Investing in Guns--your thoughts.

[SK]

If you had $10,000-$15,000 to invest in guns, what would you be looking to purchase?
Ive watched prices climb and never thought Id be paying the prices I am for guns today--
However, Im interested in your thoughts for investing, not buying your favorite guns to shoot.
I know some of you will say "why buy a gun if your not going to shoot it", and other "words of wisdom", So lets see what you would buy as an investment--list below. This could get fun.

 

[Dan in MI]

I have some Colt's I bought for that purpose.

My fear is the gov't outlawing my investments and all of a sudden my portfolio is zero.

As far as what. I lean towards original SAA's and Winchesters. All pre war, preferably pre turn of the century.

 

[hittman]

If it were MY money .......

Old, original, mint and/or new in box items.

Ruger single actions in obscure calibers, barrel lengths and configurations.
Two and three digit serial numbers.
Deerstalkers.
Hawkeyes.
OM Supers in mahogany box.
RSSE.
Colt single and double actions.

Some excellent advice I got many years ago is to buy what you like and what you can afford. Nobody else's opinion really matters.

 

[rugerguy]

today, in this economy and the "lag" of profit, growing, if you pay some of the prices that are being sought for such as Colts ,Winchester, and top of the line ,old model Rugers, , there is NOT the growth, or potential "
profit" that has occurred the recent past, I used to sell Colts in our shops , Pythons, Diamondbacks ,etc, for in the $275-375 range, ,,,,,,,Y$S, they have skyrocketed, BUT that may NOT
happen again, even closely,,,,,try selling some NICE , old model Rugers and get the "value" noted, in such as the RENE ,even the 'Blue Book',,,,,,, sorry few and far between, they gotta be about "perfect", rare' low numbers, and ALL the packaging.........look around and you will see prices dropping on many of these "snake" guns, and even fewer buyers,,,,,lots of stuff on gun broker, being listed, over and over and over..........
bottom line to me is you gotta "shop the deal" find something someone os trying , needing to "MOVE" and you can get it for a below ( much below) market price..........I've told a few people who have money in their pockets, that they have to be "smart buyers",,,,,,the gains is NOT there right now, look at all the deals on about any and all guns now, ( and ammo ) at the local shops...there is NO panic buying, or "need" to get one , unless for home or self defense and again shop the deals, LOTS of them out there..................

and worse yet, there is NO "interest" ( growth) in ANY of the banks,,, hell they want $20,000 for 5 years , so you can get 1.55 %............HA

Just MY 2 cents, and I am at a gun show about every weekend there is one, I do not even go and set up at the OGCA anymore, it is a "losing" proposition, and cost far too much to even set up, stay , gas and eat....... :?

 

[SK]

If it were MY money .......

Old, original, mint and/or new in box items.

Ruger single actions in obscure calibers, barrel lengths and configurations.
Two and three digit serial numbers.
Deerstalkers.
Hawkeyes.
OM Supers in mahogany box.
RSSE.
Colt single and double actions.

Some excellent advice I got many years ago is to buy what you like and what you can afford. Nobody else's opinion really matters.

Agreed Hitman, IM looking for peoples thoughts on "what is" collector quality--usually this items sold as collectible, aren't.

 

[mohavesam]

There are quite a few bonafide collectors here. Most are in thier 50's, 60's or older. No one lives forever. IMO collecting serves one of two masters: donations to a museum, or quick liquidation and redemption for cash.

I don't see guns as being either IMO. Even the guys with a hundred or more NIB 30-40-year old guns need a year or better to redeem them. Guns may get you your money back but for a true "investment" with potential for a 10%+ return, I have not seen it. There are exceptions of course but a good (certified) NIB Rolex or loose natural emerald gains value better/has better liquidity than all but the rarest of firearms.

Example: I had 28 ANIB Winchester 1894 rifles, no dogs all "collectible" and boxed. It took five years and a dozen buyers and a lot of work on my part to sell them. Wife#1 decided to sell a half tray of gemstones - maybe thirty in all - and had a cash buyer in three days.

