Firearms as a good investment

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velocette

velocette

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I have never viewed firearms as an investment vehicle as I have my 401k and other financial investments.
However, a recent romp through my safe brought me up to thinking about having a nice rifle or handgun that appreciated in value over the years, or at least did not drop like a rock, similar to automobiles.
My safe has an M1 Garand that I bought for $185.00 from the DCM. Now they are on Gunbroker for 6 ~8 hundred dollars. Like a S&W model 14-2 that I bought 25 years ago. worth today about double what I paid for it, like my 686, no -. Or my Win. 9422, still accurate as can be and at least double its purchase price even with honest wear.

Okay, I know that they won't appreciate as much a some investments, but they keep up with inflation and yield a lot of enjoyment while they are owned.
Tell me, when was the last time you took out your mutual fund, played with it for a day, enjoyed yourself with it all day, then put it back in your safe with a smile on your face.
The only caveat that I have learned is that buying a quality firearm is required. Arms of poor quality do not seem to have any investment quality at all.
What say you-all?

Roger
 
They don't provide enough of a return to be called an investment.

Having said that they hold their value better than say a plasma TV which is worthless in 4 years.
 
Like any other form of investing you have to know what a good value is and that the value will increase. There are hundreds, if not thousands, of people out there that bought into the "banic" around Nov. last year and who thought a $1,500 AR was a great investment.
 
If it justifies an expensive hobby/collection, then no problem. But its not a money maker unless you buy and sell a lot of weapons at gun shows for high prices...and thats not too good anyways.
 
I view them as a money pit. If I buy one, I will shoot it...as much as possible.

Example:

My Kimber, I bought it at a steal for $700 a few years ago. I saw one sell for $950 used on gunbroker. $250 profit, right?

Nope. I have no less than 5 or 6 holsters that I've tried for it. A couple are one off, pricey custom made jobs...though my favorite remains a $30 high noon piece. New grips...another $100. Wilson combat mags, 7 of 'em at varying prices...but none were exactly cheap. Now let's add in the 2500+ rounds of ammo. I'm way past that $950 price point all of a sudden.

Granted, I would have went shooting anyway with another gun I already own...but I wouldn't have wasted all the time and money on cleaning, ammo, accessories and supplies on this theoritical one for sale.

All in all, I see your point...the firearm itself has appreciated in value. But in the end, unless it is a safe queen that never gets fired...it costs you. Just like buying a muscle car, you may get a deal on it and it may or may not appreciate in value; but if you use it you're gonna throw money at it, more money than you will retrieve from the sale later on.

Just my opinion...
 
velocette said:
....The only caveat that I have learned is that buying a quality firearm is required. Arms of poor quality do not seem to have any investment quality at all.
What say you-all?
Click to expand...

X-ring.....those purchasing budget firearms are fooled thinking they got the better deal based on price alone.
 
Like any other form of investing you have to know what a good value is and that the value will increase.
Click to expand...
This is exactly right.

I could be rich now if I had any money then, when WWII Lugers, old Colt SAA's, and Winchesters were almost "buy one, get one free". Even like new GI 1911's were going for $35.00 in 1960 when I first got into guns.

Unfortunately, $35 dollers then was just about as hard for me to come by as $3,500 is now.

rc
 
Higher end, historic, limited prodution, always appreciate. Really good work-a-day guns seldom depreciate. Average quality equals average retun. Bargin guns seldom are. my .02 FWIW
 
Not sure about investments as I dont buy guns that I do not plan to shoot... an "investment gun" is a rare, possibly unissued and unfired XXXXXXX or something of the like that you came in to at a relatively low price and get a bit lucky in having it become more desirable and consequently more valuable...

That said, there is not a gun that i own that i would not be able to sell for at least what spent....
 
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Good As Gold??

Gold went from $ 35.00 an ounce in the seventies when restriction on ownership to over $1200.00 in 2010. Example: If I bought an ounce of gold in the 1970's for the price at the time of derugulation $35.00 per ounce and sold it today at $1200.00 that is a 3, 328% profit. Is there a gun sale to compare????
 
It might be a good investment. Until they become illegal and your attempt to turn your investment around is a crime.
Click to expand...

