View Single Post
Old July 3, 2013, 05:33 PM   #21
Machineguntony
Senior Member
 
Join Date: June 22, 2013
Posts: 1,277
I like the idea of machine guns as investments for so many different reasons.

1. They are serious investments and they are fun! You can't take out a 401K and play with it. I have a friend who invests in high end artwork, and he thoroughly enjoys it. Further, he has never lost money on a piece of high end artwork.

2. Other than old collectibles, no other gun will give a possible return. Sure, an m16a2 may run $30,000+, but its actually cheaper than a Sig 226 at $900 or any other modern gun. Why? Because the 226 won't go up in value, and the moment you take it out of the dealer's store, it drops in value. NFA items have historically proven to only rise in value. This means that the $900 you spent on the 226 or USP or 1911 is gone, and only about half the value is left in the gun, whereas every single dollar, all $30,000 of it, is still impounded in the m16a2.

The main reason machine guns are a good investment is this...

3. The pool of available NFA transferrable machine guns will NEVER ever increase. It is estimated that only 100,000 - 250,000 exist, with many being turned into authorities on collection days or just being lost or destroyed. This means demand is always increasing while supply is always decreasing.

The value of a collectible is based on supply and demand, and the existence of a marketplace to create liquidity. I can not think of a single investment grade collectible that where supply is big enough to create market place liquidity, and where the supply always shrinks, while demand is always increasing.

Gold, they can always mine more of it.

Land, they can always develop more of it.

Stocks and bonds, they can always issue more of it.

NFA transferrable machine guns, there will never be more.

Artwork, antiques, and even collectible guns like Colt revolvers, are not all that liquid because to get fair value you have to auction them off.

Of course, there are risks, for example, theft, destruction, or legislative interference.

As far as legislative interference, I highly doubt that the NFA or the '86 act will ever be repealed. The courts have opined that machine guns are dangerous and unusual and not protected by the second amendment. So I sleep easy at night knowing that the only president that might move to repeal the NFA is President Rand Paul.
Machineguntony is offline  
 
Page generated in 0.03245 seconds with 8 queries