Buy Guns Not Gold- A Better Investment / GunsAmerica blog

[Bill_Rights]

I have been thinking for years now that guns/ammo are a better value investment than almost anything else. This article by Paul Helsinki on the GunsAmerica blog says it pretty well.

Buy Guns Not Gold- A Better Investment in the Age of Uncertainty by Paul Helinski

While it is a very long article and not particularly well written [sorry Paul, in case you are a THR member], the author does give an in depth analysis including 4 different scenarios about what might happen with the economy in the next 10 years. In each scenario, guns come out as a worthy investment. Only one of the scenarios is anywhere close to a TBDLO, SHTF, survivalist one, and there are no "zombies". I think it is a real possibility, as are the other three scenarios. Any comments?

And, just to give a flavor, here is an excerpt on the mild breakdown of law and order scenario (Option 3: High Unemployment and a De Facto Depression):

Imagine what America will do when the drive by media reports that police forces may have to abandon their posts because state treasuries are empty. Already cities across the U.S. will face a projected shortfall of $56 to $86 billion between 2010 and 2012, according to a report from the National League of Cities. Some cities in California have already disbanded their police force, leaving public safety to the already overburdened county law enforcement.

A depression of sorts, or even worse a full blown depression, will mean a cut of public services. High unemployment means lower tax revenues, which means states not able to pay their bills, which means that services, such as parks, fire and police, will be cut regardless of the outcome. It isn’t just California. New York, and other bastions of out of control government entitlements half already slashed public services. It is a national epidemic already.

This, coupled with unemployment itself of course, will lead to higher crime rates, newsworthy higher crime rates, and this is going to make people scared. By then most people aren’t going to be worrying about how much spot gold is going for today. They just want to be able to protect the two loaves of bread and 2 pounds of butter they just got off the FEMA truck, if the FEMA truck still would even exist at that point.

Civil unrest is something that the government is already planning for, though most people don’t want to believe it. Civil unrest is part of a destabilization. If a depression happens, there will be rioting, there will be crime, there will be people crazy to own guns to protect themselves. This is something that could happen today, let alone if things get worse.

Already, just since the Heller case brought the great American tradition of gun ownership into the public eye, droves of “city people” who knew not from guns have shown up at the gun rental counter to get a piece of what they have now come to understand is the foundation of American freedom. Many of them have come to the conclusion that they were unknowingly on the wrong side of the issue.

 

[kozak6]

The owner of GunsAmerica wants us to buy guns . Especially expensive ones.

It's interesting to see gold vetted as an investment.

Guns aren't really any different than buying any other collectible you have to personally store and maintain. They tend to hold value, sure, but you have to really do your homework to come out ahead. And then, I don't know if I would want to depend on an auction to get my money back, especially if I needed it in a hurry.

 

[parsimonious_instead]

One of the keys to this being a good investment will be whether it keeps up with inflation.
Obviously gold has rocketed up faster than guns or consumer goods in general.
Now, in a future scenario in which there is some sort of declared state of emergency, and firearms sales are outlawed, there'd be an immediate black market for guns - they'd immediately command higher prices.
I would advice putting too many eggs in this particular basket. Perhaps buying a few extras, some additional spare parts might not be a bad idea.
I think stocking up on ammo might be the way to go, especially 9mm and .22. What you don't need for yourself can easily be sold or bartered.

 

[cacoltguy]

The authors economic ideas are a little shaky at best. We are already experiencing high rates of inflation in the U.S. (The Fed grossly under reports inflation rates since it no longer includes gasoline and food prices in its figures) Unless the U.S. stops destroying the value of the dollar by racking up debt and printing money via Bernanke's wonderful printing presses, I'll continue to invest in gold. Considering this will probably never happen no matter who gets elected, I expect gold to stay strong for the foreseeable future. I won't, however, be stockpiling guns as a way of storing my wealth for future economic crisis'. Unless you have a collectible piece, guns are only worth their value as a tool during economic collapse and there isn't really a shortage of them. There are so many people and companies producing them that even in a total economic collapse, I think they will still be made. The funny thing is, if the U.S. ever did go belly up and I had some guns for sale, guess what is the only form of payment I'd accept? Yep...gold. It's been valued for millions of years for a reason.

 

[feedthehogs]

If you believe in that sort of fear mongering, then food is the better investment.
You can't eat guns, ammo or gold.

While the latter could be used to trade in a black market economy, long term food would be the better value as a whole with a gun or two to protect it.

Also this country has been thru some serious situations before in its history and no mass rioting or zombie raids come to mind.

All the gov't has to do is build more printing presses and continue printing the dollar. It may not be worth the paper its written on, but the system won't totally collapse either.

It amazes me that when people can't afford to go out and eat 5 days a week, they think the world is coming to an end.

 

[Sav .250]

Stock market gold price(per ounce) $1,679........ J s/n.

 

[two gun charlie]

I tend to agree , my sako .375 H&H has held it's value very well , I think this is especially true in countries that have tight gun laws , or are about to get tight gun laws

 

[heeler]

Okay,I have a question.
I store my firearms in a good gun safe thats inside my home.
Where do you gold buyers store your gold.
If it's in some sort of account what makes you think it will be accessible when the times get as out of control as some economist's dire predictions forecast??

 

[Shade Tree Welder]

Gold and silver are fine for currency when financial systems breakdown; but
you cant eat, kill (food) or shoot gold and silver. Steel (guns), lead (ammo)
and food will be the truely valued currencies if things get real bad.

 

[RaceM]

Yup. Being able to trade a working firearm for food or fuel is a better plan than gold.

