Buying A Firearm As An Investment

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Phydeaux642

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Let me first say that I haven't been buying firearms as an investment. If I had been, that would surely make them lose at least half of their value as soon as I took possession of them (my history with stocks and mutual funds is not good:cuss:). Everything I have purchased has been purchased with the intention of shooting it, even though I have some firearms that I haven't got around to shooting just yet.

With that being said, if a guy had $500-$600 to spend and was interested in buying a firearm that has a very good chance of increasing in value at a faster rate than other firearms, what would it be? I am not thinking "commerative" or anything like that, just a firearm that has been in regular production at some point whether currently or in the past.
 
5 AR-15 Lower Receivers. Wait until BO gets elected and then sell them right before the lefties take/restrict our evil black rifles. You should make a tidy sum.
 
A garand. They are higly desirable and they're not making anymore.
 
Unique helps

Met the guy who owned THE backpack mini-gun from the movie, Predator. He tripled his money in 3 years. Just a wee more than a few hundred bucks though. Just add three or four zeroes. :D
 
Phydeaux;

It's hard to say, the market is full of oddities. For instance, a mid-50's Winchester model 37 has appreciated around 10X over it's new price. But, holding the money for over 50 years, you coulda done better in the market, many times over. If it's a 'youth', double the current value. Did people in the 50's know what was going to happen? Of course not.

As a guess, I'd say latch onto a current new Ruger SP101 in 325 Federal & put it away, never shoot it. If the user market rejects this caliber, eventually the collecter market will come to it.

900F
 
In your price range? I'd be looking at a CMP Garand, a CMP carbine, a Cz-82, or a Tokarev. All are likely to appreciate.

That being said, the stuff that will really appreciate is higher-priced.
 
Ammo seems to be a good investment if you can keep away from it. Maybe you should buy ammo in calibers you don't own so you won't shoot away your profit. :)
 
The .475 Wildey Magnum is a semi-automatic pistol that became world famous when it was used in the 1985 Hollywood movie Death Wish 3 starring Charles Bronson....

... then just wait till the next time the movie airs, and hang out in the gun store waiting for that special guy to come in screaming that he wants one. ;)
 
Buy pre-lock Smith & Wesson revolvers in as good a condition as you can afford. Focus on the more popular models and you won't loose any money in the short term and will make a little in the long term. I would not shoot anything you intend to treat as an investment piece.

Colts are always good. The prices have just climbed and climbed in the last couple of years that it is hard to buy anything that is NIB for the dollars you have. I buy the 22's and they do pretty well in the long run. If you truly are interested in Colts I would suggest you buy some books first and begin learning about them.

Any of the well made military rifles should be good investments. Used to be you could buy M1 carbines for $100; not any more. Garands were always more expensive, but they keep getting more costly. You want guns with all original parts. Full autos are not a bad investiment either. Not my cup of tea however. Politics plays a significant role in affecting the value of the military weapons. Look into your crystal ball and roll the dice. But the Democrats are not particularly gun friendly as a rule and a more stringent assault weapon ban is likely if Obama gets elected. He's a city boy and has no appreciation for owning guns for the sake of owning and shooting them. He is pretty out of touch with mainstream America on this issue. To him, guns mean crime. If private citizens own guns, they are a resource for future crime (sort of a bank just waiting to be robbed).

One other thing. Guns as investments are generally a poor choice. You can make some money, but your return will likely be less than if you invested in the stock market. You have to love them to collect them. The increase in value is secondary to the pride and value you place on a nice collection.
 
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Typically firearms are not a good investment.

I bought several guns BC (Before Carter) that have become relatively rare and very desirable. But, in a quarter of a century they have only appreciated at roughly half the rate that a S&P 500 mutual fund would have. Guns are also relatively illiquid; you often have to wait for the right buyer. They are also a luxury asset class, there are times when few will want to buy them. You have to protect them, (safes and insurance) and worry about damage like water and rust. And unfortunately, arms do hold a possibility of being declared illegal and losing all their value.

A diversified, balance portfolio of low cost mutual funds from Vanguard (for example) will likely do you much better over the long run. Especially if you take advantage of a tax-advantaged IRA, Roth IRA, or 401k investments.

That being said, I've got a whole safe full of FUN.

Firearms for fun -- funds for investment.

