Guns as Investments

[gwtrikenut]

Just my opinion, but there are no guns, the average person, would buy as an investment. The average person buys guns to shoot, not bring home and hide in a safe. If one wishes to invest money to make money, for a sure fire way to increase his investment, then that person should open a savings account. Because there is no way to say this gun or that gun will increase in value. But will make money in a savings account, if that savings account is left alone, or added to. It will pay interest.
I purchased a couple Colt 1911's, 10 to 15 years ago. Haven't shot two of them in 10 years or so. But have looked at the selling price of new ones, and I would not be happy with the price I could get for them now, if purchased for an investment. That said, if you buy a gun because you like it, the selling price in a few years, really does not come into the mix.

[TLynnHughes]

I'm personally not looking to invest in any gun. I just started the thread because I was curious and this forum is a great place for information. Because I'm new at all of this, I'm not near savvy enough to even begin to think about guns as investments. I just noticed that there are some forum members with really nice collections and some of them have mentioned that they think of them as investments.

I also noticed that there are some familiar names popping up in the WTS section of the forum. They're selling some nice guns and most of them can turn them around in a day or so, making pretty much the going price for them and in some cases, making a tidy profit.

I made the guns/cars correlation because it's hard to have a discussion about cars without someone mentioning that it's great to buy a Honda because they hold their resale value. I wouldn't buy a Honda because I don't buy cars for their resale value. But I do listen when people talk about retaining value. I don't buy guns for investments, but I'm interested in hearing from the experts on this forum about which gun they happened to think would retain value and why some guns did and others did not.

T.

[MadMonkey]

I will say this, I'm much less likely to dip into my savings if all that money is sitting in my safe instead of an easily-accessed bank account

[TLynnHughes]

I will say this, I'm much less likely to dip into my savings if all that money is sitting in my safe instead of an easily-accessed bank account

Ok, I gotta go with you on that one.

[Oldgringo]

I've got the hots (passing phase ?) for .22's. Back around 1991, I bought a Ruger 77/22M at a gun show in Amarillo for $275 NIB. I no longer have that beautiful little rifle . I went to Budsguns.com to see about getting another. Today's price for a Ruger 77/22 is about TWICE what it was in 1991.

I'm afraid that price increase is inflation rather than appreciation. I still want another 77/22 and I'll get one...right after I get a job.

[gwtrikenut]

I have to agree. I think most guns have risen in price due to inflation. Not because they have become collectors pieces. The only gun i have had that really went up in value was the Ruger Bearcat. I purchased one back in the early 70's from Montgomery Wards. Yes, they used to sell pistols and rifles. I bought it for about $40.00. Then in the mid 70's i was laid off and with two children, had to sell my guns to live. Later I looked at one to replace the one I had to sell. They were then over $250.00. This all took place within a couple years. Needless to say, I didn't replace it.
But this happens not enough to really say one could, or should invest in guns as a money maker for retirement.

[drjoker]

gwtrikenut,

No, I didn't mean that guns are great investments for retirement. However, they are better stores of financial value than other items that we buy such as clothes, cars, and electronics. An old computer is obsolete and worth next to nothing. You'd have to pay someone to dispose of it in some states because it contains lead, an environmental pollutant. Old clothes are worth a tax credit if you donate them and if they don't have holes in them. Old cars with over 300,000 miles on them are worth maybe a couple hundred bucks in scrap metal.

Old guns, if you don't abuse them, will be worth 80% of their new value, adjusted for inflation. If you buy them used, they will be worth 100% of their purchased price, adjusted for inflation. Wholesale investment grade jewelry, art, land (such as hunting land) and guns are the only things that you may buy, use, and enjoy that will hold their value over time. If you play your cards right, you may even make a profit off these items.

Spending money on expensive electronics, designer clothes, and credit card debt is for dummies. Spending money on guns, jewelry, art, and land is for the discriminating connoisseur and investor.

Have fun with guns!


P.S. Wholesale investment grade jewelry would be a 24 karat gold necklace purchased at wholesale price. Crap jewelry is NOT an investment. The 14 karat gold necklace that you bought at the jewlery shop at the mall is crap jewelry that is worthless. You can only sell crap jewelry at the "junk gold" price while the 24 karat gold necklace can be sold at the "gold bullion" price. For some odd reason, you can only get 24 karat gold jewelry at ethnic jewelry stores (African or Asian, etc).

[TheArmedFarmer]

Good post, drjoker.

As for land, I would add farm land. You can buy good farm land and then lease it to others for either cattle or hay production. So the land would be bringing you an actual income, need absolutely no maintenance on your part, and holds its value perfectly over the years..

[NcongruNt]

Here are my thoughts on this:

I've never sold any of my guns. However, I also view them as liquid assets were the need to arise. Guns are pretty much always in demand, and you're nearly certain to find a buyer if you fall on hard times. Kept well, they tend to keep their value, and often times appreciate. You may or may not make a profit on selling your firearms, but you are almost certain to recover most of your money when selling them, and that's a considerably better deal than paying interest on credit cards, loans, or a (second) mortgage.

