Guns as hedge against inflation?

[gsusd]

is that the reason why I should own more than 3 guns...? :confused:

[Tony.]

No. Buy them because you want them and will use or collect them.

[Blackwater OPS]

Would that be a valid reason why I/we should own more than 3 guns...? :confused:

Great reason, guns hold value exceptionally well.

[biscuitninja]

Yes and i'd do .223 rounds also. Maybe a cache of magpul magazines.
-bix

[trashman]

is that the reason why I should own more than 3 guns...? :confused:

Strictly speaking the answer depends on what kind of inflation you're talking about - price inflation or monetary inflation.

But realistically, if you're buying guns to hedge against *any* economic trends in the overall market, you better not be shooting them!!!

The guys over at the S&W Forum regularly make the distinction: "Collectors" buy guns in premium condition and never shoot them, and focus on special runs, etc., outside the normal production.

"Accumulators" (of which I am one) have tendencies much like collectors but will happily buy a 70% "shooter"-grade gun to refinish or shoot if the price is right. A "collector" will walk away. Accumulators shoot what they buy.

So, assuming you are an "accumulator" and not a "collector", buying guns isn't a real great idea as a household-scale hedge of any kind (except TEOTWAWKI situatinos :) )

--Neill

[maxicon]

Yeah, for asset appreciation, gun collecting requires knowing what will hold its value well and not be a bubble item.

For just plain hobbyist stuff, though, guns are a good bet. Buy good quality, low mileage used gear at reasonable prices, and it'll hold its value for years, appreciating slowly. Buying new causes something to lose 20-30% of its value the first time you shoot it.

I've got fun guns, bought used, that are still worth what I paid for them, despite me shooting them on a regular basis over the years. How many hobby items can you say that about?

[Max-the-Silent]

Nobody better tell my wife this, but with certain exceptions, firearms are poor investments.

The reality is that even when you have a valuable example to sell at a reasonable price, you have to find a willing buyer - and wade through the army of individuals that will tell you with a straight face that your NIB ASP, Joe Poyer Aussie L1A1, Pachmayr Combat Special or first generation Colt SAA is worth, at best, $200.00 and that out of the goodness of their heart they'll take it off your hands...and take offense when you tell them to go pound sand. BTDT.

If you have historically significant firearms to sell at auction, transferable NFA weapons, or pristine double rifles made by noted custom 'smiths, or AW's during times of uncertainty, you might be good to go, but buying a common factory produced currently manufactured firearm as any sort of investment other than an investment in your safety or happiness is foolish.

[Beelzy]

Yes, as long as you avoid junk guns. Stick to popular calibers and makers and
you won't lose any money. That you can be sure of.

If you wish to be speculatory, you can buy futures in Ban-able firearms.
Some I know are doing that now. ;)

[Mitch J]

Just like the stock market, Buy Low, Sell High.
If you cant do that then it is not an investment.

[tombinghamthegreat]

Firearms are a decent investment(assuming they are NFA, collecters, AW ect.) if you compare them some other products. For example a video games, they are expensive when you buy them but in a few years that 50 dollar game everyone was talking about is now worth at best 5 dollars. Now guns can retain their value or go up slightly over a long period but in conclusion as Max-the-Silent pointed out if you are buying guns to make money or ride out a recession then its not such a good idea.

[AJAX22]

I've only lost money on one firearm that I've purchased.... well two if you count an old civil war pistol I had but technically it wasn't a firearm and I gave it up cheap because I was getting a screaming deal on a pair of ruger MKI pistols... the other was a Henry made ar7 that I just hated and wanted to see gone

guns do hold their value extremely well (particularly C&R long guns), because its not like its hard to sell a gun, and you have to beat people off with a stick if you're selling a gun that doesn't require paperwork to purchase.

I would recommend sticking to mid range/relatively inexpensive firearms and buying in as large a lot as possible (to minimize dros and ancillary fees)

high end firearms make great long term investments but they can be harder to liquidate for full value while a used glock will always sell, and you will always get a good market price for it. (and glock adjusts their pricing to cover inflation just about every year)

Another good long term investment are firearms which stand a good chance of getting banned or discontinued in the long run, the tricky thing on these is to know when to enter the market since you want to buy when supply peaks but demand is low (for ar15 receivers this late spring and summer was the perfect time to buy)

If I had to buy something to hold onto right now with the intention of holding it as an investment, I think I would get a number of MP5, G3, etc receivers or even get some of the receiver flats and make my own for my own personal use which I could decide to sell years later if I tire of them... (not really cost effective if you are not going to make several dozen of them)

another option is CMP rifles... M1 carbines in particular hold value spectacularly... I actually wish I had a dozen of hose in my collection just for long term speculation... once supply runs out, the m1 carbines will probably start edging upwards towards 1200-1400

anyway, I invested lots of money in guns before I took off for school (every dime I had that I didn't need to stay liquid pretty much) I'm just a 26 year old college kid, but if I liquidated all my guns, ammo, parts, mags etc. the total would run somewhere between 35 and 40k (assuming I got a high market price for them. I didn't spend that much to buy them (and selling everything would break my heart) but its a sound investment which is not depreciating and is not subject to the effects of inflation.

Since I am not really at a point in my life where I can own my own house and be building wealth through real estate, holding my personal equity in firearms makes sense for me.

A firearms collection is basically a bank account you really really really don't want to touch....

And anything which encourages you to build personal equity that you actually enjoy (and you can liquidate without loosing money) is a great thing...

If owning gold bars was as much fun as owning guns, I'd collect those... but I get more kicks from firearms thankfully.

keep the peace

[JeffM]

+1 to what ajax said.

I've got a considerable amount invested in Romy G AK kits and my return if I sold them would be close to 300%.

Right now I'm looking for some plain-jane guns that people are getting rid of cheap to buy OLLs etc.

[AJAX22]

+1 to what ajax said.

I've got a considerable amount invested in Romy G AK kits and my return if I sold them would be close to 300%.

Right now I'm looking for some plain-jane guns that people are getting rid of cheap to buy OLLs etc.

I've got some sks project guns I'd swap ya for some of those ak parts kits ;)

I'm still a few ak's away from hitting my stockpiling goal. (and now is a really bad time to be buying any sort of semi auto rifle... with the exception for tube fed .22lr's which can be had for dirt cheap)

[JeffM]

I've got some sks project guns I'd swap ya for some of those ak parts kits ;)

I'm still a few ak's away from hitting my stockpiling goal. (and now is a really bad time to be buying any sort of semi auto rifle... with the exception for tube fed .22lr's which can be had for dirt cheap)

Not likely :p

I'm still well short of my desired numbers as well.

If I stumble on some for a good price (and I'm not buying them all) I'll let you know :D

[pizzatorte]

Unlike fiat currency, the value of a gun will not go to zero.

pictures from Zimbabwe (http://www.boncherry.com/blog/2008/10/26/global-crisis-this-is-the-real-crisis/)

http://humorland.wordmess.net/files/2008/10/zw020.jpg

[GW]

So what did 1 billion Zimbabwe bucks get you for dinner?:p

[AJAX22]

So what did 1 billion Zimbabwe bucks get you for dinner?:p

Dang that was way back in march too.... I wonder how bad it is now...


that money is seriously cheaper than toilet paper