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Guns as an investment?

16K views 90 replies 70 participants last post by  eastman 
#1 ·
Do you consider a gun purchase as an investment?

Are you thinking it will hold its value or increase in value?

Which are investments? And which are not?

Is a SR1911 an investment? And a SR22 a great gun but will never make money?

Or, are they all just purchases you play with and not a consideration for their long term value?

Just random question as to how we think?
 
#63 ·
I hope they are some kind of investment,but I figure guns are like cars.After you drive it off the car lot it's used.just my opinion!
 
#65 ·
I figure there are over 300 million guns in the country. That would make rarity a non issue. There are antiquate guns that will bring a pretty penny but how many of us can or will drop the money on one? I have bought a number of Marlin model 60 22 rifles at pawn shops out the door for $100. I figure they are great to hand off to grand kids or maybe troll a gun show in hope of making $25. So far I have done the grand kid part of my plan.

I don't think I will lose money on any of my guns, but won't make any money. Well maybe one. About 3 years ago I bought a like new WASR 10 AK 47 out the door for $300 cash money. I figure I could make a couple of bucks. I don't think I want to sell it.
 
#66 ·
Given the astronomical prices all original milsurp weapons go for these days I sure wish my parents would've invested heavily in them.. In 1957 my Grandfather purchased a surplus M1903A3 from Letterkenny Army Depot, PA for a mere $15.00. They charged him $2.85 to ship it... Today??? How many times over has that same rifle, which is an ALL original 1943 Smith Corona, never been rebuilt at all, appreciated in value??? I wish he would've bought a whole train load of them!!!
Yes, guns are a very good investment as long as you buy smart.
 
#67 ·
I don't necessarily buy guns as an investment but do like the fact that they hold value. I take good care of what I have. Most have been bought used at going rates or less. For the few I've sold I'm probably better than even. I suppose that allows me to justify purchasing others. Reloading, shooting and tinkering is what I enjoy. Given that the items used for this enjoyment retain value when interest is lost certainly a plus.
 
#68 · (Edited)
Hookeye sez: "Bush era Belgian FALs were 900, FNC's 600.
Ah the good old days........ "

GONRA sez the REALLY good old days were back in early 1960's
when a semiauto G series Belgium 7.62x51mm NATO caliber FAL was about $150
(light weight) and
a semiauto H&K 7.62x51mm NATO caliber Golden State Arms G3 (swing down lower) was under $250.

My Semiauto Mechanism Reference Collection
(.25 ACP up to 24mm Swiss antitank gun calibers) was purchased 'cause I wanted 'em.

These days weird stuff like Seecamps, Bobergs, 5.7x28FN calibers provide
(probably) the "last gasp" for this kind of "collecting".

But am glad I got every one of them.
(Just like you love every stray cat that walked into yer life.)
 
#70 ·
Hookeye sez: "Bush era Belgian FALs were 900, FNC's 600.
Ah the good old days........ "

GONRA sez the REALLY good old days were back in early 1960's
when a semiauto G series Belgium 7.62x51mm NATO caliber FAL was about $150
(light weight) and
a semiauto H&K 7.62x51mm NATO caliber Golden State Arms G3 (swing down lower) was under $250....
Yeah... But minimum wage was $1.25/hr, and the average annual income was less than $6000/yr.
 
#71 ·
If you buy quality guns and leave them alone they do keep up with the pace of inflation. I have some 617's I picked up in 1976 for about $195 a pistol. Now to get a 617 with factory wooden combat grips in good condition will sell for $1,000. But keep in mind $195 was a lot of money in 1976. But I can always tell myself I'm keeping them because they keep appreciating. :)
 
#72 ·
How many mechanical products can you name that will sell for more than you paid for them after 10 or more years of use??? Not very many, in fact most products become "throw away" after a few years of service. So even if a gun doesn't go up in value, you still get to shoot it .... knowing it will always have value.

I've found most guns will appreciate at a rate much higher than a bank account. If you buy a new gun retail, usually it takes a few years for the used value to catch up with increased retail prices. After a couple years, even if you shoot them, they will be worth more than you paid for them. If you are selective and are a good shopper, sometimes you can find an older gun with a modest price tag. The first couple years depreciation is gone so the value keeps climbing. Of course there are some brands and models that appreciate faster than others. All it takes is when the model is discontinued .... then the value climbs pretty fast. Older Colts, S&Ws, and Ruger Old Model SAs seem to increase considerably in value every year.
 