 

[hittman]

Now.....do I think old guns have the best potential for increasing values? No. There are other investment vehicles that will certainly gain more value quicker.

However, if you're set on investing those funds on GUNS ...... I stick with my earlier post.

 

[bogus bill]

First of all you best zero on a variety of guns. I found that when I was looking for a number of different type guns rather than just looking for one gun that odds were better of guns showing up rather than going to a dozen shows or whatever and maybe getting just one hit. None of us know whats going to be popular in the future. I will say I was born with zero talent in any field, BUT through the years the one thing I can say is that whether it was guns, cars, trucks, motorcycles or airplanes the very models of any of them years later became the stars and most sought in their fields.
The bad news is I seldom had the money to buy them when they were at their cheapest. In the past I have owned some of all them that would be worth a small fortune had I kept them. I did keep a few. Buy for what turns YOU on, not what turns the mass`s on at the time. If you do you will be buying at top dollar and still have to hang on to them for the next fourty years to come out. If you buy what strikes YOUR fancy, not just because its popular at the moment with the mass`s you will enjoy what you have stashed while you sit on it. Lets just hope you have good taste.

 

[vito]

Whether or not you find old guns that a truly an investment opportunity, you need to think about what an investment is. If you fall in love with your collection, it is not your investment, even if it might turn out to be for your heirs. When I hear from folks "investing" in something that they love, who realistically would never sell the items, then it is not an investment but a purchase of a collectible. I had a friend years ago who married a woman from Iran who was a true expect on woven rugs from that part of the world. They bought numerous rugs as "investments" but could never part with them once bought. I have no idea why they enjoyed having numerous rolled up and in the way woven carpets, but eventually they passed them on to their daughters, who likely will never sell them as well. Maybe someday, several generations from now, someone will reap the benefit of these "investments". For me, if the appreciation of an item does not accrue to me, it is a purchase, not an investment.

 

[Bear Paw Jack]

Having cash, should mean you have an edge. But you only have an edge if the word get's out to folks in a hurry to sell. Use that cash to buy "below Market" as has already been said. Doesn't matter if you buy guns, real estate, or jewelry. If you don't buy below market, you are going to have to wait for the market to go up. Who knows how long that will be. Otherwise the best you will do is recover your money and that's not much of an investment.

I'm not even sure I'd buy guns if I anticipated needing the cash in 5 years or less.

 

[Xsales]

If you had $10,000-$15,000 to invest in guns, what would you be looking to purchase?
However, Im interested in your thoughts for investing, not buying your favorite guns to shoot.

Clarify "Investing" are you talking long term or short term? as this changes the type, caliber of guns to buy/hold

If longer term: Hittman hits it on the nail

If short term: buy a mixed variety of common use handguns in 22lr and 9mm or AK or AR rifles

With cash, bought reasonable, you will gain
If buying with the rise in prices seen over the last 3-4 years, then good luck
UNLESS it is truly a rare piece

I would also "invest" some of that money in 22lr, 9mm, 7.62x39 ammo

 

[Jimbo357mag]

Invest in guns to turn a profit? It's nice that what you like (guns) can be profitable to collect but just from an investment standpoint I think there are many better investments, like mutual funds. Do you want a valuable collection of guns or to just make money?

 

[Kevin]

I would also think the stock market is better for investing. But as far as guns are concerned, what about something fully automatic? They seem to appreciate .

 

[WAYNO]

I convinced myself that acquiring firearms was a sound investment. Maybe it still is sometimes. It was a good excuse.

But...While "mature" folks are waning in numbers, will there be enough youngsters interested in buying my Old Models to support their values, when they could be buying a Glock or an AR?

I have found locally, safe queen Rugers are hard to sell.

And selling on the internet, I'm finding my gun values are not keeping up with the added costs of shipping.

Win or lose, this is all the cost of the hobby I've chosen.

