Firearms as an actual investment ...

[solv3nt]

I bought a Beretta 686 off of a guy here that had bought guns as a means of a college savings account for the grandkids. I'm pretty sure we came out ahead by a little over a period of 18 years.

 

[Spitpatch]

Sometimes, lack of education can burn you (resulting in addition to your education). Other times a hunch is just as good as an education.

I contacted a young man a few years ago regarding a "Grandpa Gun" (inherited), who had already gone to a gun shop before I talked to him about it. I noticed a portion of the receiver that had not been worn as the rest of the gun, and if what I saw was truly what I thought it was, it was indeed a "Holy Grail".

The gun shop he said, had offered him $2500. Such was a ballpark fair price if the feature I detected was not present (I still wasn't certain I was right).

$2500 was NOT in any ready reserve for me, but I scraped and scratched, and deferred a few bills that were due, came up with $2900 (couldn't quite make the 3k mark), and also scraped my gunracks clear of 3 or 4 guns of modest value I could do without. He was thrilled with my offer and we made the deal. I drove home anxious about where I'd get the money to gas my car for work next week, ate beans and rice, rice and beans (and venison) for awhile.

Gun in hand, a phone call and pictures to a much more astute collector than myself confirmed that what I'd seen in the gun was indeed there.

I've only seen three in my whole life (all since I got this one, since now I know what to look for). Those were tagged at 15-17 thousand dollars.

The newest Blue Book shows the gun at 21-26K.

$2900 and three cheap guns won't even buy a basket-case specimen of it. I killed a deer with mine.

 

[3MTA3]

The short answer for me is - not really. Buying guns is EASY. Selling guns is HARD.

Many years ago I bought an old Winchester .25-20. About 20 years later I sold it for twice the money. My wife was impressed! It sure did beat inflation. Now, of course, I exalted in the compliments and how smart I was doubling my money and all. I didn't worry her pretty little head with things like "opportunity cost" or how I could have stuck the money I spent for the rifle into a bank CD and more than doubled my money over that same 20 years (not to mention the stock market, etc.). When the rare opportunity arises where she thinks I'm smart, I just go with it.

I think that's basically true for most gun purchases IF you hold on to them long enough. For the most part you break even with buying power when you sell. The advantage over a CD or most other investments is that you get the use of the gun over the same time period.

I've never purchased a gun with any other intent than to use it and own it for a long time/lifetime.

 

[clanhanson]

I believe purchasing firearms with the sole intent being resale and profit would technically be illegal unless you were a licensed dealer. You'd have to deal in fairly large quantities but I'd be careful with that one.

 

[Bobbygun]

I've never purchased a gun with any other intent than to use it and own it for a long time/lifetime.

Same here.

In fact, I've come home with some pretty nice guns form RMEF and Friends of NRA banquets. They would likely be worth more investment-wise if they remained unfired. Well, that ain't gonna happen.

The only time I've ever bought a gun and turned it around and made a fast buck, was when I was so happy with my .40 S&W Shield, I bought my wife the 9mm version. She could barely rack the slide (oops, my bad), so I sold it off quickly for a $20 profit in less than a week. Nice annualized rate of return in this instance, but I still don't recommend investing in Shields as a long term investment strategy.

 

[titsonritz]

It's more like a savings account you can play with.

 

[Spitpatch]

Same here.

In fact, I've come home with some pretty nice guns form RMEF and Friends of NRA banquets. They would likely be worth more investment-wise if they remained unfired. Well, that ain't gonna happen.

The only time I've ever bought a gun and turned it around and made a fast buck, was when I was so happy with my .40 S&W Shield, I bought my wife the 9mm version. She could barely rack the slide (oops, my bad), so I sold it off quickly for a $20 profit in less than a week. Nice annualized rate of return in this instance, but I still don't recommend investing in Shields as a long term investment strategy.

A word about commemoratives and "tribute" guns (ie: banquet guns and such).

Rarely do they increase in value very much more than the inflation rate, but more importantly the customer base to sell one is extremely limited. There are a few of the commemorative Winchesters that buck this general rule (John Wayne stuff for example), but by and large they do not increase in value anything like a true collectible (old) Winchester. A commemorative Winchester holds value only as long as it is new in the box, and even then it is imperative to sell to a commemorative collector to recover the investment. A commemorative collector that already has that edition will take no great interest.

Banquet guns, engraved or enhanced to highlight the Organization they represent are generally only of interest to those involved with that Organization: worth very little more (sometimes even less) than a plain jane of the same model.

@Bobbygun did right to take 'em out and shoot 'em.

Don't get me wrong. Winchester Commemoratives have a "value" that I like a lot: Find one that has been shot and/or does not have the box (therefore of no interest to a commemorative collector), and you can usually buy it in the price range area of a regular, unadorned Winchester.

With the heavy, long, new octagon barrel they are incredible shooters!

