guns as a "commodity"

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joyflnzz

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In anticipation of a future devaluation of the dollar, I am interested in buying handguns to store in my safe. I could buy gold, but am hesitant because gold is already priced high. I think guns have lots of up-side, especially with an election and possible instability on the horizon.

My question is... what handgun or class of handgun would be the best investments? I am considering Glock 17/19 and Smith/Ruger/Colt 38/357 revolvers. Would love input from those more experienced with buying, selling and trading handguns.
 
joyflnzz said:
....Would love input from those more experienced with buying, selling and trading handguns.
Click to expand...

With guns, I only have experience buying.....don't sell or trade. I agree that ammo would seem to be a better hedge, since it's a consumable the existing supply would always be declining.
 
I know a tin-hat wearer,,,

He has several (10 or more) inexpensive (Heritage brand) .22 revolvers buried around his property,,,
Each one is sealed inside a piece of 8" PVC pipe,,,
Along with several bulk packs of ammo,,,
And a few minor medical supplies.

He says that "come the revolution",,,
Those buried revolvers will be worth more than gold.

Who knows,,,
He might be right. ;)

Aarond
 
Very few Glocks will ever be classic collector handguns.

They are spectacular working handguns but that's about it.

Plus the design was so right on the money when it came out-today's Glocks are pretty much only changed for ergonomic reasons.

If you are determined to get into gun collecting for investment reasons you will need to read a heck of alot and learn a heck of alot and actually get some counseling from other actual collectors as to the guns you can buy that will appreciate in the future.

Most classic guns have already been snapped up and you will be buying into that collectors idea of what his or her particular investment is worth to them to be able to buy it.

Your investments will be much higher then your return in most cases especially since gun makers are now making handguns for a mass market that prizes cost and value over craftsmenship,design and construction.

So you can definitely get into guns as an investment but you will need to know a heck of alot more then now and have a substantial amount of money you can do without as your purchases appreciate in value.

And be very aware,some less then honest gunmakers and gun sellers see people like you as people that can be taken advantage off and they make 'collector' issue guns with impressively pretty paperwork,rolled colored scrolling and images on the side of guns that are pretty much just standard guns and try to gouge you to make a killing off of you.

A good way to think about this collector stuff is -who will buy the guns you have stocked and what is the current market buying those guns for.

It's not enough to just have a gun to sell,the value of that gun increases many times if you have a trail of ownership on notarized papaerwork that details the value of that firearm.

Plus,ANY firearm that has been refinished loses a heck alot of it's value.

Beware those guns as an investment.

And finally,as you collect guns,you will need to store them securely and insure them for their full value ( which you will NOT determine-your insurance agents firearms appraiser will) just in case someone hears about your great collection and decides how great it would be to steal it from you and succeeds in doing just that.

Therefore,the less you brag about your investment and especially where you store it to ANYONE,the better.

Makes it much easier to see the bad guys coming when just those kind of questions start coming out of nowhere in a casual discussion about firearms.
 
The average gun is not an especially good investment. One would have to have a lot more expertise than I have.
I would rather invest in good dividend utility stocks than guns.

If you have to ask the best to buy for investments on a board such as this one you should re-consider, and not attempt to invest in guns until you learn a lot more than most or all of us know.

Jerry
 
not an investment

B.N Real...

I appreciate your reply. Good advice indeed, but you miss my point. A "commodity" is something that is so common that it has universal usefulness. I am in the housing business and I NEVER buy for appreciation. I buy bread and butter houses that will always rent and provide income adjusted to the inflation rate. I dont care if they increase in value. I just care that they provide income.

I am looking to buy guns, not collectables as anything collectible will be a luxury in times of austerity. I want guns and ammo that will be easily acquired now, and easily sellable later. My hope is that the guns & ammo will preserve the value of my investment against a devalued currency and that if, God forbid, the worst happens and we have civil unrest - they could become priceless. Either way, I think they may be a great asset to hold long term.
 