Climbing carefully down from my financial analyst soapbox. :)
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Firearms are not a good investment unless they are the type sold at auctions (tens of thousands & higher price range).

Beyond that, probably good quality used S&W & Colt revolvers will appreciate over the decades -yes decades. Probably well-blued ones the most since they just aren't being made much anymore.
 
Heller will answer a lot of questions about guns as investments

In my former profession I was a stock broker and financial advisor, during the peak and then crash of the stock market.

I saw a lot of people lose a fortune of money - and there's no insurance for that.

Firearms are not a bad investment if you play it right. Buy used in great condition or guns that aren't being made any more. Keep them in good shape, insure them (not very expensive) and put them in a safe (most people should own a safe anyway for things other than firearms).

Yes, they are illiquid and pain in the butt to move so keep that in mind. But they are a valuable commodity - probably more so than jewelry when it boils right down to it. If you buy used then you don't lose money right off the top and will always be able to at least break even.

Heller will answer a lot of questions about the longevity of the 2A sometime this month. A pro-2A ruling pretty much ensures that guns are here to stay and a good investment.

Others above have given good advice. C&R rifles are becoming more rare and seem to double in price every few years. Garands are soaring in price too.

However, an investment should be something you ultimately intend to sell, but not necessarily. I look at my hobby as a hobby that earns value. I never intended to sell my guns, but it helps that they increase (or at least don't decrease in value) and it's a good secondary reason to collect. I've done a pretty good job with my guns for collecting and also for investing. If I were to sell all of my stuff at market value today, I would make a tidy profit on most of them. It's because I typically buy used and C&R guns at a discount and then take good care of them.
 
Guns are not typically a good investment, but of late certain guns are appreciating rapidly.

This has more to do with the plummeting dollar than it does with the value of the gun going up. An investment in Euros right now is really solid.

Certain European guns are rising in price pretty quickly. I bought a new EAA Witness six months ago for $300 and sold it yesterday for $375.I bought another one, match grade model to replace the one I was going to sell, a month ago for $460 and can't find them anywhere for under $500 now.

Europe is not suffering the same inflation rate as the US right now. Gas is staying about the same price in Europe while it is skyrocketing here. That's because oil is traded in dollars and dollars are worth less every day. Euros can buy more dollars than they used to so gas prices are stable in Europe.

Relatively low production European guns are rising with every shipment right now. The Witness is made in Italy by Tanfoglio. Unfortunately, the rule doesn't apply to SIGS or Berettas. The SIGs are high production and the Berettas for the US market are mostly US made and very high production in Europe.

I've noticed CZs making a steady rise in price.

Be wary of Glocks and other high-volume guns. Glock has gone up at a much slower rate than inflation. In 1998 you could buy a G19 for $450 new anywhere. Few people would pay $550 for one today.

One area that is about to take a big jump is in European imitations of American single action revolvers. The kind the cowboy action guys like. Prices have been lower than they should have been for a long time and with the collapse of the dollar they can't stay that way. Cost of manufacture is not going down, but the value of the dollar that buys them is going down quickly.

These may be short term issues. After the election we may get an administration that is willing to suck up six months of bad press to actually turn the dollar around. If that happens prices will stabilize, but there are opportunities to make 30 to 50 percent on certain guns in the next six months. OTOH, if those steps are taken to stabilize the economy there won't be very many people who have the money to buy the guns.

Another potentially strong investment might be in Norincos. A few years ago you could get a Norinco 1911 for $300 all over the place. Now it is hard to touch one under $500. There are a few on Gunbroker for $450 or $475, but by the time you add shipping and transfer fees you're at $500 or more.

There seems to be a mystique about Norinco AKs. I had a table at a gun show this weekend and no one would cut loose with a Norinco AK for under $700. It hasn't been long since these were in the $300-400 range.

The reason for the Norinco jump is different. Chinese guns were banned years ago. There were a ton of them in the country when the ban went into effect. Now it is getting down to people pulling them out of the back of the safe and thinking it's time to sell.

A good deal on a Norinco will probably get $25 to $50 percent in the next year or two.

All of that said, if you really want your gun to appreciate in value don't put it in a holster, don't modify it and don't shoot it.

I can't do that.
 
...

Luger 08 Pistols maybe?

(as the nazi-myth will always be interesting.)
 
You can consistently find guns for sale for less than their current value if you look hard enough. I am constantly browsing the used guns rack.
 
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