Are guns a good investment opportunity?

D

David Blinder

New member
With all the talk about limiting firearms purchases, does it make any sense to buy a variety of generic pistols (1911's, j-frames, whatever) for later resale? Seems like if they are going to get scarce and/or harder to get, prices should in theory rise. Any thoughts?

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My idea of gun control is watch the front sight and use both hands!
 
Blunder, I would think if anything happened to take away more of our rights, that along with it would go more efforts to limit the opportunities of anyone trying to make a dollar.(at least, legally)

I would think that more money would be realizied in the ammunition resale arena.
Ex: When SKS's were first out, a case of 7.62 x 39 was very cheap. When they were clasified as "assult weapons" and people thought that they would be banned, the price jumped through the roof.

Just my thoughts.

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jones
"permits, we don't need no stinking permits!"
 
Unless you are planning to get a FFL and go into business legally, don't think of firearms as a money-making opportunity. Do it for love, for sport, for all the wonderful things you will learn and the interesting people you will meet, and be prepared to spend money. A loss in $$$ but a gain in knowledge and friendship is what makes it a worthwhile hobby. True, occasionally, a piece may gain in value and garner a few extra bucks, but that event is rare.
Usually, if you need to sell to acquire something else or pay a few bills, you will incur a loss. Thus, one should buy often but sell rarely. I make this assertion despite frequent horse trading.

Enjoy it for the intangibles it brings--not the bucks. Besides, the law is murky on when you are "doing business" and thus need a FFL to stay out of trouble. Avoid this problem by going licensed from the start or treating it as a hobby, which means it costs you money.

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Thomas Hobbes: "The reason I help the man is that by doing so I end my discomfort at seeing his discomfort."
 
Legal guns are expensive. Banned guns are invaluable.
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Ask a Warsaw Ghetto dweller in '43 what an MP-40 would be worth to her?
 
I don't know about the investment opportunity, but I bit the bullet
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and picked up a Ruger Blackhawk, Kahr MK9 and Colt 1991A1 this last weekend. I generally prefer to spread my purchases out over time, but could see all of these getting screwed up if Gore gets in. I mean who wants a computer controlled 1911 or Blackhawk? I could also see the Kahr being banned for stupid reasons like its too small or whatever. So I bought 'em all.

BTW Please don't tell me about politics. I don't own any politically correct guns, i.e. one S&W (pre sell out), 3 Rugers (I used to not even allow somebody else's Ruger in my house, much less own one, but...), the Kahr (somebody at Glock Talk goes off about boycotting Kahr because of the Moonies) and the Colt. Sigh.

I'd say buy what you want while you can get them.
 
Blunder...

YES, to answer your question.

If you pick up a current "Blue Book of Gun Values", you'll notice it is prefaced by a series of editorial articles by several experts in the gun culture. Read the one about guns as an investment, it is excellent.

There aren't too many investment vehicles today that have as much predictability as firearms (at least certain firearms). Especially when one takes into account the current/future legislative restraints. Supply and demand are what drives markets higher (or lower), and history tells an excellent winning tale about firearm prices.

The Blue Book article outlines the types of firearms which will be the best investments, and I agree with about 85% of what he suggests. I'd exclude any firearm that doesn't fit the following basic criteria; these items MUST be the PRIMARY weapons of a civilian army, and the ones that are most likely to be under constant attack by the anti-freedom crowd, and lastly, they should be of a standard readily available caliber, preferably NATO (ie, 9mm, .45, .223, .308, & 12 guage). These include; 1) combat handguns (I'd add that these should be the type that are high quality and are capable of taking high-cap mags), 2) assault type rifles (I'd add that they should be the most "hated" ones...pre-bans with all the frills, but of high quality), 3) combat type shotguns (again, the ugly pre-bans like the street sweeper and SPAS folder are the ones to look for). His other suggestions made no sense to me, so I won't discuss them here.

But I will add, that it isn't just the firearms (mentioned above) that make great investments, it is the accessories as well. Just about any factory accessory that is no longer available to the civilian market should be included (mags, scope mounts, bi-pods, etc.). You could also justify an investment in ammunition that has been banned by legislative action (armor piercing, Black Talon, tracers, incendiary, etc.).

