Firearms, Investments, etc...

[bogie]

Campers, I'm going to be inheriting some cash sometime this summer... I'd like to place varying percentages of it in some investments of varying security... Going to use part of it to do the downpayment on a house, so that's covered...

So, hey, if you had $5-10,000 for investment firearms, what would you buy? What would you avoid? (ain't no way I'm gonna touch _anything_ that is advertised as "pre-ban")

Part of me wants a sten or M11/9, but that part is also concerned that our congresscritters will offer me "fair market value" of $50 take it or go to jail at some time in the foreseeable future...

With investing in firearms, what sort of return will one see over a period of years - have any of you charted your collections in this manner?

Please, no discussion about value of said firearms in the event TSHTF, zombies walk, or other scenarios - That's why I've got LOTS of ammo, powder, primers, and the toys I already own...

 

[Old Fuff]

Da rules - according to Fuff, who has been at it for a half century.

1. Always buy quality. Good stuff goes up, the rest doesn't, unless it's so rare condition doesn't matter.

2. It is generally a good idea to stick to known (and popular) makers.

3. Generally buying factory commemoratives doesn't bring much return.

4. Recently discontinued, high quality guns may represent a good buy.

5. Watch for Mil-Sup. A certain model may flood the market for a short time, but then they will go away. During the 1960's a like-new Brit. SMLE could be bought for as little as $15.00. Today it would go for $200. or more.

6. Quality antiques are not subject to most firearms laws, and seem to go up the fastest of all. Next are high quality classics.

7. Unless you have a lot of storage space a few excellent guns may be better then a lot of poorer ones.

8. Cased or boxed handguns with original papers and accessories are worth more then an equal gun without. Sometimes the difference is substantial.

9. Buy from reliable dealers with a known reputation.

10. Buy reference books and learn about the background concerning the guns you might buy. Knowledge equals $$$$$.

 

[10mmman]

I did a comparison in 2002-

Hk 93 back when they went for $675 w/folding stock VS. the median large cap mutual fund. $675 in the stock fund after taxes and fees would have bought 6 or 7 $3500 93s in 2002. You may get lucky, but it’s really just a way to rationalize gun purchases. Don't confuse use assets for investment assets. Especially those use assets whose marketability/liquidity is opposed by half the politicians in the country.

X

 

[Art Eatman]

Good advice from both the above. However, it helps to pick the right mutual fund, and future returns probably won't rsemble those of the 1990s.

I'd sit on the money for a while, spending some on books (Fjestad's Blue Book, e.g.) and doing some browsing around the Internet. There are several places which cater to high-value collector guns, and I imagine these will be worth more in the future. Check oput some of the ads in Shotgun News and Gun List. "Browse and learn." Never be in a hurry to spend money. It goes out a lot faster than it comes in.

Art

 

[Rembrandt]

Money invested in stocks, mutual funds, etc. generally doubles every 7 years....due in part to compound interest. You won't see that in firearms unless you're buying class III items. In recent years they have done quite well.

My rule of thumb is this....(1) buy high quality, (2) must have low production numbers, like one of 5000 built etc, (3) buy classic designs, custom work by a noted master, or owned by a celebrity.

 

[Kingcreek]

my policy...
Buy high quality.
Buy something that really appeals to you. That way if it fails to bear financial fruit, at least you are stuck with something you like.

 

[Trebor]

If your state allows it, invest in full auto weapons. With the artificially limited supply and constant modestly growing demand, their the way to bet if you want to use firearms as an investment.

I can't give you help as to what specific model to buy, except to say that quality and desirability are still a concern. I think something like a nice,original Thompson would increase in value faster than a Mac 10 or tube-gun Sten.

 

[marklbucla]

There was a post a couple months ago about full auto weapons as awesome investments. I'm not sure what to search under to find it though.

 

[redneck2]

Guns versus investments...

I subscribe to a newsletter that has 3 levels of investment (agressive, moderate, conservative)

Over the last 15 years the agressive portfolio has returned 889%. Tough to do that with guns, though as Art said, we've just seen the biggest stock market run-up in history

Back to guns.....Colt, Winchester. Old guns, good condition or unique (owned by someone famous). Rich people always are rich. Guns that appeal to us common folk may or may not have demand at a given time

If you want info on the investment thing, pm me. HTH