Firearm Investments as protection from Inflation

Discussion in 'General Gun Discussions' started by MT GUNNY, Oct 16, 2009.

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  1. MT GUNNY

    MT GUNNY Member

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    At the beginning of this year, I (by my own idiocy) had a large bill to pay. If it wasn't for my collection of Firearms, I would not only be broke but in the hole.

    That situation got me to thinking about investing in Gold and Silver or even firearms. Because of the price of those choices, silver would be my beginning option.

    So, would "firearms" rise in value IF the dollar fell to nothing? I'm thinking they would for a few reasons.

    1: More people would want to be able to protect there assets.
    2: More people would want to protect there family.
    3: Demand Would be high.
    4: Those with many firearms would sell them for Food and gold and silver, Bartering.

    I understand that a used one with lots of rounds would go for less than a NIB or slightly used. Another thing to consider would be known "reliable" firearms.

    Any thoughts!
     
  2. wvshooter

    wvshooter Member

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    My guess is the best hedge aginst hyper inflation of any currency is always going to be gold. Diamonds as well, but they aren't the perfect exchange medium like gold is. Guns? Guns have a lot of the same properties as gold and diamonds when it comes to having intrinsic value. I'd lots rather have a hundred thousand in guns than the same amount in three or four collectible cars.
     
  3. CWL

    CWL Member

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    Doesn't make sense. You are assuming that we will be hit with hyperinflation. This comes from a failed society with no trading value. Might be true for the nations of Africa or So. America, but not so for the United States. Since interest rates are at an all-time low, jobs are scarce and most people are afraid to spend money, you aren't going to get any inflation.

    Gold, silver, other precious metals are more useful because you can break down the amount into usable units. So a loaf of bread or a tank of gas might be traded for some silver or gold, but how do you get change back for a .38 revolver?

    Seriously, if you are only thinking about beginning to do this, you are already one year+ late since stocks have already creeped back to their pre-crash values. Anything you attempt to do now only means that you will pay a premium for firearms.

    You'd do better for yourself if you fully-funded your 401K, Roth IRA or SEP plan.
     
  4. GRIZ22

    GRIZ22 Member

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    I would agree gold or other precious metals a better investment than firearms. More liquid asset and even if you buy high it will get back up there someday.
     
  5. HOME DEPOT GEORGE

    HOME DEPOT GEORGE Member

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    With whats been said so far I'd like to add always keep your eyes open for deals,for instance I recently picked up an older model Colt Combat Commander for 450.00 in near mint condition. Deals like that are guaranteed investments and a friend of mine doing plumbing work for an older widow lady picked up a bring back Luger she wanted out of the house for 250.00.
     
  6. 22-rimfire

    22-rimfire Member

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    I think firearms are a poor investiment. They are not very liquid and it takes too much time to convert to cash at a fair market price. You might make a little money, but you can't depend on it.

    Precious metals can be converted to cash pretty quickly if need be.

    I would suggest you start buying a roll of silver dollars a month and a gold coin or two per year for diversity. Stocks are still the best thing going.
     
  7. mgkdrgn

    mgkdrgn Member

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    If the dollar does fall to "nothing", the last thing you will be doing is -selling- any guns or ammo.
     
  8. bluetopper

    bluetopper Member

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    Back 3 or 4 years ago I thought very seriously about buying two shipping crates of new SKS rifles just to hold on to.........Boy I wish I would have now.

    I think a better investment now than firearms would be ammunition, especially in .223 and 7.62x39.
     
  9. Beelzy

    Beelzy Member

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    Siver coins...like Margan dollars, Mercury head dimes, Standing Liberty quarters.

    That will be the new cash when paper goes up in smoke.
     
  10. Birdmang

    Birdmang Member

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    Thats a huge when...
     
  11. gunnie

    gunnie Member

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    ..."I think a better investment now than firearms would be ammunition, especially in .223 and 7.62x39."...

    +1...would add 7.62x51, 5.54x39, 30-06, 9mm, 45 ACP....military calibers, new and old. you'd have to decide what may be in more demand for YOUR area. the preferences WILL change with location.

    firearms prices are still at unsustainable level$. bad time to buy in at present.

    high cap magazines for rifles might be a better bet at present. it's not like they will go down if a ban does not happen. much less security needed than firearms or ammo as they only fit one style of weapon for the most part. less maintainence and storage modifications required than weapons or ammo. no fire hazard considerations.

    gold/precious metals are already at an all time high, also a bad time to invest there.

    for actual "investments", firearms do well enough, though not yielding as much profit as conventional venues. but if you are considering a total SHTF scenario [as in all out depression] firearms will be worth as much as food, as a means to protect same. good luck trying to sell/barter with one that has no ammo, or spare mags in a semiauto wartoy format. at times such as that, stocks and bonds will be useless for many years of economic recovery that will follow.

    if you want to buy into items for worst case scenario barter, firearms are only a small percentage of what would become high demand trading items.

    pls see:

    http://thehighroad.org/showthread.php?t=231661

    starting at posting #12, for first hand experience from post-catastrophic depression in Argentina. NOT A PRETTY PICTURE.....

    gunnie
     
  12. bob.a

    bob.a Member

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    Firearms are sort of blue chip items; they keep their value, but only seldom does the value rise in any spectacular way, and when it does, it's usually artificial, due to some govt regulation or threat thereof. All my firearms are worth more than when I bought them, but they are not going to finance my retirement. Still, nice to have.

