Investment in pistol. Is there such a thing?


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el Godfather
January 30, 2013, 03:14 PM
Dear THR:
Is there such a thing as investment in pistols? Pistols that you can buy and expect appreciation in value when you have done playing and want to move on t something else?

I cant seem to see it happening in production pistols. What don you guys think?

Thank you

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mgmorden
January 30, 2013, 03:23 PM
Not really. Some guns (pistols included) will appreciate in value some if they're discontinued - particularly if they're cherished and rare (the Colt Python for example), but for the most part they lose a bit of value when used.

The good thing though, is that assuming they stay in good shape, guns don't really depreceate like a car or something where the decline in value is continuous over time. A pistol or any other gun takes an immediate hit when it becomes used and then generally will maintain that value (and even go up with inflation) over time.

In that way, while they're not a good investment, they are fairly safe purchases. I have computer parts like TV capture cards and what were the top of the line video cards that I paid $300 when new and 10 years later you couldn't sell them for $10 each. Cars are similar. Pay $30,000 for a nice car and in 10 years it'll be worth $3000 tops. If I buy a $300 handgun 10 years later if I need the money I could probably get $225 out of it.

tarosean
January 30, 2013, 03:25 PM
Sure but not much produced in the last 50yrs..

BP Hunter
January 30, 2013, 03:35 PM
Unless you have some rare relic, these guns lose their value the minute it leaves the store. But I have to admit, they don't progressively lose their value in time versus a used car. But they are fairly easy to sell if you need money fast. Once my mom needed money desperately and I needed to help her. I sold 4 good handguns in less than 1 week - Glock 19, CZ75B, Stoeger Cougar in .40 and a SIg P220 carry. I took a loss of about 20-25% of its original price.

CPshooter
January 30, 2013, 03:35 PM
Absolutely. Even short term if you know what you are doing. A "friend" recently bought a H&K P7M10 for $2500 and sold it for $3500 very soon after. Not too bad, right? As far as NEW and CURRENT production, that's a different story, but even then it's possible if you know what to look for (i.e., special/limited editions).

ku4hx
January 30, 2013, 03:57 PM
Only if they appreciate in value over time and there is market.

JonnyGringo
January 30, 2013, 04:22 PM
The way I see it is, were I to place $1k and a $1k handgun next to one another in my safe, and get back to them five years later, which will have maintained the greater value? When you consider both present and future political/economic possibilities, I would (and will) spend it on the handgun.

browneu
January 30, 2013, 04:44 PM
They pretty much hold their value compared to other items like electronics, cars, tools. However, there are much better investments out there.



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Morrell
January 30, 2013, 06:33 PM
I encourage you to look up info on the NAA Ranger. That was a gun to invest in! Stupid me thought to wait and now I will be never have one

mljdeckard
January 30, 2013, 06:34 PM
I agree with #2. I wish I had an original Bren Ten right about now.

The thing about any item, it won't likely be collectible if it was INTENDED to be collectible at the time it was sold. It's items that become rare through a bizarre turn of events that become rare and valuable.

Jimfern
January 30, 2013, 06:53 PM
I can't speak for pistols, but I have noticed that the rifles I bought with my C&R license appear to have gone up in value since they sold out from the various importers. Of course past results are not a guarantee of future results and I haven't actually tried to sell any of mine.

I think the purchase of a used pistol might be a relatively good store of value if you also plan to use it, but otherwise it's probably as good, or bad, as individual stock picking.

Evil One
January 30, 2013, 07:12 PM
The only investments I make are in firearms.
Most people I know lost money in their 401K, I have yet to lose a penny in my 40Gun K.
Buy when you find a bargain, sell for a profit.
Plus, you get to shoot the guns.


Jim

Stringfellow
January 31, 2013, 02:07 AM
I think it is a matter of setting expectations.

If you consider a bank account an "investment", I suspect your return might be pretty similar after transaction costs. Joking aside, that is how I justify holding on to pistols--if I needed the cash, I will probably get about the same as I would letting it sit in savings (i.e., not much, but you are likely not to lose it).

shiftyer1
January 31, 2013, 02:29 AM
I've bought and sold quite a few firearms......i've always come out ahead. But i've never bought investment type guns, just users.

joeschmoe
January 31, 2013, 03:58 AM
Revolver prices seem to keep rising faster than other pistols.

forindooruseonly
January 31, 2013, 10:10 AM
How good are you at spotting trends? That's the question, and in doing so you'd better sell when the market is right. It's not something that's just going to appreciate at a steady rate. I can think of numerous guns that go through a period of being the "in" thing to have, and if you can predict these, you might do alright. If not, it'll hold value.

mdauben
January 31, 2013, 02:43 PM
Is there such a thing as investment in pistols? Pistols that you can buy and expect appreciation in value when you have done playing and want to move on t something else?
While guns tend to hold their value better than almost any other consumer product, significant appreciation in value is rare. If you want to use or collect guns, you probably won't lose a lot of money if you have to sell them later, but if you are looking to earn money you are better off with more common investment options.

Old Fuff
January 31, 2013, 03:30 PM
I have on occasion doubled my money in less then a month. A friend holds a record of doing better then that in 10 minutes... :what:

In all fairness none of the above were brand-new purchases.

The first mentioned was a World War Two, Walther P-38 that my friend spotted which had police rather then military markings. If he'd held it 'till today he would have made between 4 to 5 times what he bought it for.

One of those I mentioned (among many) was a Smith & Wesson .38 Military & Police revolver made in 1941 for the U.S. Navy. Again the markings made the difference, as the contract total was only for 3000 pieces.

