Investing in guns

[AlaskaMan]

Buy good quality firearms and teach them to use them responsibly.

That way, when you want to present them with the firearms they'll have a good quality piece that they know how to use, and the memories of you teaching them. Maybe they'll pass it on to their kids.

That sounds like the good investment.

 

[JO JO BANG]

get it and shoot it, have fun

 

[nyrifleman]

Buy good quality firearms and teach them to use them responsibly.

That way, when you want to present them with the firearms they'll have a good quality piece that they know how to use, and the memories of you teaching them. Maybe they'll pass it on to their kids.

That sounds like the good investment.

+1 on that.

 

[Buck Kramer]

Whatever you invest in, know your product. A Browning A-5 made in Japan does not equal one made in Belgium. The only way guns can become close to a good investment is if you KNOW it's a good investment.

 

[leadcounsel]

I think it also hinges on your outlook of the country and the world prospects.

If you think that America is going to keep going along at the same pace and most things on the horizon are positive, I would expect guns to stay flat. Meaning that as long as you make sensible gun purchases (buy quality used guns) then you'll break even, maybe make a small profit. Also, niche historical guns may command a premium if you can buy something, learn the history, and there is antique or unique quality. Same with ammo.

However, if you are pessimistic about the future and you see a lot of civil unrest, high volatility in the markets (stocks, oil, precious metals), then guns and ammo will be among the most valueable items. It doesn't take much for the .gov to turn off the NICS checks and for shelves of ammo to run dry. As we've seen in NOLA, the LA Riots, and around the world, civil unrest can occur nearly instantly and as fast now as the speed of communication. With the REAL problems the US faces (debt, oil, poverty, unemployment, 10+ year war, etc.) one could say that we are in for a long strecth of bad times. We've seen what happens to guns/ammo prices when there is some concerns - during Obamascare or after 911, prices went north overnight and supplies dried up. Imagine a shortage of anything that is in the supply line of guns/ammo. Oil, gunpowder, primers, copper, you name it... Buy it while you can if you are pessimistic about the future.

+1 to teaching others the skills to shoot.

 

[Steel Horse Rider]

The tech crash and the last stock market crash both prove that paper investments can go from valuable to wastepaper in very short order. "Professional" advisors will usually tell you that anything they don't get a commission from is a "bad" investment, but think about things for a moment. Do things of substance have value in hard times? Yes. Is there a ready market for things people want during times of tribulation? Yes. Will you be able to sell those guns in 20 or 30 years and pay for their college? No. Will your kids likely appreciate having a good firearm in 20 or 30 years? Probably. I have a NIB late 1980's Marlin .22 mag bolt action in my safe for one of my grandkids in the future, I believe it will be appreciated.

 

[Seven High]

If you can locate genuine military 1911s that have not been altered in any way for a reasonable price you can generally make money on them in a few years. Or, they would make good heirlooms.

 

[leadcounsel]

What IS a good investment these days???

*Stocks crashed big time in the 2000s.... markets basically flat for a decade. Whole portfolios oblitererated in 2001, then again in 2008. Entire savings just gone. People planning to retire - forced back to work.
*House and property values in most areas peaked around 2003-5, then fell 50%.

*Precious metals soared. Gold is up 2.5 fold since 1999 - factoring in inflation.

What makes a good investment?

I think in many ways it's a tool/tools, hardware and the accompanying software. I know that I could sell/trade any of my guns in relatively short order for at least what I paid for them factoring in inflation. So they hold their value because I bought smartly.

 

[paintballdude902]

sure, guns are a great long long long term investment unless there is something drastic that happens with our gun rights. but they are a pretty crappy short term investment and also remember that collectibles are a terrible form of investment.

 

[TenRingGuns.com]

Excellent idea!

Our economy is sunk, believe me, the worst is yet to come. Prepare now.

Guns will hold their value, will put food on the table, will protect your life, and will always be in high demand.

For strict investment purposes though, I'd go with gold bullion; avoid coins as they have a higher cost.