That is absolutely correct. Or, to a lesser degree, if the government makes the sale/purchase/transfer/possession of a firearm (and/or ammunition) so difficult that nobody wants to deal with them. There is a certain group of politicians who want more "sensible" and "common-sense" gun control laws, you know. And those people aren't going away.

They are a major pain to get rid of in the event of your death, especially if you have a large collection ("investment"). Your estate won't get much for them from a commercial dealer, and individual buyers will be a pain to deal with (including possible FFL issues regarding the transfer). And you have to worry about the things rusting or being stolen.

Finally, the market for firearms vis-a-vis other typical investments (securities, real estate, gold, etc.) is limited because the buying population is much smaller. Selling shares of Microsoft is easy; there are a lot more potential buyers of that stock than potential buyers of firearms.

JMHO.
 
cartod said:
The right gun collection can be better than gold.
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Wow, I'd like to see that gun collection.

Firearms as a financial investment? Maybe in the loosest of terms. Now, an investment in fun is whole other story...
 
If you got into the NFA type guns back when they were more realistic price wise, you'd be sitting on some bucks now. I paid $800 for an MP5 in 86 ($450 for the HK94, $350 to have it converted), and sold it "well used" a couple of years back for $15,000. I also have a few friends who bought some nice belt feds back in the 70's and 80's for a song, and made out VERY well selling off what they no longer were interested in.

HK's, as well as other guns covered in the different "bans" also increased in value, but not near as well as the NFA stuff. I paid $450 for a P7M13 when they first came out, and sold it a few years later for $975. A couple of HK91's for around $5-600 ea, and sold them both in the 90's for $2-3000 ea. HK accessories were also very good to me.

As was mentioned though, all it takes is a change in the political atmosphere, and everything can be contraband at the stroke of a pen, and both the republicans and Democrats have already screwed us there. Funny though how the dem's seem to drive the prices up though. Kind of makes you wonder if theres not a strategy there. Naw, "gun people" wouldnt take advantage, would they? :)
 
The full-auto stuff increased because of a distortion to the market caused by closing the registry. Had that not happened, and I wish it hadn't, the full-auto market would likely have remained exactly where it was relative to the conventional gun market. Investing based on hoping for/planning for distortions to the market caused by legislation is a poor investment strategy.
When it comes time to liquidate that investment, things can also get tricky. Stocks, bonds, etc. are easy to liquidate. Guns, OTOH, require you to locate somebody who wants to buy specifically that gun. I've sold guns on which I made a tidy profit, but only after I shopped them around at a couple-three gun shows, advertised on line, etc. Selling everything to a dealer, pawn broker, or what have you , is a sure way to make sure you get a very minimal return on investment (or even take a loss).
Buy them because you like them.
 
Right now you'd better have cash on hand, deflations a comin'!

They are only an investment in my happiness, not my financial freedom.
 
You used to be able to send money to certain banks for a short term period of three years or so, and they would send you a rifle as the "interest" - usually a Weatherby. In reality, if you took your gun money and had invested it in Apple, Walmart, Buffet's Berkshire-Hathaway, or similar - you would be tons of money ahead
 
Before you guys trash firearms as an investment... you might want to check your 5 year return on the stock market. The DJIA is about flat during that time. Your guns probably did no worse, and maybe better.
 
Firearms do tend to gain in value, how much just depends on what, where, how used, etc. they can usually be sold for at or near their value, provided they are still in decent shape, at any point. For example, i have a 3 band enfield that has been passed down thru the generations, it was purchased prior to the civil war by my great grandfather for around $9.00 its been repaired some over the years. (expertly) still shoots, is probably still 60%+ clean. the ramrod has been replaced. (the original ended up in his eye). but im sure i could get twice that now, maybe more. I have a 1911 government model dad purchased at the bx for $15. its still 90%. a good 45 can cost a grand. a solider I knew stationed in Germany found a 1 of 15 presentation grade Luger, Hitler had made as gifts, wrapped in a grease soaked rag, in an old barn. He retired on that one. Mel Torme bought the only Sears presentation colt 45 that later sold for like half a mil. guns can be an investment, but you have to understand the market. Now, if the lights go out, and the food stops rolling into town, and the phone doesnt work, whats a raven 25 worth?
 
Post 10 got it right.

My boss has about a half mil tied up in guns, buys and sells and makes real good money at it. But he has been doing it for 40 years
 
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