Invest in your Future: Buy Firearms

Paul Revere

New member
Most of us who use our computers for business, also find time to do some on-line trading in a variety of corporate stock. And during the last 18 months or so, just about anything that had a "dot.com" after its name, produced unbelievable returns to those who jumped to get in. But now, things are different. Investing in these high flyers is becoming increasingly risky and volatile. Internet stocks (for example) have dropped significantly, the DOW is off more than 1200 points from its high. So what can we invest in with Y2K looming ahead, with so many uncertainties hanging over our heads?

How about investing in firearms (and their related parts, magazines, and ammunition)?

If you already enjoy firearms, shooting, hunting, going to gun shows, etc., what better way to invest your cash than into firearms? Look at the returns on high capacity magazines enjoyed by those who were savvy enough to buy them before 1994. Look at the prices of military semi-auto rifles, shotguns, and combat handguns.

We all know that markets are driven up and down by the economics of supply and demand. Now, items that contain the words "pre-ban" have a special meaning to investors, nearly as much as "dot.com" has had. The latest issue of Blue Book of Gun Values has an excellent preface containing editorials written by a number of people in the gun industry and in shooting sports. One of them specifically deals with firearms as investment. The sense of this particular article deals with the direct relationship to supply and demand, and the almost predictability of future firearm prices.

And its not just firearms that have and will skyrocket as more and more legislation is passed in Congress, its accessories, parts, magazines, and ammunition. I've been watching the bidding of an original Ruger Mini-14 factory folding stock on www.auctionarms.com, and the last I looked it was bidding close to $400 (just for a stock)! We all know how expensive Glock high cap magazines are. Do you think the prices are going to come down, anytime soon? Ammunition like Black Talon and anything armor piercing is extremely hot right now. Why? Because you cannot get them over the counter anymore. Same for those nearly black market prices on Steyr AUGs, H&Ks, Galils, UZIs, and anything else that has a folding stock, flash hider, high cap magazines, or is covered by the Assault Weapons Ban.

Threats to the firearms markets by frivolous lawsuits, rabidly anti-gun politicians, judges, and increasingly socialist education in our schools can only do one thing to the prices of firearms...increase them.

So while you're investigating a Bloomberg report on a potentially hot new company, think about investing in something that is akin to a "sure thing"...firearms. And, you can shoot these investments, defend your family with them, and defend your freedom with them (if some of these socialists in Washington D.C. get cute on Y2K).

Don't tell me about Dishwipe.com, tell me what you think the next hot firearm investment will be.
 
Paul, to be honest, I disagree that firearms are a good 'investment'. I've just seen too many lousy examples of investing in 'commodities'. True, some firearms are more like numismatic coins, because they are unique, rare, antique, etc. And, I've certainly seen people profit on firearms - but they usually fail to compare their returns to what they would have made with alternative investments in stocks, bonds, real estate, etc.

Having said that, I don't disagree that they are a wise place to invest some money. I feel that it is now crystal clear that ownership of any and all firearms is at risk in the U.S. Sure, the pendulum may swing back to more logic. Then again, it may not. Recent history is not encouraging. The only positive swing of the pendulum that comes to mind is the advent of concealed carry legislation in various states. Other than that, all legislation seems to be either against us, or simply holding actions against more onerous legislation.

So, I think it is prudent for moms and dads to buy firearms for their kids - of all ages. No, I'm not going to give Uzi's to my kids for Christmas. However, when they are of legal age, and if they have diligently pursued proper training, they will receive good quality firearms from mom and dad. I recommend this course of action to my friends. Those firearms might also become good investments, but the primary reason is that I want my kids to have good quality safety equipment, and they may not be able to buy their own when they are adults.

When it comes to the future, I think having firearms in the hands of decent, honest Americans has historically been a wise course in our country. And, I think that will remain the case. Perhaps cornered rat will weigh in here - as I recall, he suggested having a few stainless steel revolvers set aside for friends. Another sound 'investment'? ;)

Regards from AZ


[This message has been edited by Jeff Thomas (edited September 28, 1999).]
 
The only bad point of firearms as an investment is-They ban the transfer, now you have a worthless(ONLY FROM AN ECONOMIC STANDPOINT) investment. Socialism sux!!