 

[jbett98]

For me, it was all about upgrading my modest collection of Colts and Smith's. When Oregon imposed the BGC transfer law in 2015, it took all the fun out of it.
Scanning the for sale ads, meeting folks around town and all the interesting conversations with private buyers and sellers.
Now you have to meet them at an FFL and go through all the hoops, it made my hobby more of a hassle and less enjoyable.

 

[barnabus1999]

In the short term 2-3y I've only made money a couple times on Colt. I see it as a way to play for free excluding the price of ammo and other supplies.

 

[Aero Denezol]

If you are a retailer, then buying and selling guns is a good investment. As a private citizen paying retail prices, you can't make money unless you have something rare, unusual, or in demand. A K98 is a good investment. A Springfield Hellcat is not a good investment. It's the same with anything isn't it? Some people make money collecting and flipping old Fender guitars, or rare Nikes. Or Pokemon. My problem is I find something cool for a good price then I keep it, so I'll never see any profit.

 

[Knobgoblin]

A word about commemoratives and "tribute" guns (ie: banquet guns and such).

Rarely do they increase in value very much more than the inflation rate, but more importantly the customer base to sell one is extremely limited. There are a few of the commemorative Winchesters that buck this general rule (John Wayne stuff for example), but by and large they do not increase in value anything like a true collectible (old) Winchester. A commemorative Winchester holds value only as long as it is new in the box, and even then it is imperative to sell to a commemorative collector to recover the investment. A commemorative collector that already has that edition will take no great interest.

Banquet guns, engraved or enhanced to highlight the Organization they represent are generally only of interest to those involved with that Organization: worth very little more (sometimes even less) than a plain jane of the same model.

@Bobbygun did right to take 'em out and shoot 'em.

Don't get me wrong. Winchester Commemoratives have a "value" that I like a lot: Find one that has been shot and/or does not have the box (therefore of no interest to a commemorative collector), and you can usually buy it in the price range area of a regular, unadorned Winchester.

With the heavy, long, new octagon barrel they are incredible shooters!

This is true of many different "collected " items. Manufacturers have created collectable ,or limited specials of anything they want. Prices are high-ish at retail when they launch. If the target audience doesn't care, some of this stuff ends in the bargain bin. Most of the highly sought and valuable items are standard versions. Rarity is most important. And condition always sets the price.

 

[BlindedByScience]

When I was a starving student, I recall reading an ad in Shotgun News (remember that..??) for NIB Class 3 Powder Springs MAC10's with the Scionics suppressor....for $995.00. At the time it may as well have been a million dollars, as I didn't have that either. When I get my time machine working, I'm going back and buying a pallet of them as we know what they'd be worth today.

Problem being, no one's crystal ball is perfectly accurate. Hard to know......

 

[Bobbygun]

Banquet guns, engraved or enhanced to highlight the Organization they represent are generally only of interest to those involved with that Organization: worth very little more (sometimes even less) than a plain jane of the same model.

This is so true. Usually the "enhancements" amount to some fancy grips with maybe an elk (RMEF) or patriot (NRA) on them. Or, maybe the floorplate on the rifle has RMEF or NRA somehow embellished on it. So I say "shoot 'em!"

After perhaps too many beers, I have purchased a gun or two by holding my hand in the air for a prolonged period of time. In such circumstances, I'm underwater the minute the auctioneer says "Sold!" No worries. After all, it's for a good cause. On other occasions, particularly with my lucky wife, the investment in the gun might only be a $20 chance in a card game. When that happens, it would be hard not to make a substantial profit. Other than, you know, not ever selling them.

 

[Spitpatch]

"After perhaps too many beers, I have purchased a gun or two by holding my hand in the air for a prolonged period of time."

Bin dere, dun dat.

 

[solv3nt]

"After perhaps too many beers, I have purchased a gun or two by holding my hand in the air for a prolonged period of time."

Bin dere, dun dat.

I've got a buddy that bought a gun online when he fell asleep. He had it in his cart and woke up to a "thanks for your purchase" email.

 

[Spitpatch]

"I've got a buddy..."

Yeeeah. Sher ya do. Uh-huh.

 

[solv3nt]

"I've got a buddy..."

Yeeeah. Sher ya do. Uh-huh.

Lol! I was selling guns off to pair down the collection. Two years later I realize my net change is zero, but with two cans in jail.

 

[po18guy]

Lotta guys on the Colt forum buy and sell and make a lot of money. Single Action Army, rare 1911s, Boas (Troopers w/Python barrels) going for up to 30K. Stuff like that.

 

[ma96782]

IMHO......
For ME......
The new anti gun laws and politics has severely affected and/or taken much of the profit and fun out of firearms for investment and collecting. Also to some degree, the pleasure of ownership.

The Anti gunners be like......


Aloha, Mark

 

[PDXbiker]

I've always purchased firearms with just the intent to own and enjoy them, the investment angle never came into it. However, I'd be lying if I said I didn't care that my pre-lock Smith 686 sold for a lot more than I paid for it years ago. That and a few more I would call "accidental investments."