Firearm Depreciation

[84VETTE]

So I was just Involved in a long drawn out argument with some of my less firearm educated room mates, My point was that I believe that the purchase of some guns can be a safe investment, granted that interest is not acquired over the time that the gun is owned before it can be possible sold, but the majority of most firearms do not lose their value as much as most tangible property one can choose to invest in. This all began when I brought up how my purchased of a Rock Island 9mm AP9 was a somewhat safe investment as long as I properly maintained it and kept it's like new condition. Id just like to hear everyone's input in the sense that most guns hold their value better than a lot of alternatives someone could choose to make an investment in. Personal value and attachment to such firearms were brought up but did not fit into any category my econ major room mate could think of. Sadly they were in need of some education.

 

[UncleMike]

Guns, for the most part, are like diamonds and land.
They keep going up in value, and they stay ahead of inflation.
At least that's been my experience over the last forty three years.
Mike

 

[libertybear]

I look at it like gold. It's worth something and stays that way. When the dollar depreciates it does not nor does the gold making them worth more dollars.

 

[CountryBoy19]

While the value of guns does go up, I doubt they outpace inflation; they likely don't even keep up with inflation (if they're used).

I'm no econ major so I'll try to stay out of the deep stuff.

Regarding return on investment, unless you bought some weird, unusual gun that suddenly became valuable, you likely won't see your full purchase price adjusted for inflation unless the gun is NIB and isn't very common, or is highly desired NIB and can't be purchased new anymore.

There are other things that hold their value/increase their value much better and they're also most stable. Land and gold/precious metals are 2 of the largest.

However, you have to consider that some people are interested more than just the return on investment; they're interested in the future. Guns could potentially be a "wise investment" if someday you need those guns. Investments aren't "just about the money" all the time.

Do you see what I'm trying to say?

They may not be the best financial investment, but they can still be a wise investment.

Me? Well, I'm concerned that someday my children won't be able to buy some of the guns we have the luxury of having today so I buy as many as a can, stocking up for that day when I'll pass them to my kids, and they'll pass them on to their kids etc.

 

[Delmar]

What about buying good used guns?

 

[Leadeye]

As long as they are in good working order I think you get your best value for the dollar out of used firearms.

 

[shibumiseeker]

The actual answer is it depends. Like any investment it's possible to make money and it's possible to lose money. The general answer is that guns as a whole do not keep pace with inflation, but they depreciate much less than other durable goods.

Many guns do not keep pace with inflation. Others, depending on legislation (who here doesn't wish they'd bought a crate of $600 full auto Uzis in 1986???) can appreciate wildly. Others will mostly keep pace with inflation if unused, and a few will actually appreciate in value as collectors items up to a point.

Guns are a good investment in that it's almost always possible to sell them. As real property they have an intrinsic value. I would rather have a couple hundred $k in guns than in stocks if I had to choose between the two, but you can be assured that those would be more collectors items that I never shoot, not workaday guns.

 

[42769vette]

my father bought a belguim browning sweet 16 with all the gold inlay in the early 80s for 600 bucks. today its worth ? (alot more than 600 bucks)

my glock is not going up in value. it depends on the type guns you buy

 

[smoking357]

As long a firearm depreciation is less than the rate of inflation, then the firearm will be a store of wealth. It is unlikely that an average gun, say a Beretta 92, will outstrip inflation, so it's difficult to call that gun an investment.

Guns that have secondary worth as collectible pieces may be "investment grade," but they lose all of this investment quality if the SHTF and people merely want to defend themselves and eat.

Further, any gun you purchase has to be for personal use and not for later resale, so be very careful about stating your intentions regarding your buying habits.

 

[dyerwatcher]

Some of the smarter money I spent in the early eighties was on my Colt Officer's ACP and my Colt Python - wish I would have bought all I could of put my hands on.

 

[tuoder]

Guns are not proper investments as they earn no dividend or interest. If you buy a gun with the intention of using it as a store of value, you're speculating. If you want a safe investment, go buy some bonds or a CD or even some stock.

 

[42769vette]

(who here doesn't wish they'd bought a crate of $600 full auto Uzis in 1986???) can appreciate wildly. Others will mostly keep pace with inflation if unused, and a few will actually appreciate in value as collectors items up to a point.

.

