A friend of mine is a devout collector of firearms. He owns 100s of guns. Recently his best friend, a dog named Sparky, needed surgery at a cost of $3,000. He went into his gun room, picked out a few items and sold them for enough money to pay for the surgery. Sparky is now happy and healthy. My friend believes that his collection is better than money in the bank. Do others use your collections in this manner?
Cashing in on your gun collection?
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huntsman
Member
I am curious what he could liquidate that quickly and for that much cash? I've never really made any serious money on gun sales but then I've been a poor bottom feeder.
Onward Allusion
Member
From a liquidity perspective, no - guns are not better than money. From protection against an economy going to hell in a hand-basket (nah, could never happen here...), it is better than paper money.
Get gold and silver coins and protect 'em with guns - much better option.
Get gold and silver coins and protect 'em with guns - much better option.
musicman10_1
Member
I could do it if necessary. I have the basic philosophy that guns in the safe are as good as money in the savings account; neither really makes you money, but you rarely lose any either. AND I get to enjoy the ownership of some nice firearms.
Years ago, I had a good job, 2 almost new vehicles (both
4-wheel drive), a motorcycle (Harley Sportster), a few
thousand in the bank, a home and land. I also had a gun
collection of about 30 to 35 guns. Then the peanut farming
idiot became president and I lost my job, had to sell the
vehicles (ended up with a Pinto), had to sell my bike and
one by one, I had to sell off my guns. The only things I
managed to hang onto was a WWII Colt 1911A1, and my
Savage Fox double barrel 12 ga. Every thing was sold at
a loss, but it saved my home and land until I managed to
get back to work. (Same PD that had cut me due to
downsizing) Bank account was $0.00 by then too.
So to answer your question, yes I have and I'd do it again
if it came to it but since then, I've worked on becoming
totally self reliant if I need to be. I own everything and I
pay cash for everything or I don't buy it. I can farm and
hunt for food, I have a good water supply, 28 acres of
land to provide everything I need if things go south. My
land has coal within pick and shovel reach and an old deep
mine that is open and makes a great root cellar. At least
20 acres of woods to hunt or cut and 2 ponds (one is only
1/2 acre, the other 2.5 acres) and both are stocked with
brim, bass and catfish.
My wife and I were raised on a farm and we know how to
work it, can food, etc etc. Something few people know
how to do these days.
Dano
4-wheel drive), a motorcycle (Harley Sportster), a few
thousand in the bank, a home and land. I also had a gun
collection of about 30 to 35 guns. Then the peanut farming
idiot became president and I lost my job, had to sell the
vehicles (ended up with a Pinto), had to sell my bike and
one by one, I had to sell off my guns. The only things I
managed to hang onto was a WWII Colt 1911A1, and my
Savage Fox double barrel 12 ga. Every thing was sold at
a loss, but it saved my home and land until I managed to
get back to work. (Same PD that had cut me due to
downsizing) Bank account was $0.00 by then too.
So to answer your question, yes I have and I'd do it again
if it came to it but since then, I've worked on becoming
totally self reliant if I need to be. I own everything and I
pay cash for everything or I don't buy it. I can farm and
hunt for food, I have a good water supply, 28 acres of
land to provide everything I need if things go south. My
land has coal within pick and shovel reach and an old deep
mine that is open and makes a great root cellar. At least
20 acres of woods to hunt or cut and 2 ponds (one is only
1/2 acre, the other 2.5 acres) and both are stocked with
brim, bass and catfish.
My wife and I were raised on a farm and we know how to
work it, can food, etc etc. Something few people know
how to do these days.
Dano
arizona_cards_11
Member
Unfortunately, you are losing money if you're stashing it away in a savings account. It's unfortunate, but unless your interest rates can top inflation, you're getting devalued to death.
mgmorden
Member
I don't think they're a good "investment" per se. They don't typically appreciate in value compared to most things.
HOWEVER, guns depreciate far less than most items. You can buy a gun, it's now a used gun. It takes a 20-25% depreciation hit by becoming used but then holds steady and rises with inflation. If you buy a used gun to start with its already taken that hit.
In that regard a gun collection can generally be sold and you can recoup a good chunk of the costs you put into it.
Compare that with cars. My card I paid $17,000 for new 8 years ago (paid a lot more than that when you work out financing). If I sold it today I'd be lucky to get $3,000.
Computers: a $1,000 computer today will be worth $75-100 in 5-6 years.
A $500 gun in 8 years will be worth $400-425.
As I said, not a good "investment", but a much safer hobby to indulge in if you suddenly need to get some of your money back out of it.
