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Diversifying Investments - Surplus Ammo?

Discussion in 'General Gun Discussions' started by Bob01, Apr 23, 2012.

  1. Bob01

    Bob01 Well-Known Member

    Greetings All,

    I was thinking about diversifying my investments today. One thought came into my head - I should've bought 7.62x25 ammo when it was around....now even after the craze - its still about 3x what it costed 18 months ago.

    Proceeding to the next step - surplus 5.45x39 and 7.62x54r ammo is still plentiful and affordable. What would be your opinions on buying spam cans of the stuff and putting it in a closet somewhere? Eventually I think I' may get an AK74 and Mosin - but for now I don't have either...

    As for the cons of collecting these ammo types, I see:
    For the 5.45x39:
    Really only the AK74 uses this ammo and some Ar uppers...not quite the same numbers as Tokarevs and PPSHs?
    Current Production ammo is only 30% more than the surplus (Looking at Wolf)

    Mosins and Veprs only for the most part?
    Most folks just like shooting 10-12 before calling it a day?

  2. BerettaBob

    BerettaBob Well-Known Member

    If I were you I'd buy up as much 7.62x54r that I could. And a mosin. :)
  3. medalguy

    medalguy Well-Known Member

    I just bought a ton of 7.62 x 54 light ball. I think it's a very good investment, not for resale, but for my own use. I have a few years under my belt (and a few sandwiches) but I can recall .30-06 ammo for 4 cents a round, and .303 British for about the same, and .50 BMG for .15 a round, but that was a few years ago. I wish I had bought a whole bunch more of all of those back them.

    Buy and hold for resale later? Maybe, but you have to store it somewhere that will keep it dry and safe, and that will probably cost something as well.
  4. il_10

    il_10 Well-Known Member

    It's 30% higher than surplus likely in part because it has surplus to compete with.
    Wolf .30-06 is between CMP and Iranian surplus in price, the spread is 4 cents, .49-.53 per round, which is considerably more than a 30% increase than what it was when there were large stores of surplus around. It's not a terrible investment, but not a great one when compared to some others. I'd put ammo on the same playing field as guns themselves, even gold or silver: a GREAT hedge against inflation and economic collapse, but not great compared to high yield investments that appreciate faster than inflation. If the economy collapses, those will be gone; if it doesn't, they'd have made you more money than guns, ammo, gold, or silver.

    The thing about surplus is that you have that 30% gap that is due to scarcity rather than inflation. The ammo will bump up that 30, then it will all go up a bit more due to lack of surplus, and then it'll level off and adjust only to inflation. What the difference between the 30% gap now and the endgame will be is tough to say, but it's a 30% gimme at least. Holding off inflation ain't bad, and an extra free 30% is gravy.
  5. Wildbillz

    Wildbillz Well-Known Member

    If you time it right and stack the right stuff. It could pay off big time. On the down side, it takes a lot of room to store much of it. Your allways at the mercy of the market if all of a sudden there is a flood of that caliber that hits your screwed for a while.

    If it were me, I would go with calibers that you shoot all ready. Surpluss comes in and go's. Some of it once its gone its gone for good. Get it while you can and plan accordingly.

  6. kozak6

    kozak6 Well-Known Member

    It's just like any other antique or collectible you have store and keep cool and dry.

    Commercial and milsurp 5.45 are close enough in price that it probably isn't worthwhile.

    Milsurp 7.62x54R is significantly cheaper than the commercial stuff, but it might remain available long enough that storing it would be a waste of space. It's hard to say.

    Also, another factor to keep in mind is Reelection Panic. You might be able to turn a few bucks if you stock up on common calibers and primers now so you can profiteer later.
  7. browningguy

    browningguy Well-Known Member

    Ammunition is not an investment.
  8. 303tom

    303tom member

    Investment in my life, if push comes to shove....................
  9. Buck Kramer

    Buck Kramer Well-Known Member

    I agree here, I'm not looking to make a buck, but having several crates of ammo helps me sleep a little better.
  10. FuzzyBunny

    FuzzyBunny Well-Known Member

    Originally Posted by browningguy
    Ammunition is not an investment.

    Wish I had bought a few pallets of 7.62x39 when it was going for $45 per 1,000 for big orders like that.

    I remember going with my dad to the flea market in the 60s as a kid and seeing piles of surplus M1 carbines for $10 or $15 if the wood was perfect. But that would have been 15 silver dollars or $450 in todays market.
  11. BSA1

    BSA1 Well-Known Member

    I would rather buy calibers I use now instead of calibers I might use someday.
  12. Telekinesis

    Telekinesis Well-Known Member

    I would agree with you if you plan on using the ammo for defense, but that's not what we're really talking about here. The OP doesn't even have a gun that fires these calibers. He's just asking about investment in the same way you'd invest in stocks and bonds.

    He is essentially saying "if I just sit on this ammo, will it be a worthwhile investment when compared to other options" and that answer is generally no.
  13. Murphy4570

    Murphy4570 Well-Known Member

    Only buy ammo for guns you already own.

    Having 2-4 spam cans of 7.62x54R for a Mosin is a goodly amount. Would take a long while to shoot all that off.
  14. browningguy

    browningguy Well-Known Member

    Having thousands of rounds of ammo for a gun you don't own is no way an investment in your life. Kind of like my wife talking about "investing" in fine china and crystal, or "investing" in new curtains. It's just another way to spend money.

    I probably have more ammo than most stored, about 8,000 rounds of .223, 9mm and .40 (and lesser amounts of .32ACP,.380 and various hunting ammo), not to mention a few thousand rounds of .22lr. But I don't ty to convince myself it's any kind of investment, I'm giving up potential investment profits to save money on inflation. If you are going to invest I suggest looking at Chevron, Microsoft, Intel, GE or similar companies. They all pay a decent dividend and I am up a substantial amount on them over the past couple of years.
  15. ny32182

    ny32182 Well-Known Member

    I would say ammo is potentially a much better "investment" than guns, but it fails for a couple reasons:

    1) You have to speculate on what surplus caliber is going to spike in value in the next few years... hindsight is 20/20, but foresight is not. I'd consider this more difficult and much higher risk than picking any of many market investments that let you spread your risk in an infinite variety of ways.

    2) Physical space to store ("investment" level quantities) hundreds or thousands of crates of ammo... personally I don't have it. Maybe if you have an unused secure warehouse somewhere, it is less a problem.
  16. Buck Kramer

    Buck Kramer Well-Known Member

    Didnt see that he didn't even have guns to shoot that caliber, in that case, no.
  17. Hacker15E

    Hacker15E Well-Known Member

    And if you'd invested that same money in the market smartly over that same time, I bet you'd have been able to do a lot more than what you'd have earned on stored Carbines over the last 50 years.
  18. TennJed

    TennJed Well-Known Member

    The average stock mutual fund would have turned that $15 investment into $830 over that 50 year period.

    Guns/ammo are NOT good investments from a monetary standpoint, but as a hobby it does pretty well compared to other hobbies. As much $ as I have put into this hobby, I could recoup a fair amount back if I needed to.

    But no one should be fooled into thinking they are good "investment"
  19. CZguy

    CZguy Well-Known Member

    :what: My wife reads this forum sometimes......decades of careful training could potentially be lost in a matter of seconds. :p
  20. leadcounsel

    leadcounsel member

    Dunno - a $100 SKS from 2005 is worth 3 times that.

    7.62x25 ammo has tripled in value since about 2010.

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