Firearms - As an Investment

[Hatterasguy]

Guns may or may not have the investment value of such things such a land or gold, but both of those are "pure" investments that you can hold, but not really use - unless you build a house or make other improvements to the land.

I call shenanigans, you can make more money in real estate with a pen than with a hammer. I know a guy who made $200k on a condo development in 9 months with a pen from his office. Only visited the place once for 5 minutes.


Its hard to make that kind of money on firearms, but I'm sure someone does it. Guns would be a good investment if you bought a lot of them and sold them. I think arms dealing, more so to country's than people is where you can make money.

 

[wishin]

This really got me thinking about much of an investment firearms are. When you look at how much they cost in relation to the rest of life's 'everyday' functions, they are actually a steal IMO. Someday my child/children will inherit my collection and hopefully they can pass it to their children. What an investment. You are supplying happiness, friendship, a hobby, and more when you purchase a gun. There isn't much else in life that does that, at least that I have experience with.

I just think that's awesome.



/rant

I like the way you think. I've had true investments over the years that were not as wise an expenditure as my guns.

 

[Officers'Wife]

But my gun purchases are based on knowledge, not gambling.

I knew an O-2 that said similar about blackjack.

 

[IlikeSA]

I think firearms can be an investment. Look at how much they have risen in price in the past few years. Ammo can also be an investment. While I don't condone it, people have been buying ammo and reselling it for a much higher price. Will it ever get a return like smart-invested money or real estate, probably not. But a profit or at least break-even can be turned given a few years. Think of SKS' 5-10 years ago, and what they run now. I bought a Chicom one from a friend for a little over 200 a few years back, and see them running for 300 plus on gunbroker.

 

[Rembrandt]

Two words......"Paper Trail". If your intent is to pass items of value to the next generation or to avoid capital gains taxes then firearms become an even better part of your portfolio. Items such as coin & stamp collections, antiques, and heirlooms have no paper trail as do real estate, autos, and stocks. This is also one of the reasons people are securing gold in record amounts.

 

[JoeMal]

To those who immediately think MONEY when I said investment; sorry, I didn't necessarily mean money. Sorry for the loose term usage...no, I don't expect to get rich off of my gun collection someday. This is not an investment like a house or piece of property would be.

I was, however, referring to the investment into the future you are making. You are investing in fun and enjoyment for years and years and years and years and years.


If I was thinking about making money, I would not be spending my money on guns :banghead: I fully understand how these depreciate in value and you spend money on ammo/range time/supplies etc. I get that. I'm not referring to the monetary value of guns. I don't expect to sell my $500 Glock for $1000 someday, that's not the point.

Once again, investments aren't always monetary. Maybe for you Wall-Street guys, but not I

I get what the OP was trying to say. I think that firearms are more of "money well spent" than an "investment". I had a friend just the other day trying to convince me to buy an ipad instead of a new gun. Why would I want to spend $500+ on something that will be completely obsolete in a few years, when a well taken care of firearm will last my lifetime and be passed on to my children?

Pretty much this

A good gun is an "investment" in personal safety, recreation, and, if you're lucky, family bonding. It won't increase your personal wealth, but I'd say the return is more than adequate.

Yesssss +1

Yep, the word -investment- is often misunderstood and consequentially misused. More often than not the word "liability" should be substituted.

Liability? I don't think my guns are a liability...that's not really what I'm talking about at all And I don't believe I'm misusing or misunderstanding the word investment either. Once again, all investments are not monetary.

The time and devotion put into raising a family certainly does not bring you money in return, but it sure is an investment.

Now if you want to indulge yourself in a hobby buy guns’. In-fact if you have enough guns you can take the land, diamonds, and gold from those who bought it in the first place. Awe come on someone was going to say it

Now that's what I was trying to say

I like the way you think. I've had true investments over the years that were not as wise an expenditure as my guns.

We all have. THAT is what I'm talking about.

 

[leadcounsel]

I agree that firearms are a good investment. Provided you purchase them at lightly used and generous discount (generally about 10-20% below retail), you'll never lose money provided you take good care of it. It will appreciate with the COLA. What other consumer good that you can use and is so handy can you say the same for?

Look around at every other tangible thing you own: Your car, washing machine, refridgerator, couches, bicycle, TV, computer, etc. All of these are worth a LOT less after you buy them (and if you're smart you buy them used too).

Over time, I think that HOLDING their value IS a great investment for personal property.

 

[Mightee1]

I am not too sure if they are good investments, but they hold their value comparatively well. A gun that was $500 NIB can be sold off in a pinch for at least $400 at nearly any time. That's all they do is tie up some capital.

 

[stonecutter2]

One thing I am certain of - guns resell at a far higher amount then jewelry/gems.

As for the OP, I completely agree. Firearms are expensive, but for what you're paying - you're getting a lot of years of enjoyment from that expense AND you have something that your family might value and/or treasure once you're gone.

It's not the same as passing a coin along - a firearm is something you've used, and it encourages the next generation to use it and take care of it - very much like a fine musical instrument, in my opinion.

 

[JoeMal]

It's not the same as passing a coin along - a firearm is something you've used, and it encourages the next generation to use it and take care of it - very much like a fine musical instrument, in my opinion.

That is a great analogy and I couldn't agree more.

 

[Officers'Wife]

Firearms are expensive, but for what you're paying - you're getting a lot of years of enjoyment from that expense AND you have something that your family might value and/or treasure once you're gone.