To score, you have to do some research and keep your eyes open, but in the used gun department of retailers, pawn shops, auctions and gun shows; those who are knowledgeable can make money. Sometimes a lot of it.

Unless there is something unusual going on, buying new guns at retail prices will take a long time to turn a meaningful profit.

primalmu
January 31, 2013, 05:26 PM
I would imagine that a nice Nazi Luger in good condition would be a pretty safe investment.

mdauben
January 31, 2013, 06:00 PM
I would imagine that a nice Nazi Luger in good condition would be a pretty safe investment.

I would be supprised. A "nice Nazi Luger in good condition" is worth a lot of money already. if you were to buy one today for current market value I'm sure in 20 years it would be worth even more, but is the appreciation likely to outstrip what you could get from a good mutual fund? I doubt it.

joeschmoe
January 31, 2013, 06:02 PM
If they ever stop making Colt single actions, which could easily happen, then their value would spike. That would be my best guess for new production pistols that are likely to spike in value in our lifetimes.

Tolkachi Robotnik
January 31, 2013, 07:39 PM
There is a list of 157 guns that are more valuable right now. They might not hold that appreciation if a bill doesn't pass. I would guess a HiPoint carbine is worth more than what was paid for it, but if you do not like your specimen it might be a good time to turn it back to cash.

The popular heavily used pistols are likely to change little in value, especially if they remain on the market.

Quack
February 2, 2013, 09:54 AM
If you find the right gun at the right price, you can make a profit. Like a Wilson that I bought then sold a few years later, I was able to double my money (could've gotten more but needed a quick sell) and went from a semi-custom gun to a custom gun. I even had money left over after both transactions

I also have a Springfield Professional Operator that I had an offer of $3000 if I sell it, I bought that for $1500.

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45Frank
February 2, 2013, 11:01 AM
I've bought and sold quite a few firearms......i've always come out ahead. But i've never bought investment type guns, just users.
I agree I buy them as toys and have never lost money over years. I am now retooling so to speak my collection, selling guns I haven't used regularly over the years or had duplicates and buying what I want. I did pretty well. Just the last two weeks profited $150.00 on a Savage, $175.00 on a Ruger 6 shooter and a few others.
As an income over years I wouldn't count on it though.

PabloJ
February 2, 2013, 11:16 AM
Dear THR:
Is there such a thing as investment in pistols? Pistols that you can buy and expect appreciation in value when you have done playing and want to move on t something else?

I cant seem to see it happening in production pistols. What don you guys think?

Thank you
NO. You missed the boat when they were selling military 1911A1s for about $40/per gun. Now all original sample in very good shape goes for over $1500. The only blessing is the best of the lot from Remington?-Rand is less expensive because many were made.

Sometimes one can find real good deals where gun can be sold for more then it was bought for. Last year during what Americans call black friday? Joe was selling surplus H&K P7 police guns in very good shape for $450/gun. There is some potential for appreciation there. I could have had pick of the best but declined because I have enough money and didn't want to bother making more by selling gun(s).

sigarms228
February 2, 2013, 12:05 PM
With extremely rare and unpredictable exceptions buying pistol as an investment is a horrible idea. I buy them because I enjoy them. Most of what I have bought I could sell for at least what I paid for them if not more but that does not make them a good investment. Inflation may allow one to make a gain in a sale of a firearm over time but most investors goal is to have their investments beat inflation handily which I have been able to easily do over the decades.

IMO many rationalize their firearm purchases as investments, but for 99.9 percent of us that is a fantasy. It may help with the spouse however trying yo explain away that new purchase. ;)

Walt Sherrill
February 2, 2013, 12:36 PM
Re: Firearms as investments...

You CAN make money, but as a general rule, investing in guns is a crap shoot. If you find a great deal, and can turn it around quickly, do it. I've done that a number of times, and it's helped me buy other guns I really wanted.

But, if you buy a gun today, thinking that you'll make money over the long run, you're most likely going to be disappointed. "Collectibles" -- the ones that offer the best reward over time, don't always seem collectible when they first come out, and it's not just rarity that drives the price up. You have to be smart, lucky, or find something the seller doesn't appreciate.

Inflation is the booger that few people worry about when dealing with guns. The dollar you spent 10 years ago bought more than a dollar spent, today. Thanks to inflation, a gun that you bought for $500 in 2000 would have to sell for $666, today, to buy today what $500 would have bought back then. Example:

A S&W Model 29 Classic that sold for $591 (MSRP) in 1994 would have to sell for $915 in 2013, to buy something with the equivalent dollar value (after inflation).

In this transaction, it looks like you've made a $324 profit when you sell it for $951, but you've just broken even. If you sell it for the value shown in the Fjestad Blue Book ($600 in 100% condition), you've made a paper profit of $9, but actually lost $315 in buying power.

Not everybody buys a gun at the MSRP, so the examples above are not spot on, but it shows a side of the equation most people ignore. You CAN make money, but it'll take a bit of luck, a savvy buyer -- and a potential next buyer who "just has to have it."

We've had this discussion here in the past, and a couple of particularly savvy forum members cited their success stories. I'm not sure that most of us can be that successful. Most of us should just consider guns a LESS-expensive hobby -- hobby items that can be converted to ready cash, if you fall on hard times, and items that are much more valuable than most cars, golf clubs, fishing gear, or tennis equipment.

Here's a good inflation calculator: http://www.bls.gov/data/inflation_calculator.htm

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