Later
Daren
 
Paul, Jeff, Daren:
If one single word of this becomes known to my wife I will personally come and do horrible things to you!

You know, Pump Shotguns and Canned goods are always a great investment!

Hank
 
I don't see firearms as an investment, but darn if they're not fun to have and use.

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Vigilantibus et non dormientibus jura subveniunt
 
Thanks to "pre-ban" purchases, stupid laws, and a good deal or two, I'd guestimate my little collection is worth 50% more than what I paid for it.

Contrast that with my computers, which would fetch maybe 10% of purchase price.
 
OK, I will weight in:

Guns are great investemnts, IMO. Good quality arms do not depereciate fast. Some, the grandfathered, now-banned kind, appreciate even.

If transfers or ownership is banned, the guns become invaluable, not worthless. I understand that you might not start a war over one of your ten guns being on a banned list (full-auto owners did not in '34 or '68)...but the option of being able to do so is important.

I agree that the main use is in training others. One can *always* ambush one enemy and upgrade from harsh words to whatever he was carrying...but training is needed to use those arms effectively.
http://dd-b.net/RKBA/oct98/s_learn.jpg

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Cornered Rat
http://dd-b.net/RKBA RKBA posters
http://dd-b.net/olegv Portrait, nature photos
 
Paul, great idea, but deciding WHERE to put my money (ha,ha) is not a problem I have - no money. Absolutely, investing in "assault weapons" is a veritable gold mine. Your 1994 $80 SKS will now sell for $300, etc. My brother, who is pro-gun, can't figure out why I buy guns when I get any cash at all, instead of paying on student loans. It's not so much for investment, though, as it is for the fact that these guns just flat won't be available in the future - I'd like to have something to pass on to my heirs. There are many bolt, pump, and lever guns I'd like to have, but I'm putting off their purchase for a few years in favor of less-immediately-wanted semi-auto firearms, esp. ones with mass-destruction devices like bayonet lugs and pistol grips, because of the bans likely to be forthcoming.

Darren, as rat alluded to, when the gov't bans transfers (or possession, for that matter), they've just made a criminal out of me, so laws won't stop me at that point, and the guns are extremely valuable.

[This message has been edited by Futo Inu (edited September 29, 1999).]
 
Guys I know the guns would become very valuable. That is why I have so-called assault rifles and am looking into full-auto. Looking at guns from JUST an economic standpiont they would be worthless if the only reason you bought them was to make money. The is why I made ONLY FROM AN ECONOMIC STANDPOINT so darn big :)


Later
Daren
 
Only money can consistantly return profit.
I invest in firearms, but expect no return in dollars or cents. I trade my time, and hence my money, for a tool that is:
A highly refined piece of manufacturing perfection. Produced to exacting tolerances, able to safely contain explosive forces and pressures within an arm's reach of my face. It can provide the means to feed, protect, entertain and teach, not only me, but friends and family alike. Money just sits. Really kind of boreing stuff, money.

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CCW for Ohio action site.
http://www.ofcc.net
 
You have to be careful in what you invest in. One Chinese SKS Sporter and one NHM-91, also Chinese, are now two Stainless Steel Kimbers.
 
In all seriousness, If you invest wisely you are diverse. How can you argue with an investment in pump shotguns and canned goods?
If you have the only brand new spark plug for a Honda 300 4Trax in your glove box on opening morning that may well be one of your best investments if one of your buddys has a problem!

Hank
 
If one subscribes to the concept that guns make an excellent investment (I do), it would follow that you can decrease your risk by putting your money into ammunition, mags and reloading equipment instead. How many rounds of 9mm can you buy for the cost of a Glock 17? 7.62x39 for the cost of an SKS? Unlike guns, you can make "change" during a barter transaction with ammunition.

If someone has two guns and no reloading equipment, what becomes more valuable to him? That HK91 or the reloading dies for his Remington 700?

My point: we can rationalize firearms as "good investments", but we buy them for the enjoyment.
Rich

[This message has been edited by Rich Lucibella (edited October 07, 1999).]
 
