What Firearms Would You Buy As An Investment?

[Russ Jackson]

What do you think will be the items that will appreciate in value over the next five or ten years? Will 1911s go up or are there just to many being produced? Military stuff like a Mosin Nagant go up from $89? If you can resell them at $150 in five years thats a pretty good return. Ammunition might be a good investment especially in specific calibers. I would love to hear some input on this. What would you buy and what are you buying?...Russ

 

[Walkalong]

I buy guns to shoot, and ammo to shoot. I buy none of it as an "investment". It is a hobby.

 

[bri]

Firearms may hold their value better than some other material things, but an investment, they are not.

 

[SleazyRider]

If you mean an investment in one's happiness and well-being, then it's a great investment; at least it has been for me.

 

[Mike OTDP]

The orthodox view is that guns aren't a good investment. That being said, antiques NEVER lose value.

If I were advising people, I'd recommend:

1. CMP Garands - you can flip them for an instant $100 profit...but shouldn't. Hold on to them - the day the Garands dry up, they will double in value.

2. Anything from the First World War. Buy now, sell in the centennial in 2017.

 

[Russ Jackson]

Thank you thats what I am talking about Mike. I am sure alot of you feel that firearms and accessorys are a poor investment. But alot of people have made a great deal of money on them. What are the Colt single action army's or Winchester Levers of the future? No disrespect to those who feel that guns are a bad investment as your point is taken. I am more interrested as to why you think a particular weapon is not or would be....Russ

 

[Finprof]

Investment guns shouldn't be anything that you would actually shoot. They are in the same class as other antiques. The rare, fine, and unusual is where the appreciation will lie. Something owned by a famous western lawman or outlaw if bought well now will appreciate.
For example, in 1972 an engraved gold inlaid Sauer drilling built for Hermann Goerring sold for $6500. It was sold again in 1982 for $80,000. Two years ago at a Christies auction the hammer came down at $1,250,000.

If you buy a Nagant for $89 and sell it in 5 years for $150, you will have made $10 an hour for your time and 5% on your money.

Most of the guns that I bought in the early 1970s haven't even kept up with inflation. The exceptions were a couple of very rare Lugers - not the $39 specials you could buy from Kleins. Fortunately I only bought one of the "commemoratives" that turned out appreciating worse than anything.

 

[22-rimfire]

Russ, you can make money with firearms. There would be no FFL dealers if you couldn't.

My personal opinion is that if you buy firearms as an investment, buy high quality ones as they will likely always be in some demand. But if you buy the regular stuff, military guns such as Mosin Nagants, buy them in quantity and sell them. Buy some more. It doesn't matter what things cost as long as you can sell them at a profit and the quicker the better.... Watch the show "pickers" on history channel. That is how you make money.... buy and sell, buy and sell; not buy and sit on the items for 10 years as that is a bigger gamble if you take into account your time and what that money could have been doing during that 10-year period.

Colts tend to be good to hold onto, but you can tie up a lot of money that is not working elsewhere for you.

The next presidential election is in about two years (plus a few months). Things could be artificially inflated in price depending on the various platforms and other legislative activity at that time. It is a crap shoot to use this as a business model. But you certainly need to pay attention to it.

I tried buying and selling for about 10 years as it looked fun. I made a little money on some and lost money on others. Usually we're talking about making or loosing small amounts on each item. The net result is I probably broke even. That is not doing something as a business. In general, inflation causes used firearms to go up in price. The collector issue comes into play, but you have to be smart about where you park your money.

 

[Starter52]

Colts and Winchesters and Lugers, in that order.

 

[Old Fuff]

Well first of all I’ll point out that some traditional/conventional investments aren’t doing too well in today’s economic environment.

If one gets away from auctions such as Gunbroker and ArmsAmerica and scope out the auctions that cater to carriage trade collectors and investors they’ll discover that quality antique and early/middle 20th century firearms have been going one direction – up…

For example not long ago I was watching an auction where a relatively common 1920’s era Smith & Wesson Military & Police revolver was on the block. It was exceptional for only two reasons, first it was chambered in .32-20 Winchester (that is slightly harder to find then a more common .38 Special), and second, while not boxed it was in as perfect a condition as you’re likely to find. I have a similar piece that I bought about 5 years ago for $275. This one went for $1,200!

Another example was a little S&W top-break .38 Safety Hammerless made about the same time, and in about the same condition. I valued it at around $350 but someone else got it for $800.

Neither of these guns would have gotten a second glance from the “I only buy what I can shoot” crowd.

And I could go on and on… and on.