#73 ·
i have been buying and collecting Ruger SEC, SER & Speed Sixs over the years and have seen them really start to rise in value. I bought a NIB Snub Security Six un-fired that sold for $205 in 1983. I paid 2-1/2 times that for it a year ago. Flawless gun, box, paperwork and sales receipt. What will it be worth in 5 years ?

Look at the Speed Six 9mm 2" Snubby unreal what they are getting for one now!!

If you are comfortable with it and like it.... it is an investment in YOU....

I have spoke....nuff said
 
#74 ·
Yes and No

When I buy a gun I mentally put into one of two categories. To me it is either a work tool or an heirloom.
My LC9 is a tool as are most of my other commonplace polymer guns.
My Redhawk chambered in 45 Colt is an heirloom.

Both are important to me but they serve different purposes. Sometimes you can get crossovers but I won't bet the ranch on it.

When I die the kids get all of my guns and they can decide which to keep and which to sell.
 
#75 ·
I have a few pistols, and a rifle, that I bought back in the 70s, 80s, and 90s, that are worth a lot more than what I paid for them. But money wise, I would have been better off putting that cash into EE savings bonds.

Of course, that is no longer true with today's interest rates, and I wouldn't have had the pleasure or use of the firearms during that time.

If you are thinking about your retirement, you would need a whole lot of space to store and secure enough firearms for thirty years to realize a substantial return. And then, you had better have chosen the right firearms to invest in.

From an investment point of view, you would be better off buying gold and shares of blue chip stocks for the long term.
 
#76 ·
I haven't thrown in my 2 cents in the 4 years this thread has been ongoing. Unusual for me :p so here goes if you want to shoot and have fun buy guns. If you want to collect as a hobby then go for it. If you want to invest for the future then buy common or preferred stocks or bonds in a brokerage account. Like using firearms get some education first and balance what you invest. If you are still in the working world and have a 401K plan then max it out. It cuts your taxes and puts money away for the future (remember the balanced comment) and don't react to market ups and downs. Investing over time will smooth out market fluctuations. Time is your friend or your enemy depending on your age. The older you are the more you need to put aside. My last bit of advice is trust yourself. Broaden you depth of understanding and make the decisions yourself. There are many legitimate investment advisors out there and many that are substandard. I can't tell the difference until it is too late. The one thing they all have in common is they are there to make money for themselves. I avoid them all. Good luck.
 
#77 ·
Well, this is an interesting topic. n the last twenty five years I have done many things with the money I have earned. The guns I have bought have given me enjoyment in the field and at the range.

I have sold a few guns over the years, I haven't made much profit. The guns I have today fall into heirloom guns and retirement guns to be sold sooner or later. It would be a great surprise to see them really appreciate in value. My selection criterion is good wood and quality materials and workmanship. It seems like Black Rifles have all but dominated the market lately so my expectation is they may not return the cash value I'd like but the enjoyment and satisfaction value they have returned over the years has been a good value to me.

I have saved in retirement accounts and more than doubled my money but I have found in retirement the money can be spent easily.

In three years I will have 5 paid off properties, I hope to sell three of them and replace some of the retirement money that has been spent.

None of the money or properties have given me the peace of mind that my gun locker and trust in God has.

My last word on the subject is that I will be able to give sons and daughters and grand-kids something I valued, something of better quality than much of what is being offered in-lou-of the good stuff these days. Maybe it will have serious value to their kids or grand kids. If they think of me when they handle it, this will bring me much satisfaction in the here-after.
 
#79 ·
I've not made a profit off any guns I've sold. But I didn't buy them to sell. Most of them I bought new. One is a hundred year old Luger, which is still in great shape and is quite a shooter.

Due to declining health I've not been shooting. But that didn't stop me from buying. Running out of money did. [emoji16]

But like you, I want my 4 kids to have them when I'm gone. I had a couple of prized guitars I wanted to give them but they paid some bill for 25¢ on the dollar. Once my kids have them and divi them up, they can do what they want with them. I hope they might keep them as I have kept my grandma's .22 rifle and 20ga shotgun. They would be getting a heck of a lot more. But I'm sure some will get sold; maybe all of them. And probably for less than they're worth. I have a son-in-law that shares my passion and I've spread the word that he's to be consulted during distribution and before any potential sale. Will they do as I wish? I doubt it.

