guns as an investment

[Winger Ed.]

About the only way to make decent money on guns is to first buy them like a (real) pawn shop does.

You need a strong stomach for doing it, but you have to have a seller at their worst/lowest point in life,
then pay them about 10 cents on the dollar for their guns.

Example:
Back when a new S&W 586 sold for a little under $400. I watched a pawn broker 'negotiate' with a fella
selling one. The pawn broker offered $35., and was going to let the guy walk out if he insisted on $40.
I left and watched from across the street, a few minutes later- the guy came outside without it.

[Silvercreek Farmer]

Wow, in these parts the going rate seems to be around $.50 on the dollar.

About the only way to make decent money on guns is to first buy them like a (real) pawn shop does.

You need a strong stomach for doing it, but you have to have a seller at their worst/lowest point in life,
then pay them about 10 cents on the dollar for their guns.

Example:
Back when a new S&W 586 sold for a little under $400. I watched a pawn broker 'negotiate' with a fella
selling one. The pawn broker offered $35., and was going to let the guy walk out if he insisted on $40.
I left and watched from across the street, a few minutes later- the guy came outside without it.

[JoeJames]

I bought quite a few back in the 80's and 90's, not as an investment though. I just wanted them. Lately I have been thinning the herd quite a bit. I will not go into detail what I paid for some like a Gustlofwerk KKW 22, a BNZ43 98K, and an old P-38 that I had no use for, but I did pretty well. I reckon it comes down to whether you'd like to have it at the time or not; not as an investment.

[Battis]

I've done well with antiques, mainly because the stores don't always know what they have. Ex: a store was selling what they called a "pre-Italian copy of a Whitney Navy." Well, the only company making Whitneys before the Italians was Whitney. I bought it for a repro price, and, sure enough, it's an original. It's happened a few times where the stores (more than one) don't know what they're selling.
I have an antique on hold and I explained to my wife last night that it's another "investment." The store knows what it has but they're still selling it for much less than it's worth. "Yeah, OK, sure..." After 43 years, the jig is up.

[Silvercreek Farmer]

I've done well with antiques, mainly because the stores don't always know what they have. Ex: a store was selling what they called a "pre-Italian copy of a Whitney Navy." Well, the only company making Whitneys before the Italians was Whitney. I bought it for a repro price, and, sure enough, it's an original. It's happened a few times where the stores (more than one) don't know what they're selling.
I have an antique on hold and I explained to my wife last night that it's another "investment." The store knows what it has but they're still selling it for much less than it's worth. "Yeah, OK, sure..." After 43 years, the jig is up.

When someone says “investing”, my mind automatically jumps to long term investments. The word “flipping” comes to mind for short term investments. No doubt better knowledge than the seller can result in a profitable enterprise. If you enjoy it and aren’t making decisions that could put your family on the street, by all means, go for it!

[trebor44]

Baseball cards or comic books are a better option!

[Beerd]

buy high, sell low.
that's my motto.
..

[Rapier]

Good land in a good location is a much better investment, in my experience. Not all land is good.

[huntinlever]

buy high, sell low.
that's my motto.
..

Yeah, my talent.

[ascast]

I'm glad to see the consensus is as I see it -not such a good idea. I have a bunch of closet queens that sell quickly, but the money would have been better off in a Roth or similar.

[Hannibal]

Buying a firearm from someone you don't know is an even bigger risk. If it turns out to be stolen or something used in a crime then you've got a lot of explaining to do and you'll loose the firearm, best case situation.

That's definitely not a risk I'm interested in taking.

[schutzen-jager]

i have been in many diversified IRA's + blue chip investments + none have come even close to what my recent results in selling my accumulations - .

[unclemikeinct]

A lot of good opinions. First rule of biz. Money is really made buying the best deal. So look for bargains. The better you buy, the more profit you can sell. uncle mike

[Hannibal]

i have been in many diversified IRA's + blue chip investments + none have come even close to what my recent results in selling my accumulations - .

Does that include inflation adjustments? If you'd invested the same amount at the same time in stock market investments you're still ahead?

It's not impossible to pull off, but it is rare. And the investment situation today is significantly different than it was even 2 years ago. I'd state the obvious reasons why but don't want this turning political and going to The Pit.

[Der Gebirgsjager]

I think that guns can be an excellent investment. Just spend a couple of hours on Gunbroker.com seeing what they're selling for. WW II German K98k rifles that guys maybe paid $45 for "back in the day" are going for $1,100. Lee Enfields that once cost $45 are easily going for $450 (and up!). Many more examples...but look at them for yourself. All guns seem to have gone up dramatically. Even bolt action shotguns that sold for $85 new are going for $200 used. But, in many cases, it took 50 years for the investment to mature.