Whatever you do, don't put money into the stock market, by bonds, or other worthless pieces of paper.

 

[Vaarok]

I'm actually in the midst of a reprioritization, and looking at a 50,000 Reichsmark note in my collection of interesting trinkets, I think an Investment Grade anything is foolish. Desirability hinges on needs-and-wants.

I'd recommend as diversified an investment portfolio as possible AND THEN prepay whatever you can, minimize debt, and try to avoid large savings of money that can be destroyed by inflation. Weatherproof your home, fill your heating tank. Buy a generator. But some extra canned goods. Get a more reliable car. Things of that nature.

Buying Turnbull Winchesters and bespoke shotguns is a hobby, not an investment, and lesser guns are just inflation plus changing market tastes- too capricious and marginal to rely upon.

 

[Psa1m144]

An investment in guns may not return financial gains, but it will be valuable in other ways, ways that I believe are more important than money. In an economic collapse, guns will be far more valuable than any of the other options. Of course, a father wants to provide financial stability as well in the preferable circumstances where there is no collapse. I say that you are on the right track for providing for your kids future. Split your investments into various areas and GUNS should be one of them.

 

[paradox998]

investment advice for firearms

With firearms are like any investment, you need to do your homework and understand exactly what you are buying. If you are going to invest in firearms pick an area or type of firearm and read. The internet is a great source. Then buy as high quality as you can afford. An all matching 1912 DWM Luger in 95% condition will appreciate a lot faster than one that is mis-matched. The market you want to be able to sell to in the future is the serious collector who appreciates your firearm. Better to buy 1 top quality piece than three ok pieces.

 

[klover]

Get a non-bias opinion here?

I'm surprised at how many level headed answers say guns are a poor investment.

Same as all other things I own, I put guns in the reference plane of "how would it be if I could never sell it or even come close to cashing it out?" In civil turmoil, any barter would probably not be possible, and you can only reasonably have a few guns to use for your defense/survival when needed. The saying goes:
"Priceless if you need one, worthless if you don't".

Investment and value are not exactly the same. Having had many years of machining experience, a shiny piece of metal in my hands is a piece of art. Another person would quickly want to return my offer to examine what I hold in high regard.

If you consider the fees on even an excellent value, you can still lose compared to real-estate, precious metal, etc. There are many guns I have owned that sky rocketed in value, and many more that have stayed the same or decreased.

Suppose all machine shops had to close their doors? Prices on all guns go up.
Suppose the government passes gun control: Prices go up on only the blackmarket, and down in the "legal market". But beyond the prices, who is willing to live on their knees?

You can also hunt food with these toys.

What is fun to you? Do you enjoy the bruising of a big bore rifle? A few of us here shoot guns instead of pool.

In my case, since I have no one to pass an inheritance, my toys get to be left right where they are; when I die with the most toys (I win).

 

[TennJed]

Poor investment, but one of the few hobbies that will hold value

 

[sedona]

Buy some guns and buy alot of ammo.I found a receipt last week that showed in 2005 i paid $3.88 for a 50 round box of 9mm blazer aluminum.The same box of ammo is $11.00 now and that for federal champions.If I hadn't stocked up back then i wouldn't be able to afford to shoot much today.Also buy some stocks with good dividends and even when the market is down you will still be getting a good return on your investment.

 

[whalerman]

I liked the post about the 3% return on a savings account. What we would do to get that now. It depends on what you buy. If the company goes out of business, that can help. But who knows what the future will hold as far as the value of firearms. Our government may make it so restrictive to transfer or own guns that their value may disappear. I believe that may be the hope of many.

 

[igotta40]

What has not yet been said, but needs consideration- a long term investment in firearms requires careful storage... To include the volume of space required... Also think about the need for safe, secure, moisture free, fire, flood etc. protection, insurance cost, and the effort, time and expense of periodic maintenance. Firearms don't respond well to neglect... Think museum type preservation... For example... A small collection of 19th century Colt SAA revolvers in pristine condition would require a considerable amount of research, capital outlay and maintenance, for a possible return of a small pecentage of inital cost, if a buyer could be located. Something to consider?

