Guns: an investment or money pit?

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I suppose it depends on the gun and the person. My Python is worth more than the $700.00 I paid for it a few years ago. However, last year I bought a CZ-452 from Buds for $375.00. Six months later, I tried to trade it for another gun and Bud's would only give me $200.00 on trade.(That deal didn't get made.) I've always looked at guns as tools or toys.
 
Not if you keep a list of serial numbers and models (and estimated cost) in the will. For folks that have literally thousands tied up in firearms, it really makes good sense to keep a tally on it. You wouldn't leave a full savings account or stock portfolio out of a will, would you?
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I think you should keep a list. But your heirs will be free to do with them as they please. If that troubles you, you need to plan ahead and hopefully liquidate the accumulation or most of it prior to some projected date. On the savings account... my Dad did exactly that..... everything went to the evil step mother even though that was not his wish.

Good price on the CZ-452 KY Larry. $200 is about what I would expect from a retail gun shop whether I like it or not. They'd probably sell it for around $400. That's the gun business.
 
Anyone can come up with an example or three of guns that have gone up significantly in value, and were comparatively a good 'investment'.

Unfortunately, those are called 'outliers' and don't reflect the whole of firearms values over time.

It is the same reason that a 1970 Challenger is a collector's item and a 1970 Ford F150 isn't.
 
There are many guns that are considered "investment guns" at this point. Many Colt revolvers fall into this cataogory. Some might be under valued still. The reason is Colt no longer makes any DA revolvers or were an uncommon production varient. They were desireable when they were in regular production. A lot of people like them which is the most important aspect.
 
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Anyone who "invests" in firearms needs to go educate themselves on how to invest.
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I know many people who lost their life savings in stock market "adjustments" and the dot-com meltdown. The so-called investment experts are also dice rollers and you can easily lose your entire savings. Using guns as an "investment" may be the wrong word but having money tied up in guns is also a hedge against inflation as well as having tangible items that can be sold easily for cash, if needed.

It's been said but once used guns find their level of value, they pretty much remain there over time. A new Glock may get $550 and a used one $400. The $400 used Glock will get you $400 over time and may go up a bit over a long time (not with inflation) as new Glocks rise in price. A used car goes down in value with every mile driven and month that passes. Not so with guns. If you had $100K in "work guns" before the market and dot-com crash you'd still have $100K+ today. If you had your money in stocks, you'd have $25K today. So, guns aren't an investment but they are a hedge against a wild market and not so predictable future investments. Not ideal but not stupid, either.
 
Not if you keep a list of serial numbers and models (and estimated cost) in the will. For folks that have literally thousands tied up in firearms, it really makes good sense to keep a tally on it.
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It's not a good idea to put this kind of detailed information in your will. When a will is probated, it becomes a public record. Do you want the whole world to know exactly what guns your heirs have? Besides that, your holdings may constantly change, and then the will would have to be constantly updated.

Instead, put this detailed information (inventory list, estimated values, etc.) in a "Letter of Instructions." Leave this letter in a safe place (not in a safe deposit box in a bank, which may be sealed until your will is probated) and tell your heirs where it is. BTW, the Letter of Instructions is also the place in which to specify your desired funeral arrangements, etc.

The will can specify who is to inherit, in more general terms. If you want it all to go to your spouse, it's very easy. Just leave the "residue" of the estate to her. In fact, if you want all your property to go to your spouse, you don't even need a will. In that case, your estate goes into "intestate administration" and is distributed as provided for in state law -- usually it all goes to the surviving spouse. Or, you can avoid all the this mess entirely by putting all your property in joint names or using trusts.
 
Most lost about 40-50% on the first "crash". Those investments had just recoved and there was another "crash". It's hard to win unless you buy sell, buy sell and even then it is still very hard. But you at least pocket the gain and re-invest. You do the same thing with firearms.

That is how dealers win. I know it's hard for them too. But when you get an attachment to a firearm or "thing", it is very hard to sell them regardless of value. Dealers generally don't care. They buy at a price they believe they can make money and immediately sell it. Repeat Repeat Repeat. They are chasing the market up and theoretically could be selling the same gun several times.
 
My gun values are doing much better than my stocks this year! I've lost about $15K on stocks this year. (Tech heavy)

My firearms values went up, overall. Most of those I don't really count as an investment, though.

The real "investment" I've made is in 50 BMG ammo. I bought thousands of rounds and tens of thousands of components years ago (the specialty stuff, AP, API, APIT, Tracer, etc). The price on those has significantly gone up. Now, if I can make it between now and "retirement" without USING it... That's the real question. :)
 
I had a good friend a few years ago [he has since passed on] who had the most complete collection of Ruger relvolvers I have seen. All were unfired and hav never even had the cylinder moved [had ty wraps in all cylinders and triggers] the collection sold for three times the original cost . All were bought individually and sold as a complete collection. So all in all a very good investment.
 
I don't think of them as investments. Buying used makes more sense to me. The shop person is off base regarding he needs to sell new to make a living. There is little margin in new guns. A shot that sells used can often make more profit on a used gun. Where I lie, the shot owners state they will pay you 60 percent of what they can sell it used for.
 