Up to a point, my prize possession, is the rifle/revolver combination my great-grandfather bought sometime just after the turn of the last century. He probably paid more for the holster and belt than he paid for both weapons. Still, when I fire the rifle it's a link to an ancestor that died long before I was born. Quite frankly, the value of the weapons now is probably less than half of what they were worth in '02' adjusted for inflation. But they are priceless to me in that my father taught me to shoot with them as his father did for him and his father before. This is not something that can be expressed in dollars and cents on an investment portfolio.

 

[Zoidberg523]

Your point was the idea of firearms as a legacy, your language defined them as an investment. The two concepts are very much at odds with each other in every aspect but real estate.

Must everything around here be a game of semantics? It is quite obvious that the OP means that per money spent, guns have more yield than almost any other product. And, there are other things to invest than money - time, energy, emotion. Guns provide fun for future generations, and provide a lifestyle which you can hand down to a child, and which they can inherit, at very little actual cost.

Investments should increase your net worth, and unless you only buy safequeens, the cost of shooting alone puts one into the red. IOW, for those that one enjoy shooting, the initial price of the gun (and therefore investment value) over time becomes insignificant compared to range fees, ammo, gas, etc.

I don't think you meant to make the OP's point for him, but you did. Compared to all of those other things - range fees, ammo, gas, etc. - guns are the best short term investment. The cool part, the part that I believe the OP is talking about, is that these relatively cheap, short term investments, can, with little effort, be turned into long term investments! Something that cannot be done with many things (cars [unless already collectible or super-expensive], TV's, CD's, etc.).

I got what you mean OP, and I feel the same way. There are more important things than money, and a firearm is an investment. An investment in your time, your safety, your heritage, your legacy, the list goes on. There many other (and better) things to invest than money. Smiles, happiness, fun, love, passion, excitement - these are worth more than money, and a gun brings all of those and more for little true cost, and for hundreds of years.

 

[marv]

Question for desidog. Where can you put money nowadays that it will double in seven years?

 

[JoeMal]

I got what you mean OP, and I feel the same way. There are more important things than money, and a firearm is an investment. An investment in your time, your safety, your heritage, your legacy, the list goes on. There many other (and better) things to invest than money. Smiles, happiness, fun, love, passion, excitement - these are worth more than money, and a gun brings all of those and more for little true cost, and for hundreds of years.

Couldn't have said it better myself (literally, apparently :banghead: )

 

[22-rimfire]

Great discussion about firearms, value, investment potential, wealth accumulation, the gun hobby, and so forth. I have read every post which is unusual when they can be windy.

I think guns are a poor investment and have very poor liquidity. I have collector stuff. Years ago, I was convinced that I could make money with art and firearms. Well.... I have spent a a fair amount of money, and have just accumulated a bunch of stuff that is hard to sell at market prices. What have I gained? I can say I have all this stuff, but the stuff does not pay any bills, or particularly used as collateral to borrow money. So, the only way to make money is to buy and sell, buy and sell.... the price does not matter as long as it increases and you can sell it quickly. That is the gun business!! Hoarding guns for a lifetime only to have your children sell them for the bucks is not investing.

I think guns are more of a legacy kind of thing. Your kids may have no idea what things are worth after your being involved with the hobby for a lifetime.... they may have little appreciation as to what it took to build the collection. They often only see dollars. The favorite question is Dad or Granddad, what's that worth? Wow! Wife's favorite statement is ... why don't you sell some of that stuff and we can buy a car... or go on a trip.... or remodel the house..... Life is full of stress and you can shoot your collection to help relieve stress!

 

[Lakeshore]

Agree ^^^, this thread has been an enjoyable read.

For me future investment value in terms of dollars and cents is not a big factor in my gun purchase decisions. Sure it's nice if they retain some value, or even increase a little, but I don't sell or trade my guns so I don't worry much about that aspect. I just enjoy shooting and tinkering with guns and hanging out with the other gun nuts at the range.

My heirs will get to find out what, if anything, my guns are worth. Maybe they'll just keep 'em around as interesting paperweights.

 

[HGUNHNTR]

Liability? I don't think my guns are a liability...that's not really what I'm talking about at all

Liability in the sense that you will probably lose money if you sell your purchase. Liabilities are those purchases that typically depreciate in value. ie, cars, guns, etc. Yes there are exceptions but they are not the rule.

 

[BLACKHAWKNJ]

The biggest drawback to firearms as an investment is that they are fairly illiquid, if you are unable to sit on them or experience a sever need for ready cash you may have to seel them, if not at a loss then for less than you may have gotten otherwise. Same thing with real estate.

 

[22-rimfire]

I have been watching a program on the History Channel called "Pawn Stars". It is kind of a fun show to watch and there are a few guns that are bought and sold. The reason I bring it up is if you are trying to make money in the gun business, you have to sell. You buy and then you sell at a profit. Take the money and invest it again in more guns. Eventually, your whole collection will have cost you nothing (meaning you don't have any new money invested in the firearm). That is the fun part.

The non-taxable aspect of firearms is interesting. But you can buy art, gold or silver and have the same thing. You never get market prices for gold or silver. You pay market. It is much like guns and you hope it is an appriciating investment when you decide to sell. Guns for the most part keep you from loosing vast amounts of money as does gold and silver. Art is another matter. It is not for the novice.