Obama stripped me of my life savings, my investment accounts, my house, my job which all played a factor in my loss of health.

I really hope your plan works for you. I don't know you but I think we might be kindred spirits. Good luck and good health to you and yours.

Sent from my Pixel 2 using Tapatalk
 
#78 ·
Nice to see this old thread brought back around. Not sure if I chipped in before but regardless here I go.

It's easy to forget the time value of money and inflation. I keep the federal Consumer Price Index calculator bookmarked and refer to it at times to remind myself how the value of things really stack up over time. So let's say you bought a Single Six back in 1957 for $68.75. I've picked up late 1950s Single Sixes for under $300 in recent years (and sold one for less than $300 too) so at first glance that sounds pretty good - $68.75 item now worth $300. Until you find out that $68.75 in 1957 has the same buying power as $628 today. So you could argue that to really get your money back you need to sell it for $628 and good luck with that.

Hypothetically if you invested $68.75 in the stock market in 1957, which has an historical rate of return of 7%, that investment would now be worth $4561.00. 62 years at 7% compounding is a powerful thing. This is painting with a broad stroke but even if the rate of return were 5% over 62 years you'd have $1416 which is better than double the rate of inflation.

So I don't think guns are generally a good investment. But as others have said they hold value better than a lot of other fun stuff - fishing tackle, dive gear, golf clubs, consumer electronics, a boat or a car, etc. (I speak from personal experience here.). And they are fun afterall so I don't mind spending some money on things I enjoy doing. Otherwise you might turn into a bitter, unhappy, money-grubbing Ebenezer Scrooge type character and leave a bunch money for your heirs to go have fun with.
 
#80 ·
I don't buy guns as an investment. To me every gun I have is a tool. I use them all, and I care for them as best I can. Having only sold one gun I made a little money, but it was an Enfield rifle I no longer wanted for deer hunting. I replaced it with a pre-64 Winchester 70 from a seller who did not know what he had. I got it for less than half its value.

Would I sell it for a profit? Not really, as it's a great firearm and does what is asked of it and more. It is far superior to something new I could have bought for the same money, workmanship being what it is today.

Any collectible can bring a lot of money, or lose money, or bring none. I used to buy and sell collections of GI Joes from the 60s and 70s. One suitcase of rare ones helped buy me a house in the mid 90s. Then the bottom fell out: old guys had good collections and needed no more or, frankly, were leaving this world. No one younger had an interest. Today I could not buy a good used car for what those toys would realize. I still deal in estates of toys and car parts, but there's a glut: heirs do not care for collectibles and whole truckloads are being dumped on a saturated market. Yet the belief that they'll "strike it rich" persists. Just go to any decent thrift store and you can score nice sets glassware, stainless, and dishes for a pittance. I'd never buy new stuff now. Just went to a junk shop and there were stacks of new Fiestaware, a few bucks per piece. I use that brand so it was a great find.

Guns are a little different as they are functional in a way that old toys are not and more valuable than cups and saucers. Guns are more like collectible cars. Yet tastes change. The car market is interesting because if you look at Prewar cars, except for the rare and bespoke, values have declined. There's a craze to do wild customs, but will buyers want them in a decade? Maybe not; consider the rise and fall of the custom van. So have many 1950s cars. The same will happen to many 1960s vehicles, as Boomers age out of the market. Yes, a 455 GTO Judge or E-Type Jag will retain value, but not a '70 Lemans with an automatic and a small block or a Triumph Spitfire in average shape. If you have a 70s Trans Am with that big bird on the hood, I'd sell it now unless you really want it for the duration: that car has peaked in value.

If you like old cars as I do, you can find great bargains on vehicles not hip with collectors or that have fallen out of favor--Model A and Model T Fords are great deals now, as are 50s and 60s four doors. Wagons, though, are HOT. Will they be in 10 years? You might apply that same logic today's guns, but given that all modern handguns and black rifles look alike to me, I could care less than figure out what might be worth money.