As labor and government-imposed overhead costs go up, manufacturing quality, hand-fitted and polished guns becomes impossible to do and keep prices at a reasonable level for the mass markets. Manufacturers have turned to modern technologies to keep prices down, but the increased use of polymer construction, punch press parts and CNC machining leaves one with a “practical” gun, but little else. Many people what something more, and within reason (and sometimes beyond reason) will pay for it.

On more then one occasion I have double and tripled my money a some gun found in the used counter of a retailer or even a pawn shop – in less then a year. Like any other investment, it’s a matter of knowing what you’re doing, and where the market is.

 

[CDR_Glock]

Firearms may hold their value better than some other material things, but an investment, they are not.

I have gathered only ones of historical significance or true rarity are worth it.

 

[nevermas]

well, i can bet you next year many 1911 manufacturers will release a limited edition/limited production 100 year anniversary 1911. now whether it is a true collectible will depend on the numbers produced as well as the company.

 

[Russ Jackson]

If you would have told me a Nylon 66 would sell for over $300 one day I would have said you were crazy. But who knows. What I think is that there are alot of people that have made more than there share of good buys and made a good return on there investvents here at this site and have some ideas and predictions on some of this stuff. I used the Nagant as an example only because they are cheap. When you fiigure you get a bayonette, couple of mags, sling and pouch for under a hundred bucks its pretty amazing. Heck in five years they might be selling for $200. If so its a great investment. I doubt it will ever be worth less that $89. But it is just an example. Are there any new guns or gun companies making stuff that is bound to go up?...Russ

 

[22-rimfire]

I think you could make far more money buying foreclosed houses than guns these days. Fix them up enough. Rent them out for a while and sell them. Be picky about who you rent to. One renter who tears the place up because you raised the rent $10 a month and making so much money... and you can forget about that house for a year. Same goes with drug activity especially methamphetamine manufacture and heavy use....

The thing about real estate is that you are usually dealing with banks and you get your money all at once. There is no "I'll pay you $100 a month" for the next 5-years stuff where your risk level skyrockets.

Colt's, Smith's, old Winchesters, are where I would buy if I were looking for collector stuff that I might make money over a period of time. You will win some and loose some. There are a lot of people who know what they are doing and they loose sometimes too.

I have Colts that I purchased like your Nylon 66 example years ago that were in the $300-$400 range and they are worth as much as $3000 now each. But, they are exceptional examples just like the Nylon 66. Saw a Nylon 34 (clip version) the other day for $200 but it had some rust on it. I passed. Warm up your crystal ball and take the plunge. It's a fun ride at times and very dissapointing other times. It certainly gives your buying and selling a theme if you are married and need to "justify" your "investments" to someone else. Unless you are a dealer, these sales are still tax free in terms of capital gains and possibly state taxes. They are technically not tax free..... that is another story.

 

[Sky]

Very few people have the luxury of 50 or 70 years of hind sight.

Young man buys a rifle...he likes it...buys ammo and all kinds of do-dads to out fit his rifle.
He figures he should get a pistol because all proper gun guys/gals own one.

Marriage comes along and spouse likes shooting so once again rifle and pistol soon to follow.

Kids! Kids! Gotta get a Safe! More guns to fill up safe! Ammo, Optics, and more do-dads!

BB guns, Pellet guns, paint ball stuff .22s along with original purchases with all kinds of do-dads makes the interior of the safe look satisfyingly crowded. Some BB guns are costing over $150 or much more.

Remember Dad trading straight across a German officers Ruger he brought back after playing with Patton for a cheap S&W .22 pistol. When asked why he just said, "The ammo cost to much for the Ruger"; didn't matter he never shot either he just wanted something to grab in the house. Great deal for the guy who got the Ruger and good for my dad he was happy.

Now if nothing gets stolen or broken and you sit on something for many years you might get double your money if you sell it. If I remember right if you put money in at 7.5% interest it will just about double in 15 years but you will be lucky after considering taxes and normal inflation to make 50% or less gain on your money. Hyper inflation you can forget it. A gun you paid $100 might sell for $200 or $200,000 in years to come it really does not matter your dollars buying power is still around $100 from date of original purchase.

Gasoline used to be (55years ago) $0.29 a gallon. With Federal taxes and inflation it's a tad bit more now.

New gun retail sales; many small dealers only make around $50 per gun yet they have several thousand dollars worth of inventory. Used guns they tend to make more.

Everyone has heard of a person buying something and doubling their money in short order. If you can purchase something and turn it for a profit quickly then you made money at that point of time. Remember land being sold for less than $200/acre which now sells for well over $4000 in a depressed everyone moving out township in west Texas. $200 was hard to come by way back when and $4000 ain't that easy today.