Investing in guns is a lot like investing in gold. You may never recoup your entire investment but neither will never go to zero value ( at least as long as you take care of your guns ) and if our economy and country should ever go to pot then they may be the difference between surviving or not.
 
I don't consider them an investment or a money pit. It's a hobby to me, pure & simple. You have to spend money on your hobbies if it's collecting butterflies, growing a garden, putting together model airplanes or collecting guns. It makes us happy and at least for me, money has very little to do with it.
 
I've made a profit on every gun I bought and then sold or traded - new or used. At the last gun show I had a table at, I bought 3 firearms and then turned each of them around for a 100% profit within three hours.

Find a deal, buy it, trade or sell it for more than you paid. It's not that hard.

Regretting the sale later is the only tough part...
 
rimfire - it's a curse and a blessing - when I'm stuck behind the table for two days solid, I can't go look at every other table and spend a fortune.

I have to stick to the deals that float past me - sometimes I have to restrain myself or I'd leave with more guns than I brought to sell!
 
With things the way the are with the present administration, and congress, a stroke of a pen could turn them all into contraband.. What's that worth?:fire:
 
It's not a good idea to put this kind of detailed information in your will. When a will is probated, it becomes a public record. Do you want the whole world to know exactly what guns your heirs have? Besides that, your holdings may constantly change, and then the will would have to be constantly updated.
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Mainly, I think it's important to keep a (fairly) up to date record/cost of the firearms you own somewhere (safe deposit box, if you aren't comfortable with the will) so a grieving widow doesn't foolishly squander her inheritance out of ignorance. She wouldn't sell the stocks you left to her for .10/dollar, why the guns? Because she doesn't know their worth.

It's also a wise decision to have homeowners insurance on expensive gun collection. You typically won't even have to specify what you have, just that you want protection up to a certain level. When you go to claim, you will need proof of what you once had and its value, though. A hoard of gold won't burn down in a house fire, but your guns sure will :eek:

TCB
 
a lot of what determines whether a gun is a investment or a pit is how you buy it.never buy a gun unless you know exactly what it is and how much it is worth.

never buy a gun new or from a dealer or store.unless it is something you really want or have a good use for. and then dont expect to make money on it for many years.

always buy high or medium to high qaulity brands with good owner loyalty and name recognition.that plastic pistol or plastic stocked cheapo deer rifle is not a investment but may be a perfectly fine gun for useing, but is not a investment.

only buy guns from motivated sellers who will work with you on the price.ideally,someone who has no idea what they have and what it is worth is your best bet.this has become much harder due to the internet.you will want to pay out 75 percent of current market value at the most and plan to hold them at least a year maybe 10.

do not buy guns unless you have the disposable income to do so.dont spend the rent money on a gun, stuff happens.

be creative, ive purchased many guns from people by saying,"ok if you sell yur gpas gun to me for x amount, ill sell it back to you within a year for same price", they always say they will come back when they get on their feet but they never do.yu will see them next week driveing a new car but they never say nothing about that gun.

i know some of this may sound a bit harsh but im a honest man who doesnt take advantage of widows, the infirm or the mentally ill. if i sell a gun i offer a unconditional money back gurauntee,yu dont like it, its broke, yu think yu got screwed,bring it back and yu get all your money back.never had one come back yet.
 
I suppose it depends on the gun and the person. My Python is worth more than the $700.00 I paid for it a few years ago. However, last year I bought a CZ-452 from Buds for $375.00. Six months later, I tried to trade it for another gun and Bud's would only give me $200.00 on trade.(That deal didn't get made.) I've always looked at guns as tools or toys.
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Bud's would not give you the full "value" of the Python either if you tried. There is a vast difference between retail and trade-in and when you trade-in a gun, they have to resell it. If they give you full value, they can't resell it and make money.

When folks like to talk about how guns always go up in value, I think GLOCK. Great gun, but not a great financial investment. In fact depending on when you purchased yours, you may be able to replace it now for less money.
 
I dont think that there are many guns out there that would be an investment. If I was buying guns purely for investment purposes, I wouldnt have any of the guns that I have.
 
Two different things Tak.

Buy the guns you want/need/have to have to keep.

Buy investments that you know you can get a great return on to fund the former. As an example, Mossy bolt action shotguns are trending popular as a collectible. Like Stevens double barrel shotguns that you could get 5 years ago for $75 that are now selling for $300-400. They need to have good blue on them, nice wood, and the select-choke feature. 12 gauge is good, 16 gauge is even better, 20 gauge - not so much.

I bought two Mossy bolt actions over the last 4 weeks. One for $65 and one for $80 - they both sold the same day for $170 and $180. The sellers didn't know the value of what they had and I knew I could find buyers willing to pay a good bit more for them.
 
You are not far off. my uncle had a S&W model 36 he carried for decades till he died. It then went to my aunt. Before she dies she gave it to ma and asked me to put in her casket with her when she died.
At the funeral, in the church, the casket was open and waiting for the right moment I went up and put it in beside her.
She got her wish.
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At Dad's funeral last June I dropped in a hard pack of Winstons and a PBR for the road. I kept the bring-back P38 and 56 Marlin 39A.

(Of course Dad never asked to be buried with those things and kudos to you for seeing your aunt's wishes though.)
 
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