 

[Mike1234567]

I'm not a Mormon but those folks have it right when it comes to stocking up. Gold/silver? IMHO, if one wants to use rare metal for currency/barter then old/worn silver coins of non-collectible value are best because they'll have known values and are easily recognizable.

 

[two gun charlie]

If it's in some sort of account what makes you think it will be accessible when the times get as out of control as some economist's dire predictions forecast??

No heeler I keep my gold in the same safe as my guns dude

 

[MtnCreek]

IMHO, sinking a lot of money into gold right now would be like buying a lot of investment properties back in '07.

 

[Cop Bob]

I have some in my gun safe, however the bulk of it is in a safe deposit box.

Btw, I buy both, I have made A LOT more money off of Gold than I have Guns.

And Silver too, however the Silver market is much more subject to Commodity ups and downs of supply and demand these days since no country except Mexico still prints coinage with Silver.. It today is primarily an industrial metal... but I made a lot of money in active trading of industrial Copper, Nickel and Alum as well... It is what I do full time since my retirement.. It serves me well, my toy inventory is WAY up... and it is easier to find, and cheaper to buy.

A WORD OF CAUTION ON BUYING GOLD... stay away from Jewelery unless you REALLY KNOW HOW TO GRADE GOLD... Stick with Bullion products and coins.... it is much easier to deal with, and it's purity, which is what it's value is based upon is guaranteed.

 

[Robert]

Buying guns as an investment is not a great idea unless you are buying rare or specialty items that not every one has. Think I am wrong? Ask someone that bought a few ARs during the panic that can not unload them now for anywhere near what they paid for them. The average AK or AR is a terrible investment piece.

Gold may not stay at it's current level forever and it will drop at some point, but it will always be gold and it will always be in demand. I agree with Cop Bob, the smart thing to do is buy both. Maybe not as an investment but at least to cya.

 

[rcmodel]

I have been a gun collector for all my adult life. About 50+ years.
And I should have bought gold if I had wanted to die rich!

Very few guns have even begun to keep up with the inflation rate since I bought my first one in 1960.

Had I have been smarter, I would have bought up all those old Colt SAA's and Winchesters floating around then, and a few very specific models of German Luger's.

But I wasn't.

And even then, with what I made an hour in my first job?
A really good old Colt SAA, Winchester, or rare Luger was about as out of reach then as they still are now.
I had a pretty good job in 1962 and only made about $50 a week take-home pay.

Gold was $35.23 an ounce in 1962.
A good used Colt SAA, Winchester, or Luger was about the same price.

Today? Gold is $1,672.00.

A Colt SAA might fetch that or more.
But it would take a pretty special Luger or Winchester to bring that much.

Other common guns bought then?
Not even in the game!

The trick has always been to figure out what will be affordable now that will still be collectible and much more valuable 50 or 75 years from now.

Gold is a safe bet because people have coveted it since civilized man first came to be.
And demand is greater today then ever before in history due to it's use in electronics, cars, weapons systems, and space.
Unlike in the past, a lot of it is used today in consumer products and will never be recovered.

But which of todays guns would be a safe bet to appreciate faster then inflation 50 years from now?

Only the Shadow knows!

rc

 

[WinThePennant]

I've often thought that AR15 lower receivers are likely to grow in value in the years/decades ahead. Especially if there is another more effective "assault weapons" ban. There are a lot of very good AR15 lower receivers that can be had for less than $100.

 

[pockets]

I'm all set .... one of these days my Beanie Baby collection will be worth a fortune!
.

 

[mortablunt]

MG's are definitely a great investment. Other firearms tend to have an inverse bell curve value. They start of pricey, become cheap, and then go up in cost again as they become antiques.

 

[Coyote3855]

I wish I'd bought a ton of Webleys when I could have mail ordered them from the ads in American Rifleman. IIRC, they sold for around $15. Colt and S&W 1917s were pretty cheap as well.

 

[JohnBT]

"Gold is a safe bet "

I wonder what the price of gold will do when the stuff hits the fan and everybody and their brother decides to sell at the same time. I know what usually happens when there is an oversupply of something.

 

[oldgold]

Mike1234567 wrote:

I'm not a Mormon but those folks have it right when it comes to stocking up. Gold/silver? IMHO, if one wants to use rare metal for currency/barter then old/worn silver coins of non-collectible value are best because they'll have known values and are easily recognizable

+1 Silver right now has not caught up with gold prices and in my opinion is the best investment right now. The government has banned private ownership of gold in the past and may ban both gold and guns again. I've been buying silver coins all summer and intend to put a few thousand more into them. I try not to buy collector quality but only on silver content.

Of course I've got the guns and ammo situation well in hand

 

[Gordon_Freeman]

Buying gold now would not be wise since it is so high. I think buying food is the way to go if you are worried. Ammo seems to be a good choice since the price keeps going up.

 

[azmjs]

I only need one gun if there is a nuclear war or similar disaster that would cause the breakdown of all civil society. I'd probably shoot myself with it.

I don't think it will be too long now before gold coins turn out to be a much worse investment than guns, even guns that haven't gone up in value.

Sort of like how houses used to be.

 

[Mike1234567]

For the "investment scenarios" mentioned, e.g. "total economic collapse", doesn't it make more sense to buy cheap but reliable/usable firearms such as Hi-Point pistols and carbines in the most common calibers such as 9mm Luger, .40 S&W, and .45 ACP? After all, anyone with half a brain will be thinking of firearms as utilitarian tools rather than pretty-to-look-at "safe queens". What they'll "need" are "survival tools".