Firearms and InFlation

[gjlog]

So, are firearms going to beat inflation or will they become a luxury that loses value as the dollar drops?

[crbutler]

Depends on what you are talking about.

Collector grade guns will continue to appreciate.

Class III will continue to appreciate.

Guns that get banned by the government from further import/manufacture will appreciate.

Most hunting guns and plinkers will depreciate, some drastically as the middle class gets squeezed.

A used Hi point is worth scrap value generally.

A Holland and Holland royal grade double is worth lots more.

A C&R eligible M16 is worth lots more than it was 2-3 years ago.

A Dakota 76 Safari rifle is somewhat depreciated.

A real win 70 pre 64 featherlight is worth something more, assuming its still in a collectable grade.

A Saiga 12 is worth more than it brought 6 months ago.

General statements don't mean a lot.

[PhilaBOR]

I suspect that there will be a baby bust after the great Obama baby boom of firearms sales. Especially if the economy sucks...oh, wait, it does. If you're looking for a reasonable price on a good middle of the road gun, now's probably the time.

If you want to buy new Glocks or M&P's and hold them til they're worth a fortune, ain't gonna happen. Mass-market products don't become rare and valuable (there may be an exception, but I can't think of one). There are Roman coins that aren't worth much today because they made jillions of them.

[SIGP240]

High quality purchases always outrank mediocre purchases, but one must keep focused upon how much the future buyer can afford, and how little you are willing to accept on the future sale. Cheaper, more practical and economical guns ALWAYS sell, the luxury models will only attract the moneyed buyer. But the ratio of "poor" buyers to "rich" buyers may trip you up in cashing in and profiting from your investment. As a hypothetical example, 10 Glock pray and spray pistols for about $3600 in today's dollars will sell in the future for a likely gain; however, a $3600 Wilson may not attract a buyer. As the value of our dollar erodes, the price will go up and up respectively, and this inflationary incline falsely gives the seller a sense of profit. Just don't choke on that $5.00 White Castle! The comment on Class III is true, a plain-jane $225 RPB Mac-10 is worth multiple thousands now.

[solidgun]

High quality purchases always outrank mediocre purchases, but one must keep focused upon how much the future buyer can afford, and how little you are willing to accept on the future sale. Cheaper, more practical and economical guns ALWAYS sell, the luxury models will only attract the moneyed buyer. But the ratio of "poor" buyers to "rich" buyers may trip you up in cashing in and profiting from your investment. As a hypothetical example, 10 Glock pray and spray pistols for about $3600 in today's dollars will sell in the future for a likely gain; however, a $3600 Wilson may not attract a buyer. As the value of our dollar erodes, the price will go up and up respectively, and this inflationary incline falsely gives the seller a sense of profit. Just don't choke on that $5.00 White Castle! The comment on Class III is true, a plain-jane $225 RPB Mac-10 is worth multiple thousands now.

Wilson, Nighthawk, Ed Brown, and some other high end 1911 manufacturers keep getting wait lists.....even through this economic downturn. But yes, high quality costs extra for reasons shared by all enthusiasts.

[Rip Van Winkle]

The problem with collector commodities, be they guns, cars or anything else is they are only worth what someone else is willing to pay you for them.

[DeanC]

Firearms (and all collectibles) rarely beat inflation over the long haul. There are individual examples that appreciate extraordinarily, but it is extraordinarily difficult to know which ones will do so in advance. And it is difficult to compile a portfolio of such individuals.

Plus, with the coming inflationary reaction to the O-Bush-ma Keynesian stimulus projects, inflation is going to be rampant.

[Shipyard]

i have to disagree - a Jennings 25 just sold for over $100 in the marketplace the other day...

by that logic, i should be able to get about $800 for my stock Glock 17 i'm on the fence about

[Scott Notaeh]

Beat inflation? I'll be happy just to avoid having my savings wiped out due to inflation. Nice thing about converting soon to be deflated dollars into real stuff is that real stuff should keep up with inflation. I think there is less risk in the higher volume glocks and stuff than the collectible stuff.

In times of high inflation, seems like guns and ammo will hold their own.

[photogpat]

I think theres a P3AT thats been passed around on here for ~ 2 years now that seems to be holding its value exceptionally well!

[Shipyard]

I think theres a P3AT thats been passed around on here for ~ 2 years now that seems to be holding its value exceptionally well!

don't know what you're talking about.....

[photogpat]

I think theres a P3AT thats been passed around on here for ~ 2 years now that seems to be holding its value exceptionally well!

don't know what you're talking about.....

Ditto -- mines at the bottom of a lake.

[westhope]

Dean C wrote:

Plus, with the coming inflationary reaction to the O-Bush-ma Keynesian stimulus projects, inflation is going to be rampant.

I'm with Dean; this is what I truely believe is going to happen. Governments historically don't raise taxes or cut spending to solve financial problems. They just print money.

How do we protect our retirement savings?

[Rodentman]

I depreciate everything that I have.

[Snakeman721]

One example....I bought a brand spanking new Colt series 70 1911 (5" government model) in nickle finish for $399.95 way back in 1980, What's it worth today? I don't know but similar NEW Colt 1911's are going for over $1000 retail. Better yet, that same day in 1980 I bought a Colt S.A.A for the same $399.95....those are topping $1100 new today. Of course, had I invested that $399.99 in Microsoft back in 1980, well...let's just say that I would have been able to buy several DOZEN new Colts today with those stock gains!