are firearms worth the investment?

[Highwall]

I bought a SS Ruger  Vaquero  in 1994 for just under $400.  The guy I sold it to for $650 a some years later told me he just sold it for $1200!

It makes me wonder what my Wichita International is now worth that I paid $400 for back in the day.

Not to mention my Browning 1885!

Edited September 16 by Highwall

[Lawdog Dago Dom]

Let it go.

 

You lucked out and got to take a cute cheerleader to a dance in High School before she started going steady with the star quarterback.

 

You had a great time, but you both moved on.

 

Enjoy the memories.

[La Sombra]

@Lawdog Dago Dom for the win!

And the short answer is no. (Unless you’re buying really expensive guns with  provenance to famous folks.) Also inflation plays a part.

As for your Wichita, it is worth what someone is willing to pay you for it. Sorry business, not personal.

 

La Sombra

[watab kid]

nothing is worth the investment unless you like it and want it , there are things to put your money in that make you more , but some of us buy the firearms we really like because we like them - they generally hold value and can accrue added value , but thats not why we buy them initially , 

[Rooster Ron Wayne]

I always bought what I was willing to keep .

That way it did not matter if the value went up or down .

I bought it too use it , because I liked it .

But I have bought some stuff that went threw the roof years later .

Look at the price of the Baby Vaquero 32H&R mag guns .

Years ago .

I bought 4 of them and two was consecutive numbers .

I bought them new from the dealer for 250.00 a gun .

And look what that gun sells for now .

WOW !

[Captain Bill Burt]

I keep an inventory of my guns in a spreadsheet. It includes serial numbers, what I paid for it and I periodically update values based on Gunbroker sales prices.

 

I’ve never purchased a gun as an investment, I buy them to shoot them, but nevertheless my ROI on my gun collection is pretty good.

 

If I sold every gun I’ve purchased in the last 15 years I’m confident I would double my money at a minimum.

 

Whether your gun collection is a good investment or not is determined pretty much the same as purchasing stock, timing and selection matter. 
 

If you purchase during a peak in valuation, or choose poorly (Sig P320 for example) you’re not going to get a great ROI. If you choose wisely then watch the market, get a feel for values then wait for deals you’ll do much better.

Edited September 16 by Captain Bill Burt

[Badlands Bob #61228]

10 hours ago, Highwall said:

I bought a SS Ruger  Vaquero  in 1994 for just under $400.  The guy I sold it to for $650 a some years later told me he just sold it for $1200!

 

If you had taken that $400.00 in 1994 and invested it an S&P 500 index fund, it would be worth $9,531.37.  Guns are not a good investment, as far as investments go.  They usually hold their value and some even go up in value some, but don't think of them as investments.  They are collectables and for enjoyment.

[Captain Bill Burt]

33 minutes ago, Badlands Bob #61228 said:

If you had taken that $400.00 in 1994 and invested it an S&P 500 index fund, it would be worth $9,531.37.  Guns are not a good investment, as far as investments go.  They usually hold their value and some even go up in value some, but don't think of them as investments.  They are collectables and for enjoyment.

The current yield on 30 year US treasury bonds is 4.66%, which means it would take approximately 15.5 years to double your money.  So $400 dollars invested in a 30 year 4.66% US T bond in 1994 would be worth about $1,600 today.  Does this mean treasury bonds are not a good investment?  No, because of one very important consideration that hasn't been addressed in this thread, risk.  Investing in equity is much riskier than buying a non depreciating asset.

 

Go back 3-4 years and that $400 invested in the S&P in 1994 is only about $5,000.  Flash forward 3-4 years and it might be $14,000, or it might be a whole lot less.  Meanwhile firearms will slowly appreciate with very few dips in value.

[Frontier Lone Rider]

11 hours ago, Highwall said:

I bought a SS Ruger  Vaquero  in 1994 for just under $400.  The guy I sold it to for $650 a some years later told me he just sold it for $1200!

It makes me wonder what my Wichita International is now worth that I paid $400 for back in the day.

Not to mention my Browning 1885!

I buy what I shoot.  I also have a Browning 1885 that I purchase many years ago.  Since I already had five other 1885s, I never got around to shooting the Browning.

