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Old June 23, 2013, 02:07 AM   #1
Machineguntony
Senior Member
 
Join Date: June 22, 2013
Posts: 1,277
Machine guns as investments

I recently got back into the shooting sports.

Coincidentally, I am also looking at investments. I have money that I woul like to invest and I have cash that currently is earning half of 1%.

I decided to buy machine guns as investments because of several reasons:

1. The supply can only go down because of the 86 ban. So even if demand stays constant, the supply every year dwindles. This means higher values. This is only true of NFA machine guns.

2. Entry point to is relatively low for high end 'best of class' products. Compare a m16a2 or a tommy gun to a Picasso. An m16a2 complete and all original is $30,000, compared to millions for a Picasso.

3. The only risk of loss of principal is if the NFA is repealed or declared unconstitutional. I'm betting this will never happen.

4. It's fun and it makes you money. Anytime I buy a new sig or HK or a new rifle, it's purely a expenditure with no expectation of a financial return. With machine guns, you enjoy the investment and you also get to have lots of fun with it. Even with investments like classic cars, you can't drive them around all that much. I can not think of a single investment where you get to play with your investment (staring at a Picasso, while enjoyable, doesn't qualify as fun).

I'm currently awaiting transfer of about $85,000 worth of guns, and if the transfer is smooth, I'm going to buy some more, $100,000 at a time, until I've spent enough on machine guns. I am only going to buy original m16a (not AR conversions), mp5s, and tommy guns.

According to my projection, machine guns will return about 8-10% per year, at the very least.

Does anyone else invest in machine guns? Does anyone disagree with me and think that, outside of the NFA being repealed or declared unconstitutional, machine guns will go signifcantly go down in value?

My guess/hope is that in 20 years, my m16s will be worth about $100,000 each.

Last edited by Machineguntony; June 23, 2013 at 03:03 AM.
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