Is It Actually True That Guns Are a Good Investment? (2024)

By Alexa Mason

At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners who compensate us. This doesn't influence our evaluations or reviews. Our opinions are our own. Any investing information provided on this page is for educational purposes only. The College Investor does not offer investment advisor or brokerage services, nor does it recommend buying or selling particular stocks, securities, or other investments. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. TheCollegeInvestor.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. TheCollegeInvestor.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

Is It Actually True That Guns Are a Good Investment? (1)It can be a controversial topic — much like investing in medical marijuana. But are guns a good investment? They definitely can be.

High-quality, well-maintained guns rarely depreciate. However, nothing is certain. In the past several years there has been a ton of talk of tightening gun laws and even banning certain guns altogether. Since you can’t predict the future, just like anything else, investing in guns can be a gamble.

Buy Low, Sell High

Have you heard the saying that Obama is the best gun salesman?

A report released by the ATF shows that gun production has dramatically increased. In George W. Bush’s 8-year term as president 28 million guns were produced. In Obama’s first term as president 26 million guns were produced.

My family owns two small department stores known for their sporting goods department. Customers come from all over the state to buy guns and ammo.

When Obama was first elected as president there was a frenzy. With expected gun laws to dramatically tighten nationwide, the sales of firearms and ammunition soared. Sales more than doubled across the country. And for our little stores they more than quadrupled.

Then last year when there was talk of banning assault rifles like AR-15s and AK-47s, prices quadrupled and whatever inventory was on the shelf soon flew off — overnight.

If you were in the place to sell at the time you would’ve made a hefty profit. Demand for firearms and ammunition is still at such a high rate that it’s hard for stores to keep a good inventory in stock and manufacturers have had a hard time keeping up with production.

While most well-maintained, high-quality guns don’t depreciate, buying guns as an investment while they are at top dollar isn’t a good idea. Just like you would do when investing in the stock market,buy low and sell high.

Investing in Collectible Guns

Right now, investing in assault rifles would be a gamble. And in my opinion you’d probably lose money if you were investing for the short term. While prices have deflated since last year, they’re still high compared to just three years ago.

But if you’re looking to invest in guns for the long term, then collectible is the way to go. Different collectors look for different things in firearms. But history is the most desired trait.

A gun from a popular maker that is in pristine condition (preferably never been shot) and has a history will command the most money. But most important is that you feel good about the investment.

If you know absolutely nothing about firearms, learn first. You need to know what you like.

Collectible guns can also cost a pretty penny. So, before you make any purchases, it’s important to be as educated as possible.

Invest in Gun Stocks

For those who like the idea of investing in guns but don’t want to hold physical firearms there are two publicly traded firearm companies: Smith & Wesson Holding Corp (SWHC) and Sturm, Ruger & Co. (RGR).

However, it’s important to consider that as legislation comes into play, these stocks could be volatile.

Another option is to invest in ammunition companies. From 2008 to 2012 it was nearly impossible for stores to get in any type of popular ammo. In fact, our stores can still barely get 22 ammunition. Ammo is often backordered and the day it comes into the store, it’s gone.

This has been going on for almost six years now and it doesn’t look like the demand for ammo will be dying down anytime soon. This means that investing in a company that manufactures ammunition could also be a solid strategy.

Important: You Have to Feel Comfortable

When it comes to investing in guns, I’m a bit biased. I feel like guns can be a great investment but they’re also something I’ve grown up around.

I’m well-versed in gun safety and target shooting is actually one of my favorite hobbies. But I want to reiterate the fact that it is extremely important that you feel comfortable with the investment you’re making.

If you know nothing about firearms, then taking a gun safety course is essential before purchasing a firearm — even if you don’t have any intent of ever using the gun. If you want to get into firearm investing without owning a physical product, then buying gun stocks is the way to go.

Know what you’re investing in and feel comfortable about it.

Would you invest in guns?

Is It Actually True That Guns Are a Good Investment? (2)

Alexa Mason

Alexa Mason is a freelance writer and wanna be internet entrepreneur. She is also a newly single mom to two beautiful little girls. She chronicles her journey as a single mom trying to make it big atwww.singlemomsincome.com.

Editor: Clint Proctor Reviewed by: Chris Muller

Is It Actually True That Guns Are a Good Investment? (2024)

FAQs

Is It Actually True That Guns Are a Good Investment? ›

While most well-maintained, high-quality guns don't depreciate, buying guns as an investment while they are at top dollar isn't a good idea. Just like you would do when investing in the stock market, buy low and sell high.

Will guns increase in value? ›

Vintage guns hold their value and appreciate in nearly every instance, and in 2023's uncertain economy they provide collectors with a hard asset with investment potential as well. Vintage handgun prices in 2023 look to continue their uptick, especially rare examples of popular genres like the Luger.

