Guns vs. cash

[Chunkychuck]

It's weird to consider all possible future events?

What should his investment plan be for an asteroid strike, or a comprehensive gun ban?

My guess is the OP will rank all his options and then make his decision based on his opinion of what he thinks are the most likely future outcomes.

[codilly]

You can always sell every time there is a scare, then invest the profits into a college account and then buy again when the scare is over.

[jdege]

In my mind, the best thing you can give to a 16-month-old is health.

As in, how about making a habit of having sit-down meals, involving real, cooked food. Instead of all the processed, industrial food-like substances that make up such a large part of the Standard American Diet.

http://www.westonaprice.org/childrens-health/traditional-diets-for-healthy-children

[Evad]

It's weird to consider all possible future events?

*All* future events? Yes, it certainly can be.

What should his investment plan be for an asteroid strike, or a comprehensive gun ban?

Of course, he could diversify for all of the least likely options possible, but then you're slicing that pie pretty thin.

I am buying jet skis in case waterworld was a prophecy and not just a bad movie.

[grousemaster]

I have a 16 month old daughter, who already owns a couple guns....that she doesn't know about yet (well, understand anyway)

My question is this: I want to save up some assets for her so when she turns 18 she can either sell to use for college expenses, or keep them. What's a better investment, a couple grand in cash in the bank (or a college savings account), or a couple Colt 6920's sitting new in box?

Seems like only 16-17 years isn't going to be enough time to really inflate the cost of the Colts to the point of making a big difference. If you put the cost of them into a 529 (as Hoot recommended) that wouldn't make much difference either.

Just a guess but I'm thinking you're putting too much time into thinking about what will end up being 2% of her total cost of college. (I really hope I'm wrong about that!)

Of course, I could be wrong too. /shrug

Edit: Oh.. also, it is very difficult to predict what the future may hold regarding the legality of selling firearms. Worst case scenario you keep the Colts and can't sell them for her college fund because it'd make you a felon. /gulp

1 month was all it took to triple the price of the Colts this year....I think betting on future gun rushes is about as safe as an investment as there is.

[yuppiejr]

Diversity is key to any sound investment strategy, just buying guns puts you at a certain risk to whimsical ban legislation or an extended supply glut in the market down the road if you need to sell inside of the 4-8 year boom/bust cycle we've seen lately. I'd mix it up a bit, probably best to talk to a financial planner, one of those that sells portfolio management and good advice (not the guy trying to sell you on American Funds, etc..). Heck the investment in a class about personal finances and investing for you that in turn allows you to create and manage a portfolio for her AND the ability to pass on the knowledge of such things could be invaluable to everyone involved.

[XDM45]

The sad fact is that nothing you do will help if the economic collapse that many believe is coming actually happens. Most will not have the resources to buy guns. They will be concentrating on surviving. Ammunition would be a better investment in my mind even as high as it is right now because your guns are pretty much useless without it.

+1

IF and when that happens (and I believe it will...), the currency will be:
guns
ammo
tools
hardware/building supplies
shelter
food
clean water
drugs / medications
sex
gold, silver, copper, etc.

Now as for riches within the current society and financial structure; the key to wealth is a diversified portfolio with multiple income streams of both active and passive income. (Active income = working for someone or yourself, limited due to only so many hours in the day and you can only do so much at once. | Passive income = investments which grow without much intervention from you.)

Hard assets (gold, silver, land, etc), soft assets that are pretty much virtualized these days, IRA, EFT, Mutual Funds, Stocks, Bonds, etc.) are more or less passive income. I have some investments that are getting me 13%-15% annually in a positive return, a life insurance policy which gains 2% annually (better than any bank account), some of the aforementioned hard assets, etc. One of the biggest things you can do is pay off any debt you may have. If you are paying 29% interest on some credit card debt and you're only getting 0.5% return in your bank account, you're losing money. My biggest thing like that is my house at 4.5%, thus why I make extra payments to get it down and paid off. If I were going to stay there forever, I'd just write the check pay the house off, but I doubt I'm going to be in MN forever.

[Deputyhiro]

Diversify. Have a little bit of everything. Dont put all your eggs in one basket so to speak. If the economy collapses, I dont see where precious metals will be worth anything. How is a gold bar going to help you survive? Guns/ammo/tools/food/water.... And yes, sex.
You people that say it could never happen, I feel sorry for you IF it does.

[20mm]

If the economy collapses, I dont see where precious metals will be worth anything. How is a gold bar going to help you survive?

You give me shiny gold bar and I give you food, ammo, shelter, etc. It's called supply and demand.

[goda0301]

Look back only 10 ago and see what firearms were selling for and compare to pre sandy hook pricing... we all know the 529 plans but im willing to bet by the time you go to cash in that tax free education fund, our friends in the Gov. will have already taxed them as well as all other froms of pre-taxed retirement funds... its only a matter of time... before they tax it all. 401k, emails, The less the Big Brother knows the better... Just my 2 cents. Firearms will always always be a safe investment.

[Deputyhiro]

If the economy collapses, I dont see where precious metals will be worth anything. How is a gold bar going to help you survive?

You give me shiny gold bar and I give you food, ammo, shelter, etc. It's called supply and demand.

Today you would. If the economy collapsed, and food/ammo/etc were in short supply, you would trade yours for a gold bar? What are you going to do with it? Beat yourself over the head just to put you out of misery?

[Heffay]

If the economy collapses, I dont see where precious metals will be worth anything. How is a gold bar going to help you survive?

You give me shiny gold bar and I give you food, ammo, shelter, etc. It's called supply and demand.

Today you would. If the economy collapsed, and food/ammo/etc were in short supply, you would trade yours for a gold bar? What are you going to do with it? Beat yourself over the head just to put you out of misery?

Survival fetishes. It's kinda creepy to see, I have to admit.

[Deputyhiro]

You give me shiny gold bar and I give you food, ammo, shelter, etc. It's called supply and demand.[/quote]

Today you would. If the economy collapsed, and food/ammo/etc were in short supply, you would trade yours for a gold bar? What are you going to do with it? Beat yourself over the head just to put you out of misery?[/quote]

Survival fetishes. It's kinda creepy to see, I have to admit.

So is a pink sparkly pony for a grown man's avatar..... But who am I to say?

[BigDog58]

FWIW Back in the early 80's I purchased to AK-47's that had Select Fire (Semi and Fully Automatic), uyes I paid to get my stamps. Both were made in Russia, and I took good care of them, and truly enjoyed shooting them, once or twice a year. I sold one in 1999 and sold it for nearly 500% more than I originally paid for it. The second, I sold in 2002, just befote I moved to MN. I sold that one, for nearly 800% more than my original purchase price ( yes, I am still kicking myself for selling them). I don't really know how much inflation increased during that time frame, but I considered both of them as excellent investments.

I'm not saying this will happen with all guns, but I do feel that if you can locate a few desireable weapons, there is a high likelihood that their value will continue to grow, faster than what a bank will pay you in interest on your cash. It is true, that they could be reduced to zero resale value, but if things take a dump, like some here have suggested, you will be able to take care of your family in bad times.

Besides, you'll have fun teaching your child to shoot, and how to be self sufficient and able to defend themselves, should they need to.

[AgAuTHORITY]

One Colt, one Kruggerand