You do not need an FFL to be a collector, anymore than you need a doctoral degree to collect antique furniture. Most states have excellent gun shows and some even have newspapers that still list firearms in the classifieds. There is the obvious necessity of keeping all purchases between private individuals only. Your private property is of no one's business but yours, and it MUST stay that way.

Don't let the already high prices scare you away. They'll only get more expensive down the road. The worst that could possibly happen is that when the SHTF, you end up arming your entire neighborhood...maybe even trade for a bigger house.

And lastly, buy a good safe.
 
Blunder...

YES, to answer your question.

If you pick up a current "Blue Book of Gun Values", you'll notice it is prefaced by a series of editorial articles by several experts in the gun culture. Read the one about guns as an investment, it is excellent.

There aren't too many investment vehicles today that have as much predictability as firearms (at least certain firearms). Especially when one takes into account the current/future legislative restraints. Supply and demand are what drives markets higher (or lower), and history tells an excellent winning tale about firearm prices.

The Blue Book article outlines the types of firearms which will be the best investments, and I agree with about 85% of what he suggests. I'd exclude any firearm that doesn't fit the following basic criteria; these items MUST be the PRIMARY weapons of a civilian army, and the ones that are most likely to be under constant attack by the anti-freedom crowd, and lastly, they should be of a standard readily available caliber, preferably NATO (ie, 9mm, .45, .223, .308, & 12 guage). These include; 1) combat handguns (I'd add that these should be the type that are high quality and are capable of taking high-cap mags), 2) assault type rifles (I'd add that they should be the most "hated" ones...pre-bans with all the frills, but of high quality), 3) combat type shotguns (again, the ugly pre-bans like the street sweeper and SPAS folder are the ones to look for). His other suggestions made no sense to me, so I won't discuss them here.

But I will add, that it isn't just the firearms (mentioned above) that make great investments, it is the accessories as well. Just about any factory accessory that is no longer available to the civilian market should be included (mags, scope mounts, bi-pods, etc.). You could also justify an investment in ammunition that has been banned by legislative action (armor piercing, Black Talon, tracers, incendiary, etc.).

You do not need an FFL to be a collector, anymore than you need a doctoral degree to collect antique furniture. Most states have excellent gun shows and some even have newspapers that still list firearms in the classifieds. There is the obvious necessity of keeping all purchases between private individuals only. Your private property is of no one's business but yours, and it MUST stay that way.

Don't let the already high prices scare you away. They'll only get more expensive down the road. The worst that could possibly happen is that when the SHTF, you end up arming your entire neighborhood...maybe even trade for a bigger house.

And lastly, buy a good safe.
 
Whether are not they are a good investment is secondary to the fact that you must let your wife believe that they are!
 
IMO, you should buy gun(s) because you like to shoot or collect them for pleasure. I think there are better investment opportunities if all you're interested in is the money.
.
 
Picked a gun rag from 1981 at the range the other day.

H&K Mod 94 (semi MP-5) $625 fixed stock, $675 retractable stock. Price these lately?

Steyr AUGs $650 in 1984, seen for over $4000 lately.

Seems that every pre-86 imported semi has gone through the roof. So yeah depending on the model, price and most importantly the political climate they can be excellent investments.

If only I could go back in time!

Gator
 
Well, I may respectfully differ with a few folks.

Take the Steyr AUG example. Using swampgator's numbers, this works out to a little more than a 12% return, compounded annually. The accepted 'normal' equity (stock market) return is a bit over 10% - lots more in the last decade. And, that is one firearm, and a fairly exceptional one I believe.

Like many classic cars, often such investments only look good if you don't compare them to the alternatives.

I'm sure we could find unusual and more collectible pieces that have a higher rate of return ... but, I think those are the clear exception. And, the part in the Blue Book that troubled me (and, I'll bet Paul as well), was the writer's advice to buy 'unusual' calibers. I feel the same as Paul ... I want firearms that have readily available and relatively cheap ammo. 9mm, .38 Spl, .357 mag, .223, .308, etc. I just feel that any firearm I own should be capable of being pressed into defensive duty.

