gains so much value it eliminates many average buyers limiting your ability to sell in some cases.

However, I do think that guns will be far more valuable in the near future if things don't start to change with the way the government has been doing business. No matter what the media is feeding the public, there is a real chance for econimic collapse here because of what is happening abroad as well as what has been happening at home.

Give me guns and ammo over gold or paper any day of the week.

I invest heavily in lead, and I'm an alchemist. I can always convert lead into gold, food, or water.

 

[firesky101]

Money could be put in more lucrative places, no doubt. Of course there are exceptions to the rule, if only I had the ability and foresight to buy a trainload of SKS's in the 90's... Sigh.However, if you are looking for an excuse to put some more in the safe, go for it. You will get no argument from us.

 

[guyfromohio]

It's a very cool thing to do for them, but not for the purpose of financial gain. Remember that "worth" is dependent on what someone will pay.

 

[mgmorden]

I wish I'd bought a truck load of Webleys, Smith/Colt 1917s, British Enfield rifles, etc. back in the 1960's when they were selling for under $20.

Probably still not TOO bad a return, but $20 in 1960 is worth around $150 today (adjusted for inflation). Nothing under $150 would be considered profit on the sale. You can't just compare flat sales price across decades and have the numbers mean anything.

 

[smokey30725]

Thanks for the advice. I am going to do a lot more homework before buying anything.

 

[jcwit]

All depends what you're buying and how much you pay for it.

Bought a Winchester 52B a few years ago, it was in near new condition and complete as when it orginally was sold in 1948, only item missing was the cardboard box it came in. Even came with a Lyman TargetSpot. All for $50.00, I guess that was a good investment. This is only one of many of my "good" investments.

 

[Ryanxia]

It IS however a fantastic investment if we have an economical/financial meltdown.

If you have gold/silver and food and I have a gun, guess which one of our family's going to be eating

 

[firesky101]

This is a good discussion, let us just keep it highroad.

 

[oneounceload]

Want to make money for your kids? Get in on one of the tech world IPOs, or even stick with some good old standbys like Exxon, GE and the like - they generate growth and returns, something guns do not

 

[leadcounsel]

I think that as part of a portfolio they are a good investment, provided you are buying at below market value, which means you immediately capture value.

Buy used, quality guns.
Buy bulk ammo.

At worst you'll break even, keeping pace with inflation. Provided you don't buy new, you'll never LOSE money. That's not a terrible hedge.

Guns/ammo are very liquid.

Just be careful not to become a gun dealer - you need a license for that!

 

[JustinJ]

I think if one had enough info on availability of old milsurps they could do worse for an investment but the key is timing. Many rise quite rapidly in price as inventories dry up but good luck predicting when that is going to happen. If one were to try it i'd say an FFL and funds to buy wholesale would be a must to offset dealer fees. Of course you now have the additional costs of securing and insuring said investment. After the last election i'm thinking buying a ton of AR lowers and selling them in four year cycles may be an easy money maker.

 

[22-rimfire]

Any thoughts? Anything you guys would purposely steer clear of?

Buy what you like so that if you don't make any money down the road, at least you like 'em.

If you want to pursue this investment approach, buy Colts, S&W (pre-1990), and old Winchesters in as perfect condition as possible and don't shoot them. The problem with guns is they are not very liquid. You can't run short this month and expect to sell a gun quick at market prices to pay the rent in two weeks.

 

[nyrifleman]

I wouldn't buy guns as an investment. Since you're saying this is supplemental to other investments, I would buy physical gold. That way, if the market is bad and the other investments lose money, gold will be up.

Guns? Leave them an heirloom or two

 

[beatledog7]

If you buy a used gun and don't let it get trashed, it will likely hold its "value" until you are ready to sell it again (or trade it for something you need more). Breaking even is better than most investments will be able to manage over the next ten years, I'm thinking.

Ammo would seem to be a pretty good investment also, if you believe the economy will inevitably burst.

 

[hso]

A collection isn't a good investment unless you put a lot of effort into learning all the various details of the history of the firearms you're buying.