ollecting firearms can be enjoyable and profitable. Many collectors find firearms an attractive investment because it is lucrative and unique. Here are some things to keep in mind when considering investing in firearms.
Guns are one of the most liquid assets you can own. In the collectible gun market, you can expect to receive immediate payment when the time comes to sell your guns.
Many collectible guns are no longer made, and the supply continues to diminish every year. A growth in demand makes price increases inevitable. The limited supply also reduces the risks of investment.
• Low Minimum Investment
Other collectible pieces of history and works of art such as paintings can cost a million dollars or more, while collectible guns seldom costs more than $100,000.
Maintaining your gun collection does not require a huge amount of money. According to John Gangel, president and owner of Little John’s Auction Service, gun maintenance can be as easy as oiling and wrapping it in a cotton T-Shirt, towel, or sock. He also shared, “I have guns that I put away 25 years ago and they’re still perfectly wrapped in a cotton towel. You just take them, unwrap them, and oil them once or twice a year and they’re perfect.”
Gun collecting doesn’t require you to work. You can choose the amount of time you spend on maintenance.
• No Tax Benefits
Traditional investment vehicles like a 401(k) or an IRA can offer tax deductions. As with other collectibles, firearms offer no tax advantages.
• Fake Antique/Rare Firearms
A fake antique or rare firearm is not uncommon in the firearm collecting industry. This is why it is very important for beginning gun collectors to arm themselves with knowledge first.
According to an analysis done by the business research firm Hoovers, the estimated revenue generated by the gun and ammunition industry in the United States is about $6 billion per year. Gun buyers in the United States have seen an average appreciation in their investments of over 30% in the past 10 years. The potential return on investment can be anywhere from 10% to 25% annually depending on the type of gun being collected.
When starting your collection, the first thing to do is determine the type(s) of guns you want to collect. Collecting antique and rare guns will ensure greater profits. Guns from the Civil War, World War I and II, and other guns that have been part of history have greatly increased in value and continue to do so as time passes.
When buying guns, beginners should consider getting some help from an expert. It is worth paying an appraisal service to help you identify if a certain gun is genuine or not, to determine the real value of the gun in the market, and of course, if the gun is worth its price. You can find good appraisers and appraisal services on the internet; websites like AntiqueGuns.biz and CenturionAuctions.com are examples of some good places to go for an appraisal.