Guns are not proper investments as they earn no dividend or interest. If you buy a gun with the intention of using it as a store of value, you're speculating. If you want a safe investment, go buy some bonds or a CD or even some stock.

my guess is the folks who did this got a pretty good return on there money

 

[Snowden]

What about milsurps? I know Kar98k's used to be dirt cheap, and they're going up in value now that the supply has dried up. Are they doing better than the pace of inflation, though? Also, could one invest in Mosins expecting the same to happen when those dry up?

 

[leftsock]

I'm not so sure that we should use firearms as an investment vehicle.

The problem is that we can make more firearms, which reduces the value of the existing supply. Consider this as opposed to an investment in gold: we can't make more gold. Sure, we could find more gold, and it would have a similar effect in reducing the value of existing gold supplies.

If you buy a gun with the intention of using it as a store of value, you're speculating.

Yes! Exactly. When we say we're "investing," replace that with the word "gambling." We're gambling on the future. When you buy or short stock, gold, firearms, or pork bellies with the intent of selling or buying it in the future at a profit, you're saying that you bet that something will occur that will cause the price to change so you can sell or cover your short at a profit.

The more information we have about what will happen in the future, the less our actions resemble gambling. But at that time, everyone else has caught on too and the rewards aren't as high.

 

[clt46910]

If you are careful and know gun values, you can make money. They are a much better return or investment then gold, bonds, or stocks.

I seldom lost money on any gun over about 40 years of dealing. Many times I ended up with having no invested money in my collection. Most my money is now in my collection, most will maintaining the value and at least some of them are growing in value. One just have to learn what is a value and what is not.

 

[snorko]

I just ran some numbers on three firearms of good quality and condition, which I owned over 15 years then sold. Listed below are the model, purchase price, holding period, sale price, overall average return and the CPI for the same period.

Colt 1991 Officers / $450 / 17 years / $850 / 3.8% (cpi 2.5%)

S&W 629 Classic / $500 / 14 years / $625 / 2.1% (cpi 2.5%)

Winchester 94 Trapper / $295 / 15 years / $550 / 4.24% (cpi 2.5%)

Draw your own conclusions. As they say, money is made on the buy. Ten years ago Pythons were relatively cheap, look what they have done now. I enjoyed all of the above for years, though, and that enjoyment was the bulk of my derived "appreciation"

All were bought new from a dealer.

 

[Jack Ryan]

So I was just Involved in a long drawn out argument with some of my less firearm educated room mates, My point was that I believe that the purchase of some guns can be a safe investment, granted that interest is not acquired over the time that the gun is owned before it can be possible sold, but the majority of most firearms do not lose their value as much as most tangible property one can choose to invest in. This all began when I brought up how my purchased of a Rock Island 9mm AP9 was a somewhat safe investment as long as I properly maintained it and kept it's like new condition. Id just like to hear everyone's input in the sense that most guns hold their value better than a lot of alternatives someone could choose to make an investment in. Personal value and attachment to such firearms were brought up but did not fit into any category my econ major room mate could think of. Sadly they were in need of some education.

Don't take my word for it. Look at the classifieds and tell me how many of those guns you'll buy used for the same price you can buy a new one.

 

[XDinmyXJ]

Unlike Cars though, when you throw a bunch of money at a gun and add all kinds of nifty stuff you actually raise the value. If only this was true with my Jeep!

 

[451_Detonics]

I think firearms are a lousy investment or at best a mediocre long term investment. When you buy a new gun it is now a used gun, doesn't matter if you shot it or not...it is now used and takes a price drop. Buying used is somewhat better but only if you keep it in the same condition it was in when you bought it. If you are willing to hold onto a gun for 40 years then you will likely see an increase in it's value but in the short term....nope.

Gun tend to increase in value very slowly unless there is a radical change in the laws concerning ownership. Problem is how to predict what will happen in the future. The best investment today is probably real estate...not houses necessarily but land itself. Good farmland can be bought, will go up in value as time passes and can earn steady income through being rented to farmers.

Of course this doesn't count the deals were you get a firearm at a greatly reduced price such as when you buy one from a guy who desperately needs cash right now. You can make money from deals like that but the firearm itself didn't increase in value.

 

[ryanrw]

There are too many factors. Laws, change in the value of a dollar, plants closing, firearm makers being acquired by other makers (sometimes better, sometimes worse).

There are a few firearms throughout history that were probably a very good investment in the long run, but only a very low percentage.