Machine Guns as a legit investment?

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I wonder the practical thought or application of considering the purchase of a machine gun as a legit investment.

Like all investments there would seem to be some serious risk based on laws that could be changed and a very small market interested in buying and bale to afford the purchase.

The upside seems to be the consistent gains over time, limited and ever shrinking supply.

What are your thoughts?
 
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The chances of the 1986 freeze being undone is the only big risk, but I doubt you'll see the same percentage rise you have historically seen. It's easier to go from 800ish to 16,000ish than from 16,000 to 320,000. It's sort of like the rare penny stock that hits it big - by the time everyone notices obscene profits the easy money has been scooped off the table. Plus, unlike other investments, it's not going to be stolen by the government if you fail to report a hotel fire or accept a deposit on behalf of an insolvent banking institution.

Seriously consider a trust with several names so you can do a quick and easy (eFA-10 only) transfer if you need to get it out of your name in a hurry.
 

67ray

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There are more risks other than lifting the 1986 ban, but they are just as unlikely to happen. Many individuals out there have a lot more invested in machine guns - they have a lot on the line.

But more importantly machine guns are one of few investments that are FUN. You can't say that about stocks or bonds.

If you are wondering about ROI then have a look at machinegunprices.com numbers are pretty impressive. Also notice they don't move with the stock indexes so there is a strong case for diversification too.
 
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Forgotten Weapons (Ian McCollum) has some videos discussing investing in machine guns.

The TL : DR is that, yes, some guns are going to appreciate, but a lot also depreciated. For example, MGs in big, old, full power rifle cartridges like Maxims, BARs, etc. went down in value once surplus ammo from WW2 and the Cold War dried up. Try actually shooting WW2 Japanese machine guns - the ammo bill alone is going to kill interest for most people.

Conversely, things like MACs have went up in value with the availability of Lage uppers. FNCs also get a lot of their value from the fact that there's probably more FNC auto sears on the market than FNCs. So, there are opportunities to speculate.

The practical problem is future parts availability and maintenance.



 
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The chances of the 1986 freeze being undone is the only big risk, but I doubt you'll see the same percentage rise you have historically seen. It's easier to go from 800ish to 16,000ish than from 16,000 to 320,000. It's sort of like the rare penny stock that hits it big - by the time everyone notices obscene profits the easy money has been scooped off the table. Plus, unlike other investments, it's not going to be stolen by the government if you fail to report a hotel fire or accept a deposit on behalf of an insolvent banking institution.

Seriously consider a trust with several names so you can do a quick and easy (eFA-10 only) transfer if you need to get it out of your name in a hurry.
Doesnt have to be thew same percentage rise as after the 86 ban, but would be curious to see if a 3-6 year return could be on something like a Mac11. I have a line on one for about $10k with a bunch of extras... Thats a MG that would have been $4500 - $6000 when I first started looking years ago. What are the chances thats $14k - $16k in 3-6 years? Seems plausible and seems less risky to see that type of return for that amount of investment over that duration
 

whatluck

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Any MG that's been a centerpiece for a popular movie will stay strong.

I think a better play right now is to hedge against inflation by buying cotton tee shirts, socks, soap, jackets, field gear, and ammo.
 

one-eyed Jack

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The only real "investment" now would be in post samples. There is 50,000 to one chance that ATF would one day make them transferrable or at least pre sample. Dealer now is approx1985 X10 and retail 1985X10 with many exceptions of course. I reduced my inventory to the PS Thompson and Grease Gun which are with my FL/SOT son in NH so as to have them in the family to play with. Jack.
 
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The only real "investment" now would be in post samples. There is 50,000 to one chance that ATF would one day make them transferrable or at least pre sample. Dealer now is approx1985 X10 and retail 1985X10 with many exceptions of course. I reduced my inventory to the PS Thompson and Grease Gun which are with my FL/SOT son in NH so as to have them in the family to play with. Jack.
I missed on the Mac that you sold to Doug at Old Glory a while back... Someone got it before I did. Was the first MG I ever shot at the Monadnock shoot and I really wanted it.
 

one-eyed Jack

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I missed on the Mac that you sold to Doug at Old Glory a while back... Someone got it before I did. Was the first MG I ever shot at the Monadnock shoot and I really wanted it.

I missed on the Mac that you sold to Doug at Old Glory a while back... Someone got it before I did. Was the first MG I ever shot at the Monadnock shoot and I really wanted it.
If interested, you may want to see if he still has the Reising 50s that I transferred to him. He's a great guy to do biz with. Jack.
 

steven grammont

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I wonder the practical thought or application of considering the purchase of a machine gun as a legit investment.

Like all investments there would seem to be some serious risk based on laws that could be changed and a very small market interested in buying and bale to afford the purchase.

The upside seems to be the consistent gains over time, limited and ever shrinking supply.

What are your thoughts?
As long as you label it as "ultra rare preban" in the classified section , you should be able to double , if not triple your investment.
 

Shevchenko

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The only real "investment" now would be in post samples. There is 50,000 to one chance that ATF would one day make them transferrable or at least pre sample. Dealer now is approx1985 X10 and retail 1985X10 with many exceptions of course. I reduced my inventory to the PS Thompson and Grease Gun which are with my FL/SOT son in NH so as to have them in the family to play with. Jack.
lucky son, my dad just gives me stress and all his "tech" problems
 
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one-eyed Jack

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lucky son, my dad just give's me stress and all his "tech" problems
Well, my three sons and grandkids all like to do mag dumps. The two post samples set me back only $700 for the pair 35 years ago. Let's just have fun while we still can. Jack.
 
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The only real "investment" now would be in post samples. There is 50,000 to one chance that ATF would one day make them transferrable or at least pre sample. Dealer now is approx1985 X10 and retail 1985X10 with many exceptions of course. I reduced my inventory to the PS Thompson and Grease Gun which are with my FL/SOT son in NH so as to have them in the family to play with. Jack.
Ok, let's look at what the IRR is:

10x over 36 years = exp(ln(10)/36) = 1.066 = 6.6% per year

15x over 36 years = exp(ln(15)/36) = 1.078 = 7.8% per year

20x over 36 years = exp(ln(20)/36) = 1.087 = 8.7% per year

Average DJIA 1985 = $1327.99; current=34565.95, multiplier = 26 => exp(ln(26.028)/36) = 1.094 = 9.4% per year
 

67ray

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For many people this is not about skinflinting or competing with equities markets. It's about having fun & enjoying life while you still can.
There are many people who actually do things for the love of it.
Not just to eek out the most $$$ they can before they die with a big bank account.
 
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For many people this is not about skinflinting or competing with equities markets. It's about having fun & enjoying life while you still can.
There are many people who actually do things for the love of it.
Not just to eek out the most $$$ they can before they die with a big bank account.
Yup, I was only talking about ROI, not FOI :)
 

Thirwell1216

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Buy them, shoot them, enjoy them, and they will increase in value. Law of supply and demand applies to many MGs. Make sure you know what you are buying. However, if you treat them like museum pieces, the return rate is a bit slow.
 

mac1911

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If I bought the Items I was looking at back pre 2010 I would have a decent return now
IF I sold them now. That would be my problem. If I purchased them and sold them
they are GONE
O well I retain my mass permission slip in the hopes I can stumble across something and at least be able to play with others toys.
 

one-eyed Jack

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Buy them, shoot them, enjoy them, and they will increase in value. Law of supply and demand applies to many MGs. Make sure you know what you are buying. However, if you treat them like museum pieces, the return rate is a bit slow.
Exactly. The thrill for me now is watching Little Jack and his sister clearing brush with them behind their house. Jack.
 
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