How well do guns hold their value? ›

A good quality, well maintained, gun will hold its value and its resale value will at least keep up with inflation. A gun that is a true classic or one of those “they don't make them like that anymore” firearms can be worth considerably more than its modern equivalent.

What is a positive of owning a gun? ›

Owning a firearm provides protection for yourself, your family, and your property. Protecting yourself and your loved ones is a basic human right, and possessing a firearm provides a big advantage or, at the very least, helps even the playing field against those who intend to do you harm.

Why should I buy guns? ›

Personal & Home Defense

You have a right to defend yourself, and a gun is your best option to do that. To buy a gun is to equip yourself with the most effective tool of defense no matter where you are. Also, when defending yourself or your loved ones, you want that fight to be so lopsided in your favor.

What percentage of gun owners carry guns? ›

While recent surveys show that nearly a third of American adults say they personally own a gun, the percentage who choose to regularly carry a firearm in public is smaller, with about a third of handgun owners, or an estimated 16 million adults, saying they carried a loaded handgun in public at least once a month, and ...

Are guns considered an asset? ›

Guns are definitely assets. They can be appraised, valued, and then auctioned. However, every state has laws about property that is "exempt," which means it cannot be taken by judgment or in bankruptcy.

How many guns average person owns? ›

The average American owns between one and five firearms. Men are more likely than women to own more than one, and those with only one firearm typically have a handgun or pistol.

How much is the average pistol worth? ›

An actually decent pistol can range in price from around $400 to $1,500 or more, depending on factors such as brand, model, features, and quality. High-quality pistols from reputable manufacturers tend to be more expensive, but they often come with better reliability, accuracy, and durability.

Is buying ammo a good investment? ›

To sum up, ammunition can be a great financial hedge against hard times. It will always have value, and, if stored properly, will never spoil or go bad. Plus, it's useful — it doesn't just sit there like a lump of gold. You can shoot ammunition for fun, defense or hunting.

What are the cons of having a gun? ›

The main risks of having a gun in the home stem from the fact that someone inappropriate can be shot or intimidated with the gun. There can be ( a) accidents, ( b) suicides, ( c) assaults and homicides, and ( d) intimidation.

Why should people carry guns? ›

Proponents of concealed carry say concealed carry deters crime, keeps individuals and the public safer, is protected by the Second Amendment, and protect women and minorities who can't always rely on the police for protection.

Are guns a good asset? ›

While most well-maintained, high-quality guns don't depreciate, buying guns as an investment while they are at top dollar isn't a good idea. Just like you would do when investing in the stock market, buy low and sell high.

Is it worth having a gun? ›

In short, gun ownership does not increase safety, and the prevalence of guns directly correlates with a significantly greater risk of gun-related homicides and suicides. While the facts surrounding the safety of having a gun in the home are clear, the choice to own a gun is more complicated for many homeowners.

How many guns per person in America? ›

In the United States, there are 120.5 firearms in civilian possession per every 100 residents, according to data from Small Arms Survey. Here are the numbers for the nations listed above, in the same order: Canada: 34.7 firearms per every 100 residents.

Is the right to bear arms? ›

Second Amendment Right to Bear Arms

A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

Are guns getting more expensive? ›

According to a recent Thomas Report, steel is in its third consecutive and unprecedented cost spike. This, coupled with manufacturers from all markets trying to re-establish their supply chains post-Covid, guns are more expensive to build, harder to find, and take forever to purchase.

Are old guns worth any money? ›

For an older gun to be worth more than a new similar model, it must be desirable, rare and in great condition. If it's an old Colt revolver, a Winchester lever action, a high-quality double-barrel shotgun or something of the like, it could be very valuable.

What is the trend in the gun market? ›

Rising Demand for Civilian Applications: The increase in demand for guns and accessories for hunting, sports shooting, and self-defense is fueling market growth. Technological Innovations: Advancements in firearms technology, including lightweight materials and improved durability, are driving market expansion.

Do AR-15 lose value? ›

Technological advancements also play a role. As newer, more advanced models are released, older versions may become sought-after classics or lose value due to obsolescence. The AR-15, known for its modularity and ease of customization, can maintain or increase its value if upgraded with high-quality components.

Top Articles
Latest Posts
Article information

Author: Cheryll Lueilwitz

Last Updated:

Views: 6169

Rating: 4.3 / 5 (74 voted)

Reviews: 81% of readers found this page helpful

Author information

Name: Cheryll Lueilwitz

Birthday: 1997-12-23

Address: 4653 O'Kon Hill, Lake Juanstad, AR 65469

Phone: +494124489301

Job: Marketing Representative

Hobby: Reading, Ice skating, Foraging, BASE jumping, Hiking, Skateboarding, Kayaking

Introduction: My name is Cheryll Lueilwitz, I am a sparkling, clean, super, lucky, joyous, outstanding, lucky person who loves writing and wants to share my knowledge and understanding with you.