 

[GunnyGene]

Investment grade guns are like investment grade cars, jewelry, furniture, or anything else. Documented history, rarity, condition, etc. You might could pick up a pair of 1800's dueling pistols or a presentation gun given to a notable historical figure, for the cost you mentioned. But I'd stay away from modern guns (anything made after 1900 unless it's truly exceptional in some way - and I don't mean some pos gold plated 1911 some drug lord had). Go to high end estate auctions - in person, not on-line - be patient and know what you are looking at. Selecting a investment grade gun is not for amateurs, and you can expect some experts (including museums) to be bidding on it.

I've been to quite few such auctions, and trust me, you can get royally screwed if you don't do your homework or get caught up in a bidding war. Know when to quit.

 

[bogus bill]

Vito has it nailed, I have to admit he is describing me. Years ago I did make a few bucks buying and selling, but now I am 76 with a far younger wife. I have next to no savings, maybe okay for my lifespan but not hers as the stats say she might outlive me by 30 years! I have a nice collection of guns but not much income. I haven't been able to start selling guns that in truth, I may never shoot again.
What holds me back is from experience I have found I would sell a gun and a week later I couldn't tell you what I did with the money and didn't have the gun either!

 

[Rancher Will]

Buying guns as an investment should be done only with the same rules of buying any other investment. It is necessary to understand that there is a difference between price and value over time.

In my business dealings I always try to determine if the investment will result in an increase in value over time, considering the result of the price/value by anticipated inflation, and the determined value over time reflected by price if used or sold for the resulting value.

 

[pete44ru]

.

Specific firearms (any investment, really) don't matter, as long as you follow the Golden Rule of investing religiously:

"Buy low, sell high"............... :mrgreen:


.

 

[rugerguy]

Pete, that is what I say.........yes, many of us can say we bought some gun YEARS ago, and made money on some here and there, someone said AKs & AR's well I feel sorry for the guys who bought them a few years ago for $1800-2000, for an AR and they are at all the stores over here at $499 these days, and used ones are LOWER !!! yepper, some investment......... 8) :roll:
LCPs for UNDER $199, and many other makes and models of 9mm and 40 cal for a little over $339 and you get, mags, holsters, and from S&W , "cash back" as a bonus !!!..........guns are NOT a good buy as ANY sort of investment, and NEXT time around the ilk of 'hillary's loins will want to take them all away, maybe then the prices will get driven up,,,,as the industry noted, obama was the gun businesses "best salesman"......
there is NO "fear or panic" buying ( buyers) out there, ALL are shopping the "deal" and as I noted earlier, they are NOT even looking at the single actions on the table.......hhhmmmm

 

[protoolman]

well my money in the stock market doubles with compound interest every 7 years or so. A rifle my dad could have bought for $150 in 1960 might have cost me $300 in the 1980s and now is worth. $600 considering inflation in addition the gun was a poor investment and nobody could have shot it or it would be worth far less. My stock market investments don't require oil,maintenance and don't risk theft or need insurance either.

The only real way to make money on guns is to move them fast and a lot of them. Buy and sell say at a $50 profit every time you see a good deal. But that's a lot like a job and would presumably require an ffl.

 

[AJGUNNER]

I have tripled my money on primers and almost tripled it on powder. Only wish I would have bought more lead back when it was cheap.

 

[radicalrod]

Well tell me what your new car or truck is worth 5 years after you own it......

And no one ever loses money in the stock market :roll: :roll: :roll:

I enjoy collecting guns and have never lost money selling one maybe even might have made a few dollars....

And Rugerguy I don't go to the OGCA with the thought that I won't "BREAK EVEN" sounds almost like you are running a business.... I go because it is fun and many great guys show up....and occasionally I sell something but mostly I consider it a mini vacation 6 times a year.....with the opportunity to buy a few guns too.....