A handgun without ammo,,,

Is merely a very expensive rock. :D

In any lawless situation,,,
I would take an inferior gun with lots of ammo,,,
Over a finely crafted firearm where the supply of ammo is limited.

So if you were thinking of their value as a trading commodity,,,
One simply must factor in ammo in the perceived value.

There's no such thing as a "Guns without Ammo" magazine. ;)

Aarond
 
I would never consider firearms to be a commodity or currency....

Selling one to someone who does not have one is handing him the means to TAKE all the rest.
 
O.K.I understand what you are getting at.

Buying firearms that are well respected now will do that for you.

If all you are doing is trying to at least preserved the value.

Here's an example-I have a Taurus Model 85 UL revolver that I won't ever sell-it's been great to me.

But if I tried to sell it,I'd probably only get $200 to $220 for it used.

I just bought a 638,new,off the internet that I had to sell because a 642 is just a safer gun for me to use.

That Smith,unfired brought me back almost all the money I put into buying it.

Had I shot it much,the value would have dropped but not by much as long as I kept the gun looking like new.

Buy well respected brands and the well respected gun models they make-as every gun maker has gun models less valuable then others- and you will preserve the value of the money you spent.

As far as collecting ammo goes-unless the boxes are collectors issues-ammo is not an investable commodity.
 
peetzakilla,

Your point is well taken, but in the situation you mentioned becomes prevalent, I would assume we are post SHTF and having weapons would be much more valuable than selling them.
 
I think buying guns as a commodity is very risky. Ammo is worse than risky. Most people would prefer to buy a new gun with a warranty, and not your or my like new gun without a warranty. I think a lot of folks are leary of buying second hand ammo. Number one they might be concerned about it being legit as far as not being reloads or even counterfeit. Then there are many people concerned about the age of ammo. I am still shooting ammo I reloaded in the 70's, but there are lots of folks concerned about older ammo. Just look at the number of questions appearing on various forums about older ammo.

How do we know the gun manufacturer is going to stay in business, or if in business, will supply parts for the gun we invested in. I am assuming you are thinking of a commodity with a siginificant holding period of years and not months.

Where are you going to store thousands of guns and millions of rounds of ammo?

I don't see our Government failing to the point people are going to become totally radical. if you disagree with me, then maybe just maybe you have a good investment.
 
As far as collecting ammo goes-unless the boxes are collectors issues-ammo is not an investable commodity.
Click to expand...

the 10,000 rounds of 30-06 I paid 15 cents per round for would argue that fact

or the 30,000 rounds of 5.56 that i paid 9 cents a round for.

ammo is worth it if you buy low and sell high just like any thing else. in a lawless situation though why sell ammo to someone who can use it against you knowing you have more.

a good long term investment right now would be silver.

at 34 per ounce for silver you can stock it away. Canada mint sells 10 oz bars at strait cost and there is no tax since its a currency exchange. with gold being so high silver will start going up as more people start to get out of gold
 
b.n.real,

what calibers would you suggest? I would think that they should be purchased used as you could avoid initial depreciation. I have a few glocks and they seem to hold value well. I also thought 9mm and 38 as thay are most common. I thought about shotguns and rifles, but thay take a lot more space to store than handguns. I plan on investing about $10,000 over the next year.
 
lamarw,

VERY interesting points. My main investment vehicle is housing. This would be only something that I would do as both a hobby and inflation hedge. Even so, I want to do it in the best manner.
 
i THINK IF GUNS WERE GOING TO BE YOUR INVESTMENT I WOULD PICK UP SOMETHING CHEAP THAT AMMO IS COMMON FOR. MOSINS WOULD BE A GOOD EXAMPLE. A FEW YEARS AGO I MADE A DEAL WITH A VENDOR WHEN I GOT MY C+R TO SELL ME 50 OF THEM SIGHT UNSEEN AT $50 PER RIFLE. NOW THE CHEAPEST YOU FIND THEM IS 79 FOR BEAT TO CRAP AND PRICES KEEP GOING UP AS THE BETTER ONES ARE STARTING TO DRY UP.
 
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