HOWEVER, guns depreciate far less than most items. You can buy a gun, it's now a used gun. It takes a 20-25% depreciation hit by becoming used but then holds steady and rises with inflation. If you buy a used gun to start with its already taken that hit.
In that regard a gun collection can generally be sold and you can recoup a good chunk of the costs you put into it.
Compare that with cars. My card I paid $17,000 for new 8 years ago (paid a lot more than that when you work out financing). If I sold it today I'd be lucky to get $3,000.
Computers: a $1,000 computer today will be worth $75-100 in 5-6 years.
A $500 gun in 8 years will be worth $400-425.
As I said, not a good "investment", but a much safer hobby to indulge in if you suddenly need to get some of your money back out of it.
I strongly disagree. This is only true if you buy new budget guns. I tend to buy quality guns and buy them used. Over time quality guns go up in value. If you buy them used that increase comes much sooner. 15 years ago a Taurus revolver could be had for $200, today it will still bring about $200 used. A S&W revolver that sold new for $400 back then ($300 used) will now bring $600 used and in good condition. Most guns in my safe will bring anywhere between 1.5X-3X what I paid for them. Money in the bank isn't doing so well, but I'd still not put all of my money in guns.
I don't buy stuff and put it back with the intention of making a profit on it later, but have done so multiple times in the past. Within the last 10 years or so I've sold off, or given away quite a few of my guns. I decided I wanted a Kimber several years ago. I took 5 guns into a LGS and placed them on consignment. I had about $1500 invested in all of them. Two months later I picked up a check for $2500. I spent $800 on the Kimber, $400 on a Leupold and put $1300 in the bank. Instead of 5 mediocre guns that were rarely used I now have 1 nice one. Including the scope I'm out of pocket about $200 after the profit made selling the others. The scope will decline in value over time, but by the time my son gets the rifle it will be worth a lot more than the $800 I paid. Used ones are selling for just about that right now.
I've done the same on occasion to pay for other stuff too. There are certain guns with family history that are off limits, but most all are for sale for the right price. Or if there is another more important need.
R.W.Dale
Member
They may not be a "good" investment but unlike most hobbies you can enjoy them AND NOT lose significantly on depreciation.
Generally speaking guns don't lose value like most other hobby items. Nor to they consume cash on their own in the form of upkeep. They also tend to be relatively easy to move.
They may not be as sound an investment as gold or silver, but unless you're into running precious metal coinage through your fingers and laughing manically they are a lot more fun. In the short to mid term as investments and hobbies they look like a veritable windfall compared to electronics, cars, bikes or boats
Generally speaking guns don't lose value like most other hobby items. Nor to they consume cash on their own in the form of upkeep. They also tend to be relatively easy to move.
They may not be as sound an investment as gold or silver, but unless you're into running precious metal coinage through your fingers and laughing manically they are a lot more fun. In the short to mid term as investments and hobbies they look like a veritable windfall compared to electronics, cars, bikes or boats
returningfire
Member
Some firearms are good investments, and some are not.
Buy $5,000 worth of Hi Points and what is your investment worth in five years?
Buy $5,000 worth of Colts and what is you investment worth in five years?
And Firearms are objects, possessions. Don't let your possessions run your life, let it be the other way around.
I'm still working, making the same I was in '08 but the money doesn't go as far. My wife has worked for the same medical practice for 18 years and they are now closing, partly because of the FUBAR insurance situation, but she is out of a job come this Friday. For how long, who knows.
I still have a mortgage, and a truck payment, and the usual credit card payments. So I am sitting here right now thinking of which of my firearms do I sell first to keep the cash flowing. I only hope there is some cash flowing in the right direction by the time I run out of firearms to sell.
I'm just glad I have a few to sell to keep the wolves at bay until things improve.
Buy $5,000 worth of Hi Points and what is your investment worth in five years?
Buy $5,000 worth of Colts and what is you investment worth in five years?
And Firearms are objects, possessions. Don't let your possessions run your life, let it be the other way around.
I'm still working, making the same I was in '08 but the money doesn't go as far. My wife has worked for the same medical practice for 18 years and they are now closing, partly because of the FUBAR insurance situation, but she is out of a job come this Friday. For how long, who knows.
I still have a mortgage, and a truck payment, and the usual credit card payments. So I am sitting here right now thinking of which of my firearms do I sell first to keep the cash flowing. I only hope there is some cash flowing in the right direction by the time I run out of firearms to sell.
I'm just glad I have a few to sell to keep the wolves at bay until things improve.
It largely depends on how big the collection is, and more important - what's in it.