I would take the $15K and buy some guns you like and be happy.....maybe they will be worth more than you paid in 5 years but I bet the diesel dually pickup will be worth about 25% of what you paid in 5 years :lol: :lol: :lol: That's why I drive old junk....I buy my guns with the money I didn't loss in depreciation .....that's my story and I am sticking too it....YMMV.....RR

 

[Don Lovel]

American western expansion firearms, certain military arms, have been going for pretty high prices at auction. Not sure if the prices they sell for is so good after auction fees and taxes.
Yesterday I found an old 1885 Winchester low wall in .22 short with a Unertl scope rig on it at a shop in Salida.
I also know where there is an original unfired Marlin 1894 Cowboy Limited with 24" Ballard rifling octagon barrel in 45 Colt caliber for sale.
Two guns I know would be worth quite a bit, but a lot of money to tie up on them.

 

[#1rugerman]

Back BK (before kids) I collected a good number of guns (middle 70's, early 80's) a couple of years ago I was diagnosed with end stage kidney disease (kidney failure) and arthritis (oa & ra) the arthritis has stopped most of my sporting stuff so I sold off several guns. Since I bought them around 30 years ago and because I kept them in good shape, even though all of my guns were used for hunting or general shooting I got a good return on my investment. But that was during the obama years when folks were afraid of gun control and they were looking for a good used gun. Don't see that happening in the next few years.

 

[DGW1949]

Several years ago, I watched a friend of mine sell one of his AR's for $850. During the last "panic" he mentioned to me that he could have doubled his money if he had waited to sell it.
Fast forwarding to the here and now...a few day's ago, I ran into him at our LGS. As we were "looking around" and talking about the cheap prices for AR's, he said that he was glad that he sold his back when he did.
Same gun, different days/circumstances/markets=vastly different sell prices...that's what I'm getting at here. And who can predict the future?...certainly not me.
Plus, there's a difference in the effects of inflation and actually realizing a profit in terms of selling in today's money VS what you paid in yesterday's money...meaning that it's quite possible to end up with more "dollars" and still "loose money". So then there's that.

Running out and spending 10K-15K for guns as an "investment"?...nope, not for me, nor would I recommend it to anyone I know. As far as I can tell, most folks would realize much more "profit" if they used that same money to eliminate as much compound-interest as they can on whatever debt they are carrying...
After all, is not "making your money work for you" what we're actually talking about here?...

DGW

 

[mohavesam]

Most folks do not realize (nor understand) the value of the dollar over a few years. Public school curriculum in evidence.
Fools fail to calculate real USD inflation when thinking in terms of "investments".

http://www.usinflationcalculator.com/

In 1960 I bought X for $150. Today, that X is worth $1240. YAY!!! - uh, wait a minute, that item has not appreciated. not one penny.
If it sells for $1239, I've lost money, not to mention nearly 60 years.

Investment? I want a proven 10%+ annual appreciation in real USD value, plus 48-hour liquidity-to-cash. I just don't see that IRL with 99.308% of attainable firearms. :roll:

 

[bogus bill]

I am one of those guys that it doesn't matter what investment choice I make or don't make, as it will be the wrong choice.

 

[bogus bill]

Lets see. Buy something and make 10% in a year. Meanwhile back in the jungle,
Inflation = X %
Capital gains tax on the profit = Y %
Kids screw up, bail bond = - Z %
Truck lose`s the tranny, = forced sale of all or part of investment
Lord gets 10% of any gain
Ex is taking you back to court for more child support
I can go on but will spare you.
Spend the money now. The battle of Armageddon might be tomorrow.

 

[blume357]

for that kind of money I would think you would be looking for some type of estate sale where you pick up a guy's 'collection'.

 

[RolandDeschain]

I always have the same comments anytime the word "investing" comes up.

IMO, the best investment is your own freedom, achieved through eliminating any and all debt before you invest in anything else.

After that, invest in something you know how to make money in..... so long as you have a passion for it and a good understanding of what represents a value and what doesn't, coupled with patience...you will do ok.