However, one should define "investment", and exactly what is expected. Years ago I read an article about the cost comparison of a good suit of clothing and a Colt SAA. I think originally, back in 1873, the Colt cost something like $17.50 and a new suit was about the same. The article went on with the value comparison to pre-WW II, post WW II, the 1960s, and it might even hold true today. That would be an ordinary new suit (not Wayne LaPierre's suits!) and a Colt Gen. 3 SAA. Maybe about $2k? The takeaway, though, is that the values were roughly even. But that is just keeping up with inflation, and some would say that an investment has to "make money". Maybe the old, original SAA in pristine condition would make money. Condition is always a lot. People that buy and set aside gold and silver are preserving their wealth relative to the economy's inflation (or deflation--then the price drops), but aren't really making money unless you're ignoring the inflated cost of everything else and just looking at the sale price dollar amount. While that silver dollar was going from $19 to $23 everything else went up.

I agree that land can or can not be a good investment. If you think that someday they'll widen the highway and have to buy yours, or that a residential subdivision or shopping center will be built there, then it's a good investment. If it's farm land and you're a farmer it might be a good investment. If it's 30 acres out in the woods, probably not unless it has value in timber.

Myself, I've found guns to be a good investment, but I acquired many of them over a lengthy lifetime, and things I paid $35 for are now worth $700. Again, though, relative to the economy. After all, I used to pay $0.35 per gallon for gasoline back in 1964.

DG

[GOPHER SLAYER]

The problem with buying guns, whether as an investment or to use is the fact that tastes change. I have several pistols that I could sell for a big profit, but the single shot rifles are another matter. I have nineteen single shot rifles I bought when BPCR shooting was going strong. Today I couldn't get what I paid for them. Bolt action, good luck. The younguns only want the black guns. Some gun shops have nothing else.

[JonB_in_Glencoe]

i have been in many diversified IRA's + blue chip investments + none have come even close to what my recent results in selling my accumulations - .

Over that last 8 years, gun prices on Mil surps, as well as, many "middle value" civilian guns have just gone crazy. I sold the major portion of my gun collection in 2015 at a auction, and pretty much broke even...many of those guns were in my possession for 20+ years. If I would have had the foresight to hang on to those guns until now, I could have doubled my money, no doubt. We are living in some unique times, for sure.

[JonB_in_Glencoe]

Opinions on guns as an investment?
I know, alot depends on what you pay for a firearm, the type of firearm - handgun, rifle, antique, etc.
I still think guns are a good investment. The problem is that you have to be willing to sell or trade them at some point.

Today, Prices are high, will they go higher? Hard to tell?
I think it would be quite risky to be buying guns today for an investment.

[JonB_in_Glencoe]

About the only way to make decent money on guns is to first buy them like a (real) pawn shop does.

You need a strong stomach for doing it, but you have to have a seller at their worst/lowest point in life,
then pay them about 10 cents on the dollar for their guns.

Example:
Back when a new S&W 586 sold for a little under $400. I watched a pawn broker 'negotiate' with a fella
selling one. The pawn broker offered $35., and was going to let the guy walk out if he insisted on $40.
I left and watched from across the street, a few minutes later- the guy came outside without it.

About 25 years ago, I'm at the LGS and a fella comes in with 4 guns he wanted to sell. He says he needs $90 to pay a utility bill, but only wanted to part with one gun and asked the shop owner which gun could get him $90. The shop owner offers $90 for all four. My personal opinion was that each gun (they were all used) had a gunshow value of around $200 each. One of them was a Thompson Seneca 45 cal ML, and that one caught my eye. I stood nearby quietly. After the fella and the shop owner talked quite a while the fella left with the 4 guns and zero dollars. I hustled outside and caught up to the fella, and asked about the ML, he said I could have it for $90. Two people walked away happy. If the shop owner seen us make the transaction, I suspect he was PO'd, but he never commented about it? I knew him quite well, back then, I was in his shop once a week.
BTW, I still have that Seneca

[schutzen-jager]

Does that include inflation adjustments? If you'd invested the same amount at the same time in stock market investments you're still ahead?

It's not impossible to pull off, but it is rare. And the investment situation today is significantly different than it was even 2 years ago. I'd state the obvious reasons why but don't want this turning political and going to The Pit.

including all inflation adjustments i have not had any other investments including my house increase by 50 to 100 percent over the years like the profits i have received lately + i never acquired them as an investment -