 

[leadcounsel]

guns are a poor yielding investment as a rule. there are far better investments.

a savings account at 3% blew guns away for yield over the last 100 years.

Here's what people need to understand: Past performance is not a guarantee of future performance. Times, they are a changin... 3% savings accounts are a very rare breed. Right now to get a guaranteed 3% you'd have to lock in with A LOT of money for a decade on a CD (with penalties for early withdrawal).

So, sure in the aggregate if you just look at the past 100 years anyone can look like a genius and say, this is what did better than that.

But if you were in, say, pre-war XYZ country with stockpiles of guns and ammo, you'd be sitting on a fortune, especially if your currency were immediatley worthless. I've seen some charts that showed the cost of loaves of bread skyrocketed in various nations pre-war. You'd need wheelbarrows full of cash to buy food for the day.

So, the point is, cold hard "cash" and the things we 'think' are valuable may turn out to be fools gold in the end.

It's a smart play to have actual durables like guns and ammo as a piece of your pie.

 

[lathedog]

leadcounsel - I get the feeling you read the first sentence of my post then moved on. I think my overall post agrees with your posts on this topic.

Also, several folks posted that guns are not good investments. I notice they do not say more or provide examples.

 

[22-rimfire]

Lathedog said...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.

All this is true. The problem is "intrinsic value" versus collector value. There are a multitude of approaches to "investing in guns" or accessories. One essentially is to focus on firearms that are collector grade and you believe will increase in value over the next 20 years at a rate that exceeds a savings account. The other is to buy less expensive firearms and ammunition that you believe can be sold for a profit at some future date at prices below collector stuff. There is appeal here as it is easier to sell a gun for $500 versus $2000 in most cases as there is a much larger potential buyer pool.

The key is to do things smartly and buy at prices that are already very competitive or on the low end of market. Gains from firearms can be hit or miss. This is why I suggest you buy stuff you like. I have guns that have appreciated 10x and others that are worth about the same after 10 years. Knowledge is the key to any investing.

Remember, one home fire can wipe out your entire collection (and the value) unless you buy insurance and then you need to factor in that cost as part of the equation. I still think you do better with other commodities. Buy oil futures, most would say that the price is going up....

 

[Justin]

Leadcounsel, if guns are such a great investment, perhaps you'd care to post information about all of the people who've managed to retire comfortably by investing in guns.

Furthermore, if you've got a strategy for investing in guns that has a reasonable chance of working, please, do educate the rest of us. How do you do your "investing?"

Do you take physical possession of these guns? If so, where do you store them, and, on average, for how long, before selling them? After all, if you want to make enough money to be able to retire, you're going to have to move a lot of iron, and the logistics of doing that, especially if you don't have an FFL, are something I'd be interested in hearing about.

Thanks.

 

[AlexanderA]

Love what you collect and collect what you love! If you study what you like, and put together a collection with a theme and with high-quality examples, the value will appreciate, perhaps a lot. It also helps if you know more about the items you're buying than the sellers do. I've been collecting U.S. military firearms since the 1960's and, frankly, I've made out like a bandit. (It didn't hurt, value-wise, that Congress froze the machine gun registry in 1986. That was like a windfall for me, even though I would have preferred that they hadn't done that.)

 

[StrawHat]

I believe a Colt Model P sold for about $20 when new in the 1880s. You could buy one with a $20 gold piece. How do they relate today?

 

[AlexanderA]

I might add that if you're looking at guns as an investment, don't shoot them! If they're new, keep them new in the box, and keep everything that came with them, including the box itself. If you're a shooter, keep your "shooting" guns separate from your "investment" guns. Depending on the gun, even a little bit of wear can diminish the investment value substantially. That includes holster wear, which is unavoidable if you carry them.