 

But, at age 77, I am looking around at some of my firearms and thinking which of these will I never shoot again.  I am currently starting to part with some of those.  I have sold some at below cost or way below market value to new shooters just getting started.  Obviously, I am not in this to become rich.

[High Spade Mikey Wilson]

2 hours ago, Captain Bill Burt said:

I keep an inventory of my guns in a spreadsheet. It includes serial numbers, what I paid for it and I periodically update values based on Gunbroker sales prices.

 

I’ve never purchased a gun as an investment, I buy them to shoot them, but nevertheless my ROI on my gun collection is pretty good.

 

If I sold every gun I’ve purchased in the last 15 years I’m confident I would double my money at a minimum.

 

Whether your gun collection is a good investment or not is determined pretty much the same as purchasing stock, timing and selection matter. 
 

If you purchase during a peak in valuation, or choose poorly (Sig P320 for example) you’re not going to get a great ROI. If you choose wisely then watch the market, get a feel for values then wait for deals you’ll do much better.

 

I agree with Captain Bill 100%. I started collecting and shooting military surplus firearms 20 years ago when you could purchase a nice one for under $100 out the door. Now since the sources have dried up those same firearms are commanding $400 and up. I started selling off just my duplicates and already more than recouped my original investment for all my milsurps, and I still have a safe full left.

 

[John Barleycorn, SASS #76982]

14 hours ago, Highwall said:

I bought a SS Ruger  Vaquero  in 1994 for just under $400.  The guy I sold it to for $650 a some years later told me he just sold it for $1200!

It makes me wonder what my Wichita International is now worth that I paid $400 for back in the day.

Not to mention my Browning 1885!

$1200 for one Vaquero? I think he should have shopped around. They may have brought that during covid but they have dropped back to pre-covid prices. Was it a rare 38-40 or 44. Special? 

[Rye Miles #13621]

I’ve made a few bucks and also lost a few bucks on firearms. All in all I’d say I probably broke even over the years. Not a great investment. You’d make more on a decent CD .

[Windy City Kid]

14 hours ago, Highwall said:

The guy I sold it to for $650 a some years later told me he just sold it for $1200!

Like they said about Pee Wee Herman, somebody saw him coming. 

[Mezcal Charlie]

I’m able to give what I think is a good perspective. I had a bunch of guns I had purchased and I got sick(cancer and a couple ancillary issues) I sold many of my guns so my wife wouldn’t be left with that challenge. And because I feared her not getting full value. I made money on 90%, broke even on 5% and lost on 5%. They were a good investment. As good as the stock market but safe.

However, I’m still here and getting slowly better and returning to CAS. I’ve bought two Uberti lever guns: 1873 in 45 and 1860 in 44-40. Both for under $800. I had sold my 1873 and 1866 for $1,500 and $1,100 respectively 3-4 years ago. 1897 shotgun today was $505 and sold the previous for $1,200. Both were 1952 models for n excellent shape. My Vaqueros went for $1,500 and $1,800 per pair. Replaced for $1,300. 
My point is that CAS is in a slump with lower demand. Timing is everything I guess. But if you don’t get your price, wait. Guns don’t eat. They don’t occupy too much space and will always be in some demand. 

[irish ike, SASS #43615]

I just sold a Colt Python. Still had the original box and only about 500 rounds put through it. I bought it for $400 new in 1979. Sold it for $1,800. Based on inflation I got my money back but no return.

[Tom Bullweed]

Pre-lock S&W target revolvers, Colt Pythons and Colt Anacondas all were gaining in a value in recent years.  New production of these has caused prices to stabilize or drop.

[watab kid]

i paid a premium price for an uberti 1866 in 22lr , i knew it and i wanted it , if i loose money i dont care if i gain it it will not be me benefitting - ill be gone , i have quite a few rugers as you discussed , im sure i could make money on those but i like them , it will be my heirs selling those too , unless im dieing and need cash for my widow  

[Waimea]

Only three things I ever made money on besides my time: real estate, guns and lead.

 

[Chantry]

Unless they are rare or unusually valuable, probably not when you account for inflation.

 

If sold through a gun store, they are going to take their percentage.

If sold through an auction house, they usually take a percentage from the buyer AND the seller.

 

You MIGHT make money, including inflation, on a private sale, even if it requires an FFL transfer fee.