But, another way to view this may be from a standpoint of investment diversity. Firearms provide some inflation hedge, are generally prized commodities, serve a potentially life saving purpose, represent an educational opportunity for kids [that will drive the anti's crazy
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], and can be used to gather food.

So, I see firearms as rather a cross between a commodity investment and an insurance policy. The highly collectible ones are more like numismatic / rare coins. Tell your friends that your guns 'serve a unique niche in my investment portfolio'. That'll get 'em.
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Regards from AZ
 
I am concerned about a total ban and confiscation of firearms. First the handguns, then the shotguns and rifles. Look at what is happening in Massachusetts. I went to my gun dealer. His handgun shelves were threadbare displaying only S&W handguns since they are the only manufacturer that presently complies with Mass regulations. It made me sick. Look at Australia, Canada
Herb
 
I just don't have the money-making touch when it comes to guns. I've never made a nickel off any gun I've sold or traded. Plus, when I sell or trade at the gunshop, I get the wholesale value or less, whereas I paid retail. No doubt the guns would be worth more if I sold them directly to other individuals.
 
I'm not 100% certin they are good investments,but,I have enough invested. I believe as posted in one of the other responses that the only way to make any money is to sell private. Another way is if you make a truely unbelieveable purchase, Such as a 1911A1 Colt mint for $75. and sell for $700-$800. Then you had made a good investment.
As far as illegal confiscature by our government,I only hope I have had enough time to have dumped mine in the Atlantic,Make them disappear so they can't get their hands on them.
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I think my son will have more to worry about that then me
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Just some of my rambling thoughts
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Happy Shooting
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We preserve our freedoms by using four boxes: soap,ballot,jury, and cartridge.
Anonymous
 
I don't think that they are much of an investment, mainly because if the anti's have their way, at some point, the government is going to offer you a fair market value of about $50 to "buyback" (?) your guns from you after which it will be completely illegal to own them. Now if you can round up a bunch of nonfunctioning or otherwise cheap crap for about $10-20 a piece and turn in to one of these do-gooder orgs for $50, then you might make a little, but "no questions asked" might soon turn into an investigation of "an illegal arms dealer."

"when in doubt, empty the magazine!"
bergie
 
It is against my religion to sell guns, but i'll say this... I picked up a NIB USP45C in November 1998 for about $525. Today, in the same shop, a NIB USP40swC is going for $699. (Not that i can buy it thanks to the Massachusetts AG... so i guess the point is that my 1998 USP45C is PRICELESS now.

~USP
 
Willy is correct ie Class III being the best investment. I used two examples earlier in the H&K 94 and Steyr. Most 94's were converted to MP-5's early, and are one of the valued MP-5's (coverted versions) and they are going upwards of 5K.
I heard recently M-16A1's going for close to 6K.

Too bad I can't justify spending that much for a firearm.

Gator
 
I think an interesting twist on the investment theory is to look at availability. If you think all new guns in a couple of years will be "smart guns", and will have all of the Klintin accessories such as mag disconnectors, unable to accept hi caps, etc, then today's guns may become another version of "pre-bans", and possibly have some appreciation potential.
 
no,unless you're pretty sure that the gov't. will ban/limit that particular investment soon; in my case back in '93, when clinton hinted that there may be a limit on assault weapons sales, i(w/ a ffl partner) bought 24 dozen of the maadi aks-> we doubled our investment the next year w/ just dealer to dealer sales;imo, it's only a good investment
(w/ respect to other investment alternatives)
if you can liquidate it profitably w/in 2 years or its intrinsic/protection value makes it invaluable;i do agree w/ the previous posters re: class 3 firearms->mp5s nib have doubled since '98;colt m16s nib are increasing too but that's too expensive for me;sorry for the long post but i'm new to this excellent forum(btw, if you read the business wire, zacks & other free investment sites on the net every night, your decisions the next morning may buy an mp5 that same day->last monday);good luck.
 
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