I didnt invest in guns much this year - bu tI did make investments into some business ventures that have panned out. So much so that I will be leaving the regular work force maybe mid November and taking up investing (Not Day Trading) and managing my properies full time. Commercial Property has been very good to me right now. This will let me reinvest in guns in mid-late November.
Any gun purchase I make however will be from John Q Public as avoiding that kind of paper trail may be a good thing.

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I mean, if I went around saying I was an Emperor because some moistened bint had lobbed a scimitar at me, people would put me away!
RAGE AGAINST THE MACHINE
 
Darren (and others), YES, PURELY FROM AN ECONOMIC STANDPOINT, certain guns are a very good investment, meaning specifically that the return on capital (measured as a percent increase in fair market value over a fixed time) is greater than with other alternative investment vehicles, such as mutual funds, in the 1990s, and will continue to be so until such time as the bans are repealed. This holds true EVEN IF the the anti-gun tide continues, and the transfer of such guns is made illegal; in fact, even more so, PROVIDED THAT you are willing to engage in illegal transfers.

Notice the answer may be different if you had asked "purely from a economic standpoint, in a LEGAL BUSINESS ONLY". I don't think this can be made much clearer. Assault weapons are a gold mine, if you compare the price in 1990 versus the price of the same in 91 vs 92 vs 93 vs 94, etc., whether it be an AR, SKS, AUG, AK, FAL, UZI, whatever. Some one give me the average annual yield on their mutual fund holdings in the 90s (or even a decade-long yield), and let's compare it to an SKS - I would guess only like the "fluky" top 5% of mutual funds could even come close to the increase in value of an SKS.
 
Agreed...ammunition, magazines, and other related accessories are just as good investments as the arms themselves.

Let's take ammunition. We can no longer get over the counter Black Talons, hence their price on the secondary market has shot through the roof (no pun intended). Look at armor piercing ammo as another example. You used to be able to get IMI .223 LAP (M855) for a song. Now the stuff is red hot, going for $15-$20 a box (30 rds). What about .50 cal?

Magazines you say? Ruger 10/22 high caps for $50+, Ruger Mini-14 factory high caps for $100+, AR-15 30 rounders by Sanchez (green followers) are nearly untouchable and going for $30-$40 each when you can find them. Shall we even mention Glock factory high caps starting at $60+ (for 9mm), or $75+ (for .45)?

Accessories? Try Butler Creek folding stocks for any rifle or shotgun (Rem 870/1100, Mossberg 500/590, Mini-14, 10/22, etc). You once could get these things for $35-$45 each. Now you'll see these things start at $85 and go as high as $130 (if you can even find them).

How about any item for an exotic weapon like Galil, Steyr AUG, H&K, UZI, etc.? Not to mention the weapons themselves.

Yes, diversification of investments is a must. But, put me in a time machine and send me back to 1985, and I wouldn't be buying IBM stock (maybe Microsoft), I'd be all over the exotics.
 
Mr. Revere,

If I used the full retail price for a HK94A3 in 1983 (and who pays full retail?) which is listed on HK Pro (http://www.unsuave.com/~hkpro/hk94old.htm) of $720 and invested it into AXP New Dimensions Fund (ticker INNDX) on 12/83, by 6/99 the fund would have grown at an AAR of 18.43% to $9,902.00 per Wiesenberger Investment View. At the last show I went to a NIB HK94A3 was listed at $3995 which would average 12.13% list to list.
I will be happy to supply any and all takers with factory new HK94A3’s @ $8065.60 a pop ($9902 less 20% cap gain tax on earnings.) Use assets are not investments, we just say they are to justify our purchase habits.

Now if only I could get my hands on an MP5-10 now there would be an investment!


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The Ameican Cenrury Growth that I have did near 23% year before last and it has done very well for a mutual for quite a while.
I thought we were talking about rationalizing
firearms as investments!
I have several items that if I had left them NIB would have done pretty good. Leaving something NIB is no fun at all!
Doing a business in firearms is one thing, I think that the days of investing in them is pretty well over. For the average person, single purchases will be expensive and the price will not rise very much, if at all. The great collections are already assembled and if ever sold will most likely be bought by a single intity at a huge price.
Still, If you can convince your wife that they are a good investment they are a great one!
Besides, they might become handy some day!
Hank Lampe
Invest
 
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