Of all the things guns are, I am sick of hearing that firearms are an investment. They are not.
While many guns will hold their value, and some do appreciate in value, they are not an investment.
The classic argument I commonly see and get told is that if you bought a M16 in 1986 for $1000, it would be worth about $20,000 today.
I point out if you bought $1000 worth of Apple stocks, you would have about three million as of when I am writing this article. Now that is an investment.
Last person I pointed that out to said, “But you have no idea Apple was going to do well, a gun is a gun.” Or something like that.
Had you just put that $1000 in the equivalent of a S&P500 index fund with dividends reinvested you would have around a million after inflation.
Well, what if you had bought a Mini-14? I’m told you could get a Mini-14 for about $400 back in the 80s. That is about $900 now counting for inflation. Walmart was clearing out Mini-14s for $400 this past month. Used Mini-14s can be found for sale in my area for $450.
So, had you invested in a Mini-14 you would have lost money. You might have had a better profit margin had you invested in a Tec-9.
The best thing about guns is that they are an assets you can use (as long as you maintain them, and can feed them). If you don’t have ammo your gun is a really awkward club. If you don’t maintain it, it will degrade into worthlessness.
Look at cars, a 2004 Toyota Corolla is not likely to become a classic collectible anytime soon or ever. Similar with your average firearm. Some will, as there are plenty of classic cars people like. But the market changes. I hear how the muscle cars from the 50s and 60s that were very valuable a decade or two ago, are not selling well now since we have a new generation of car collectors that only care about the muscle cars from their youth.
So, if you had a massive collection of vintage pinfires you might have a much harder time turning around and selling them for a profit. Or even look at revolvers and bolt action .22 rifles. The resale market for those have tanked.
Your firearms are assets. When you use them they depreciate in value and if you don’t take care of them they will become valueless.