I personally won't buy a gun with the sole purpose of selling it off later for a profit. That sounds too much like arms dealing to me, and if you do it too much, the BATFE may take notice and charge you with dealing in firearms without an FFL. There are certainly gun collectors who purchase guns for a collection and never fire them, then sell them later. To me that's a different animal. I'd simply stay away from buying guns just to make money from the sale later.

Now, in hypotheticals, were I to purchase a firearm for profit later, a nearly surefire way to make money would be in NFA arms, specifically machine guns. Automatic weapons for civilian sale in the US are a limited commodity, and the pool of products available hasn't grown since the Reagan era. Coupling higher demand with no supply has driven prices through the roof. I'm sure many Class 3 FFL dealers have made a mint this way. Inexpensive (to manufacture) SMGs such as the Mac-10 or the Uzi go for several times what they were worth when they first hit the market.

[stroo]

If you are going to "invest" in guns, then like any other type of investment, you need to do you homework and learn as much about it as possible. In addition, guns are basically like any other collectible and knowing about and buying and selling a particular type of gun, its price levels, price history, etc is probably a better idea than just buying any type of gun that comes up. Do people who do the homework and become experts make money? Sure. Do most of us? No. But we have fun shooting the guns and hopefully don't lose much. Even that takes some homework to achieve though.

An added benefit is that you get to meet some very nice people.

[flynbenny]

Here are my thoughts on this:

I've never sold any of my guns. However, I also view them as liquid assets were the need to arise. Guns are pretty much always in demand, and you're nearly certain to find a buyer if you fall on hard times. Kept well, they tend to keep their value, and often times appreciate. You may or may not make a profit on selling your firearms, but you are almost certain to recover most of your money when selling them, and that's a considerably better deal than paying interest on credit cards, loans, or a (second) mortgage.

I personally won't buy a gun with the sole purpose of selling it off later for a profit. That sounds too much like arms dealing to me, and if you do it too much, the BATFE may take notice and charge you with dealing in firearms without an FFL. There are certainly gun collectors who purchase guns for a collection and never fire them, then sell them later. To me that's a different animal. I'd simply stay away from buying guns just to make money from the sale later.

Now, in hypotheticals, were I to purchase a firearm for profit later, a nearly surefire way to make money would be in NFA arms, specifically machine guns. Automatic weapons for civilian sale in the US are a limited commodity, and the pool of products available hasn't grown since the Reagan era. Coupling higher demand with no supply has driven prices through the roof. I'm sure many Class 3 FFL dealers have made a mint this way. Inexpensive (to manufacture) SMGs such as the Mac-10 or the Uzi go for several times what they were worth when they first hit the market.

[03Lightningrocks]

I only made a profit selling guns on six or eight occasions. All involved politics. I purchased several AK47's just before the Socialist party won the elections last year. I made double on every one of the cheap century arms rifles and made around 40-60% on the "collectible" Polytech imports. the cheap AK's cost me around 300-350 each and they went for an average of 750 each. The polytechs cost much more to begin with so the profit was less percentage. I sold a couple milled Polytechs....one went for 3500 and the other went for 2900. I wish I had dumped every one of my Polytechs as the prices have come off sharply over the past 6-8 months. I sold a SIG 556 rifle I paid 1400 for and got 2700 last December, a month after buying it. I bought an AR for 890 and it went for 1400. Now that the issue has settled down some the prices are all back in line again. I lived through one of these deals before and knew the prices of assualt weapons and ammo were about to go through the roof. i still have mucho ammo I paid half as much as it sells for now...in many different calibers. I need oduma out of office before I run out of bullets...

[TheArmedFarmer]

03Lightningrocks, I need to learn where you are finding your buyers!!

[Salty1]

If I was going to purchase firearms as an investment I would look for old S&W and Colt revolvers, they are out there and some for very good prices. The only other guns I would consider are very old muskets and revolutionary/civil war rifles, they will always be collectors items and be in demand to certain people most of who have money to spend. Modern day firearms are a gamble, anything that would be considered as part of a new AWB could bring a good return, bottom line is this will be speculation that the Obamaites would actually be able to get a new AWB passed, personally I doubt that the Dem's will commit political suicide again by even attempting to bring this up.

[03Lightningrocks]

03Lightningrocks, I need to learn where you are finding your buyers!!

Gun Broker...just list them and they will come. One must be patient when exploring the realm of high profit margins. I am actually happy they all came from Gun Broker. I would otherwise be concerned with going outside at night... . I have to admit to wondering what those fellers think now that the prices have dropped back down. Obama did it...not me.

The one I recently sold was listed for 3 months before selling. I have another Polytech side folder on there right now that has been listed for at least 4 months. Sooner or later someone will come along that is looking for that model and buy it. The side folders are hard to come by. I have a couple more I have not listed because the panic buying seems to have dried up. Gun Broker only charges one listing fee and a commission if the gun sells, leaving it listed costs nothing extra. Make sure you get paid before shipping the gun.

One more thing that helps to get premium prices. I own a business that takes credit cards. I am able to take credit cards which allows them to pay more than they can afford. It's the American way.