So instead of looking for future return, I look for a nicely functional piece that is not hip: think K-frames in .38, all-steel snubs, gently used lever guns from the 70s and 80s. They are well made and will last a lifetime. I still wish I'd bought that .45 colt Vaquero with a lovely case-hardened finish, for just under $400. It was in the case at my LGS with the ugly black plastic, which is what the kiddies want. Not too many folk into cowboy shooting come to that dealer. I'd never have sold it, since it would be an investment in fun.

I'll let my other investments support me in retirement, especially real estate. More time for shooting, then!
 
#81 ·
“Investment” What does it really mean to me. To better my future, or my time today? Collecting guns is more of a hobby to me. Can you imagine how many guns you’d have to collect to financially support you and spouse in your retirement years. Although some of us would love to have a room full of guns, most of us don’t and will never get to that point. Buying and occasionally selling a gun is definitely a hobby for me. What ever their worth after I’m long gone is something my heirs will have to deal with. Meantime I’ll keep enjoying the thrill of the hunt for the next one.
 
#82 ·
I have to agree with the bulk of the posts that buying guns as an investment, i.e. to make money when they are later sold, is probably going to be difficult for anyone other than a dealer.
In my case I have had some go up and some go down in value, based mostly on whether some politically engineered shortage was going on when I bought it. Investment was not my purpose, so no biggie.
One idea you might try with a small amount of money, would be to buy some stripped lowers. Next AWB they should become valuable. You might even be able to sell them into a gun buyback at some reasonable profit. The risk is if we go a long time before the next AWB. :)
 
#84 ·
There are some VERY FEW people who are extremely adept at buying guns for practically nothing compared to current market value. There are people who seem to instinctively know when any given gun is going to be a long term good investment and gain tremendously in value.

All of the rest of us (way over 90% in my opinion) need to be realistic: We are buying guns because we want those particular guns and plan to use and enjoy them.

Otherwise we join the ranks of those who have enormous boxes of Beanie Babies and commemorative hand painted plates, none of which will fetch more than a buck at a flea market.
 
#85 ·
The best thing I can say about most firearms is they generally hold their value. That doesn't mean you can get what you paid for them because in most cases you can't. However, they depreciate much less than a lot of things. Buy them to shoot, look at and collect because they're absolutely terrible monetary instruments.
 
#86 ·
If you are defining "investment" in the traditional sense as a vehicle to hold and accumulate wealth for the sole purpose of pulling money out in the future, there are much better options out there. As others have said, who knows what gun values will look like in the future as tastes may change. As a general rule of thumb, well crafted guns tend to hold their value, but there are just too many other good investment tools out there. Why risk having a substantial portion of your retirement account locked in as a physical item that is susceptible to heat, humidity, flood, fire, or even being accidentally dropped?

Yes, well informed individuals may do well finding a deal, and selling it for a profit later on, however, you also have to consider the effort you will need to put in finding a buyer when its time to sell.


Personally, I consider most of mine either as a tool, a hobby, or as an investment in my future firearm collection. The new guns I buy are ones I intend to keep. When I buy used, it is either something that I absolutely have to have and will keep it long term, or it must be significantly under-priced compared to current market. If it is under-priced, and something I feel I'd enjoy using, I'll pluck it up, use it casually for at least a couple years, and then trade up for something nicer that I'll keep longer-term. I have never lost value doing this, but in some cases may break even.
 
#88 ·
I would not look at guns as an investment. As I think about the baby boomer generation and the firearms owned by the generation, they are the current largest generation by population. I would also be willing to bet per capita they own the most firearms. So, as they retire and redistribute their firearms, either to supplement retirement income or through inheritance, what is the market going to be for those guns? And will the “younger” generations place the same value on the “investment” guns? Doubtful. Buy for your enjoyment.


Sent from my iPhone using Tapatalk
 
#90 ·
I have a foot in both camps. I will sell a gun if I don't shot it any more. My AR I will never sell because I will never stop shooting it. I do have 1 or 2 I could sell now but, I'm not sure I would get enough out of them to be worth it.

So far I have In order I bought them:
Hi-Point CF380
Ruger LCP 2 (I carry this every day)
Sig Sauer P-320 (My favorite pistol right now)
AR-15 20" A-2 style (I just like the feel of the familiar A-2 style from my time in the Marine Corps)
Ruger SR22 (second favorite pistol)
Titan Arms 12 gauge

I'm looking at getting a DA/SA revolver. That would round out my collection for firearms instruction.
 
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