    I got a bunch of silver coins from my father recently. He used to own a restaurant and when the changeover to alloy coins went fdown, he and Mom would sort out the good stuff and put it into the safe. Now silver coins are worth around 12 times or more of their face value. Some are probably worth a lot more, to coin collectors, but I'm looking at the base price of silver, for coins that are suitable for melting down.

    Nice thing about silver coins is their value (as silver) is easily known, and they're not too expensive. With a Krugerrand selling for about $1100, it's not something you want to carry around or try to spend after the crash, unless you're in the market for a big-ticket item. But with silver coins, you can do some shopping at reasonable price levels.

    Now, I'm not expecting a major crash, but I'm hanging onto the coins (and guns) anyway. They don't take up too much room, and they're a comfort to me.
     
  13. NMGonzo

    NMGonzo Member

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    I've lost money on guns.

    Never lost money on gold.
     
  14. TEDDY

    TEDDY Member

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    Crash

    you keep your gold if I want it I will kill you and take it.as to selling what do you think paper is worth.you will want food.so buy land.I have 90 acres.I can and do grow vegtables on it.and preserve them.I have deer on the land.
    turkey,and rabbits and doves.as to gun value I bought lugers for $20 in 1945 and a win 73 for $5.they were worth the price I paid.now look what they are worth.gold is only worth what someone will pay.look at stocks they went down like a rock.can you buy food with gold.if money is worth nothing.
    dream on.land man thats whats worth value.I have timber and crop land.
    the city people will be all over looking for food.and if your not armed you will be crushed.
     
  15. Trebor

    Trebor Member

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    I've lost money on stocks.

    Never lost money on a gun.

    YMMV.
     
  16. freakshow10mm

    freakshow10mm member

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    The only way to defeat inflation is for the government to print less and spend less.
     
  17. gunnie

    gunnie Member

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    inflation=money devaluation.

    mel tappan wrote an interesting article on this subject, back in the mid/late 70's. the point that sticks in my brain to this day was his statement that near the begining of the 20th century, an ounce of gold was worth close to the price of a new colt "peacemaker" SAA. he stated it also was when the article was written, [and is still today]. the gold's worth has changed very little, except in demand peaks/valleys.

    but for one who was trying to trade an ounce of gold for same colt, say during the height of the watts riots, ground zero in the DMZ? doubt your gold would do the trick. even IF you find find someone willing to trade, in a total breakdown of normal society function, what would you do to prove it was...

    1 gold?
    2 24k/specific purity?
    3 solid?

    gunnie
     
    Last edited: Oct 17, 2009
  18. bob.a

    bob.a Member

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    Krugerrands are recognised pretty much worldwide. The advantage is that their gold content is standardised and known, they're minted, which makes any attempt to shave off some metal pretty obvious, and you can prove they're gold by weight. So on the whole, while not totally foolproof, it would take someone with a lot of talent and equipment to make a fake.

    You'd be hard pressed to manage a trade in a free-fire zone, but I'm sure gold for firearms would be doable not too far away.

    Also nice is that a 1 ounce coin is easily concealable on the body. Not a bad storehouse of value, really; easier to sell than diamonds, for example, portable, easily recognised. That's probably why it's been used that way for a few thousand years with some success.
     
  19. 22-rimfire

    22-rimfire Member

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    If precious metals interest you, use the dollar cost averaging approach and just keep buying at a regular pace regardless of the price. Stick with minted coins.

    Ammunition is a reasonable commodity.

    If things got really bad, there would be no money to buy firearms. You have what you have or can keep. I anticipate no fall of the government. Didn't happen during the Great Depression or the major recession in the 1890's.

    A major natural catastrophe such as significant vulcanism in the west or earthquakes in the middle of the country could prove to be a long term test of the will of the American people.
     
  20. A-FIXER

    A-FIXER Member

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    metal....... if the USA falls you'll be givin those firearms away to anyone will to help you stand in the darkness of Kaos as we fight for long lost REPUBLIC of once was.....
     
  21. wvshooter

    wvshooter Member

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    All this talk of gold reminded me of a book I read about the Pol Pot regime in Cambodia. People trying to flee the country, at least people who had resources, always relied on gold. There really is no substitute for gold or silver if "the dollar falls to nothing". I don't think anyone anticipates that happening to the US dollar but it has certainly happened to the currencies of other nations at different times.
     
  22. John Wayne

    John Wayne Member

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    Gold is a safer investment in that it is at least as valuable and much more of a liquid asset.

    There are no laws that I know of regarding the transfer of gold to certain persons, and no fees required. It can also be divided up into smaller quantities much easier than selling a gun for parts :D
     
  23. huntsman

    huntsman Member

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    The only concern I have is government.

    We live in a time where owning specific guns could become illegal.

    But on the other hand just looking at ammo prices it’s easy to believe things will never be cheaper than they were yesterday.
     
  24. gyvel

    gyvel Member

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    Nice...:uhoh::what:
     
  25. NMGonzo

    NMGonzo Member

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    Gunnie: I saw the Argentinean collapse coming already in 1999 and I moved out.

    Guns are available to most people, but limited to calibers due the nature of the regulation.
     
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