If it's made up of "guns are only tools" kinds of firearms and you need money quick you'll probably take a loss. On the other hand if much or most of it consists of in-demand classics and collectables that were purchased over a longer time period you'll likely come out ahead. They're some "enlightened investors" that suggest that gold, silver, land, stocks, bonds, etc. are better, but the outcome depends on the value of such assets vs. the economy at the particular time you need to raise some money. That can be said about guns too, but looking at auction prices paid over a long time during all kinds of economic conditions will show that "the best" do well as an investment.
If it's made up of "guns are only tools" kinds of firearms and you need money quick you'll probably take a loss. On the other hand if much or most of it consists of in-demand classics and collectables that were purchased over a longer time period you'll likely come out ahead. They're some "enlightened investors" that suggest that gold, silver, land, stocks, bonds, etc. are better, but the outcome depends on the value of such assets vs. the economy at the particular time you need to raise some money. That can be said about guns too, but looking at auction prices paid over a long time during all kinds of economic conditions will show that "the best" do well as an investment.
ny32182
Member
Would I ever get into a position where I owned hundreds of guns, but didn't have $3k cash to my name? Absolutely not.
I wouldn't consider the example made by the OP as "cashing in". To me, it reads more like someone having to sell his fingers in order to keep his thumb.
I still don't count firearms as investments unless you are talking about true museum-quality pieces and guns of historical significance.
Just an example on investment vs hobby: Rather than spending $500 on a gun in 2004, you had invested in Apple stock. Your $500 investment would be worth $20,380.39 today, that's a 40X growth of your investment. In comparison, your gun may have gone up $100-150 due to inflation.
I still don't count firearms as investments unless you are talking about true museum-quality pieces and guns of historical significance.
Just an example on investment vs hobby: Rather than spending $500 on a gun in 2004, you had invested in Apple stock. Your $500 investment would be worth $20,380.39 today, that's a 40X growth of your investment. In comparison, your gun may have gone up $100-150 due to inflation.
If you own a hundred guns then you probably have $10k worth of ammunition.
I could sell guns if I needed the money but probably at a big loss. Sudden need means sudden sales and you rarely get a good return selling something quickly. On the other hand if you have the time to research the value and then find the right buyer you may make money.
I don't really consider my guns to be an investment any more than I consider my house to be an investment. Could I sell my house? Sure but could I get back every dime I have put into it over the past 17 years? Probably not.
I could sell guns if I needed the money but probably at a big loss. Sudden need means sudden sales and you rarely get a good return selling something quickly. On the other hand if you have the time to research the value and then find the right buyer you may make money.
I don't really consider my guns to be an investment any more than I consider my house to be an investment. Could I sell my house? Sure but could I get back every dime I have put into it over the past 17 years? Probably not.
Potatohead
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ny32182
Member
Any index fund will outpace firearms many times over. It is a rare firearm that will even come close to keeping up with inflation over time.
Yes, it is easy for me to say, but I've practiced what I preach. (and I never liked Lucent.)
Anyone buying a basic mutual fund would have benefited over 10 years, even including the 2008-2009 crash.
jimmyraythomason
Member
Depends entirely on the gun. Is my Inland .30 cal USGI carbine worth less now than it was 8 years ago? How about my Springfield M1 Garand? I paid $50 for a Marlin Model 1894 44 magnum saddle ring carbine years ago...what's it worth today? I bought several SKSs in the $100 range, are they worth that today? Funny thing about absolute statements....they never really are.
Joe Demko
Member
We went over this in a lengthy thread a week or two ago. Short version: Increase in price is not necessarily an increase in value. If you don't have a good understanding of what inflation and present value of a dollar mean, study them until you do. That gun you bought for $400 twenty years ago and can sell for $500 today lost value and was a poor investment. Looking at it any other way is no more than wishful thinking.
Jim Watson
Member
I think I could sell any of my guns for more than I paid for it.
Enough to outstrip inflation?
Some, yes, others not; but I have had the use of them for years.
Enough to outstrip inflation?
Some, yes, others not; but I have had the use of them for years.
jimmyraythomason
Member
Value is determined by what price the buyer and seller agree on nothing more. As an example,my M1 carbine cost my F-I-L exactly $17.50+ $2.50 postage to his house in 1967. It would easily fetch (if I had any inclination to sell, which I don't) between $1000-1500 on today's market. The gun hasn't changed but the market has. It has nothing to do with inflation.
oneounceload
member
Easy enough to do. A friend sold two shotguns to buy a different one which was inn excess of $20K. High-end stuff moves quickly if it is desirable and hard to obtain. Super rich folks are buying collectible art masterpieces and the like as a hedge against currency defaults and banks crashes
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