Gun Investments? Happiness and well being I agree. Money making opportunity on a quick sale; can be done. Long term investment iffier.

Wife and kids are in Mexico so maybe I just felt like writing?

 

[Sky]

Foot note...Remember P-51 Mustangs going for 1.2 million which originally sold military surplus for $450 in a crate after the war. Then aviation gas went to $6 a gallon (at cruise altitude you are burning somewhere around 45 gph...takes the fun out of it). Market crashed. The only reason I bring this up; What if some law is passed that makes our guns or ammo prohibitively expensive or just plain turn them in or major consequences to follow?

 

[ConstitutionCowboy]

If and when it hits the fan(and I'm convinced it will), guns, ammo(to include all its components), and food will be worth more than silver, gold, and platinum. So, for the short term - the next 5, 10, 15 or so years - guns will be a good investment. I'm mostly guessing, but still I'd be willing to bet that anything in .223 along with a hundred rounds of ammo would be worth a good horse and saddle.

If the low probability does prevail and it doesn't hit the fan, your guns and ammo will still be worth most of what you put into them if not the same or more, and you can still eat your stored food.

As for just an investment, I'd say guns are more like precious metals. "Investment" grade arms would hold their value. Darned few would increase in value. But if we go back to our TEOTWAWKI scenario, a Ruger P90 would be worth just as much as a Wilson Combat, or an Ed Brown, or a Kimber.

YMMV.

Woody

If you want security, buy a gun. If you want longevity, learn how to use it. If you want freedom, carry it. B.E.Wood

 

[Sky]

Hhahahheheheh bet this is gonna be a hot thread!

 

[bannockburn]

Russ Jackson

I think I would also add vintage S&W's and Browning's to Starter 52's list. As well as most black powder weapons from the Civil War period, leading up to and including the beginning of cartridge firearms here in the U.S.

A great deal will depend on what kind of price you would pay for a gun now, how well you're capitalized, and what market conditions will be like in the future. Also how knowledgable you are about a specific type of gun (as an investment), and how effective you will be at finding the "undiscovered treasures" out there.

Much like what Old Fuff wrote: know what you're getting into (research, appraisal, and costs), what you're doing once you do get started; and understand what the market is doing and where it's most likely headed.

 

[22-rimfire]

I don't believe that the fan will happen in the USA. But if you buy expensive investment grade collectables, how are you going to keep them from being stolen especially after you "bug out" and they are just sitting unattended in your house waiting for a thief to find them so he can shoot at bubba with them.

 

[TexasGunbie]

The gun prices are going up proportionally along side with the inflating market. Just like gas cost more and now grocery cost more too. If you want a gun to be an investment, then you need to buy in good condition at extreme low prices. Even a used Hi-Point cost more now because of inflation.

 

[taxiflyr]

limited numbers

of production and something that is disirable so that limits the choices. The only thing I may have may have got lucky with is Ohio Ordanance semiauto BAR that I bought when they first came out with a serial #57x from what i have seen I could almoust double my money already and it is getting very tempting as I get older

 

[SleazyRider]

An old business maxim: You make money when you buy.

 

[Shadow 7D]

few problems, it wasn't 50 years ago that gas went for a quarter, look at the early 80's, hell 10 years ago gas was about a 1$, yes, in less than a month, it went above 2, in less than 5 it was above 3, and now it stays above 2, should have bought gas...

on the other hand, If you want investments, play the market or buy gold coins, if you want something nice to pass to the kids or get sold for pennies on the dollar by your widow, buy a gun.

 

[leadcounsel]

I'm of the opinion that the house of card we built is gonna come toppling down in the near future... just need a gust of wind. That gust of wind could be a few coordinated WMD attacks, the depletion of oil/gas, or any number of things that we face...

When that happens, guns and ammo will be nearly as important as water and food. And not much else will be more important. Buy low (like now) and sell high or don't sell. When S hits the F, ensure you can arm your friends and family and neighbors because that'll be the key to survival...

Until then, I've rarely lost value in weapons by just buying good deals and holding on to them.

Meanwhile, I'll tell you what are NOT good investments - the things people obsess about. The newest electronic gadgets like plasma TVs, iphones, laptops, cars, rims for their cars, new stereos, ipods, fashion, clothing, women obsess about shoes, hair, nails, glamour, jewelry, the best appliances... etc. The things that you can buy used at 1/2 price are the things that are poor investments. Conversely, a new gun will only lose a small % of its value and if you buy used and are able to get a good price, that's a good investment because you'll never lose money and you can easily liquidate it.