Hobbyists and enthusiasts are willing to pay higher prices for collectable items, and in the case of guns, firearms can be both profitable and collectable. With demand in the U.S. at record highs, many consider purchasing specific weapons for the value of resale. However, firearm enthusiasts appreciate the function and history of weapons, often seen in the pricing strategy of a limited edition firearms dealer. There are several positives of investing in guns.
1. They Maintain Value
Most people won’t spend their time on the range shooting collectable or antique guns. However, there is generally little negative effect on shooting a collectable gun if it is well-maintained and cleaned after use. Traditionally, rare guns hold their value and more if they are still in firing condition.
2. They Are in Demand
Even with the regulations concerning ownership, background checks and specific weapon bans, the demand for guns of all makes and models hasn’t diminished. Assault rifles and the ammunition for them are in high demand, driving the prices of the weapons up. The result of this increase in demand and pricing has seen an increase in the share prices for manufacturers that makes certain weapons, such as Smith & Wesson Holding Corp. Wealthy investors have also chosen collectable guns are a place to put their money.
3. They Gain Notoriety
Many buyers look at who owned a gun as a way to assess value. For example, champion shooters who sell or auction off their weapons may see as much twice the original asking price as an opening offer. A pistol that John Dillinger carried was once auctioned for $95,000. However, the quality of the firearm is also a determining factor in choosing a value. Certain manufactures have more worth than others.
Though simple to make, guns follow the traditional patterns of supply and demand. Getting in on the investment with the demand is high and supply is low is the best way to make money in the trade.