Cashing in on your gun collection?

[jrdolall]

Buying used Hi Points is a better investment than a CD right now. I think the bank wants to give 1.25% on a 48 month jumbo. It wasn't that long ago that I was getting 8% on a 12 month and it didn't need to be jumbo.

The market has been good for two years but I am looking for that bubble to burst soon. Of course I have been looking for it to burst for about....two years.

I have invested quite a bit of money in older Marlins and Winchesters over the past 3-5 years and will still buy another if I find one at a decent price. Bottom line is that a $25k CD won't make you much of anything in today's world and I can at least admire a gun and clean it once in a while.

 

[oldbear]

For years I believed that the firearm bubble would soon burst. So I turned down a number of classic S&W revolvers, at what would be considered, today, a good to very good prices. I.e. 4" Model 19's selling at $700.00. 2 1/2" M-19's at even more. So I stopped trying to guess when prices will level off.

My only concern with firearms as an investment, is the ability to get your investment back in a HURRY. You have to find a buyer who wants your model of firearm and is willing and capable of buying it. Not always the easy way to go.

 

[Vodoun da Vinci]

I have never lost money on a gun.... I always recovered at least what it cost me and usually then some. Last Summer I bought a nice Colt 1903 made in 1930 for $600ish and thought it a decent deal. I have since seen lesser specimens go right out the door here locally for $750 - $900.

I never considered buying/selling as an investment but if I'd had the idea last Summer or before I'd have purchased 1/2 a dozen of the Colt 1903's I didn't buy and sold them for decent money this year locally.

I have no idea why they are so popular so fast right now.

VooDoo

 

[maxxhavoc]

The key to getting a gun that appreciates is how irreplaceable and/or unique they are. Milsurps have appreciated more than anything else I have in my collection. If you got them during "the good old days" you are looking at decent gains, but I can't think of a single Milsurp in my inventory that has depreciated.

When 8mm ammo was cheap, speculation was that the guns would be worthless when the surplus ammo dried up. No, they are still going up in value.

When the SKS rifles were selling for $69-$89, people said they were so cheap and plentiful that they would never be worth more. Nope.

People speculated that the M1 Carbines would not be worth a lot after the CMP ran out of guns/ammo them since there were so many, and civilian ammo was so expensive. Wrong. They are expensive, and hard to find one at a decent price.

WWII guns are irreplaceable. Both gun collectors and history buffs like them. I won't say they are a great investment, but I am confident I won't lose money on mine.

The CMP still has Garands, and for the folks who say Mosins will be worthless after ammo dries up, or "cheap now, cheap later" read the above. No more WWII Mosins will be made - but new collectors are being made every day.

In contrast, I have many examples of "new" guns I have that are worth almost exactly what I paid for them many years ago - not necessarily adjusted for inflation either.

 

[PabloJ]

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?

Having hundreds of guns and no emergency fund to get $3000 is very poor planning. Gun sales is regulated business and I would not put too much money into it. The only way to make out well is too buy desirable guns at low prices.

 

[X-Rap]

There are many variables and risks in making firearms a primary investment.
Laws change and can effect values either way and just the cost of selling can be factored by legal changes.
In CO prior to mandatory BG checks guns could be turned quite easily and buying from those who needed to sell and selling to those who wanted to buy could easily net a 50% increase in value.
Today with the PITA and cost/risk of making a simple private sale or trade makes it much less appealing.
It does seems hard for me to understand a man having that number of guns and finding himself in that desperate need to sell position though.
I see a much more plausible scenario in a guy accumulating a large collection and then in older years selling off a couple at a time to supplement his retirement and pay for little things like vacations or toys that may interest him more at the time.
Private sales from an undocumented collection could be a substantial supplement considering there would not need to be taxes withheld or profit recorded.

 

[Vikingsoftpaw]

Sadly yes. I've found it necessary to sell off many pieces of my collection. I was unemployed from 2008 thru 2011. I found it necessary to part with 3/4 of my collection, firearms taking over 15 years to accumulate.

I needed the cash to survive.

 

[patriot53]

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.

+1
In the Spring of 2013, I was fortunate to get a Benelli M4 H2O w/ the adjustable 3 position stock...that Benelli had to discontinue due to the ATF.
They eventually brought it back with a fixed solid stock.
I can sell mine for $1,000+ over the price I paid !

I also, just bought a "mint" pre-owned Merkel SR1 9.3x62 Semi-auto for $1400. and they go for 3,500+ new ...IF you can even find one, or Merkel decides the USA gets any?

And try an get a new Sako Stainless Hunter...only sold in Europe, but a few got here under Sako's yearly release-a-model to a few select dealers program...so I jumped on the only one for sale in the USA, at the time...paid less than MSRP...
NOW $$$$

My Browning BAR Gold Medallion is now "discontinued"...so $$$...
My Ambush 5.56 AR15 in Blaze Pink Camo : discontinued only in .300 AAC

...and I have a new, never fired Colt LE6920 GOLD Anodized Receiver, FDE -
1 0f 1500.
How about a Colt Polished Chrome Diamondback .38...bought early 80's for $175.,
NOW $$$$.
Anybody have any Colt Pythons bought in the 70's -80's...$$$$ now !!!

Most of the "NEW" guns i've bought in the last 2 years...I bought several hundred under MRSP, online ...well below LGS or BIG BOX chain costs...NO TAX / FREE or below $10. shipping.

On & on...so , YES...buy wise...BETTER than money-in-the-bank !