Stocks, Bonds, or Barrels?

Ask any firearms collector if guns are a good investment and you're bound to receive a response in the affirmative. It's not exactly an unbiased answer, but it is still drawn from sound personal experience. Besides, wasn't the economy's most recent low spot in 2008? Haven't such indicators as the Dow Jones and the S&P 500 recovered nicely since then? What about gold? I keep hearing about its value skyrocketing.

These are reasonable questions from someone debating on whether or not to invest some money into firearms versus other more traditional investment vehicles. Of course, we're not talking about the stocks of firearms companies as investments (although those are doing quite well for themselves currently), but the firearms themselves. Are guns a good investment? Aren't all the "good ones" taken? Not so fast. Here's some information that might make you think otherwise.

1.  Values Are Up

Gun values are up and it's not just some bubble in the market. Yes, modern sporting rifles (a.k.a. "assault rifles") saw a recent price bubble, but over the last five years the vast majority of guns in their usable life have seen and maintained an increase in value. Guns past their "useful life" and in their "collectable life" have been largely gaining value for decades.

2.  Increasing Gun Values Exceed Other Market Increases

The examples we list below are only the beginning. While their values have increased, and done so at a handsome percentage, other genres of collecting make these look like small gains. Through research and careful selection, one stands to outperform even such vaunted standards at the S&P 500 and even gold! Haven't each of those investments vehicles been improving since 2008? Didn't the S&P 500 just experience a new record high this week? The answer to both questions is "yes," but the right guns readily show larger gains in leaps and bounds.

3.  You Can't Shoot Stocks

OK, so this may not be an apples to oranges comparison, but it's a huge plus to investing in guns. Firearms are useful beyond their investment value. You can display them, you can clean them, you can take them to shows, you can take them hunting with your old man, you can teach a youngster about them, and they're a lot easier to trade than stocks. Truth be told, you may not want to fire a high dollar firearm into which you've invested tens of thousands of dollars as you may harm the value, but many of the other activities still apply.

Guns can be enjoyed in ways other investments cannot. You may hear one collector excitedly telling another about a recent purchase that he has chased for years; you'll never hear that from a day trader. You might hear the pride in a collectors voice as he describes his collection; the only time you'll hear financial experts talk that way about a portfolio is if it makes money. In gun collecting, there's so much more than money, like history and the pursuit. Not only is investing in guns worthwhile financially, you can use them as tools as well as for recreation.

4.  Guns Are Tangible

This section isn't meant to be some "the sky is falling" message about our government or the stability of the world economy, etc. However, there is a lot of risk present to investors today: the Eurozone, a government shutdown, debt ceilings, recessions, defaults, and so on. It is in unstable climates that investors seek stability. One only has to look at the popularity of precious metal commodities in the last several years to know that people want finances that aren't just potentially vulnerable electronic numbers in a bank or on the stock market. People want things they can touch, things that they can hold on to and guarantee its security. Collecting firearms provides that opportunity. You can hold them, they're worth an increasing amount of money, and you don't have to worry about losing them if a bank or market collapses. 

Examples

Now, we're not licensed financial planners or sages of what the future may hold, but we can speak from the experience of selling over 22,000 firearms a year and evaluate some past information in an intelligent fashion. We are not licensed financial advisors.  Please due your own due diligence or contact a professional before making any and all financial decision.  We simply have the good fortune to possess loads of data and we're not afraid to use it. All data that we used to derive the information below was obtained in the following way:

• We only used guns that are in 95-100% of their original condition

• We attempted to eliminate as many "special" guns as possible (unique history, one-of-a-kinds, etc) since they can cause larger swings in value.

• All dollar figures shown are a yearly average.

• Values for gold, S&P 500, and Dow Jones are year end figures, except for 2013, which uses October 16 as its final day.

Keep in mind, the amount that you bought/sold a gun for may not match the figures that we provide below. Our figures are averages. They take into account many different finishes, barrel lengths, grips, calibers, serial number ranges, boxes, letters, and so on. These numbers are not published to a pricing guide of any sort, merely to indicate a rising trend in value for several of the most popular firearms that we have sold in the last 5 years.

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 Last 3 years: 72.68%

 Last 6 years: 183.31%

There's more than a dozen Colt Pythons to choose from in our upcoming auction in varying barrel lengths and finishes.

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 Last 3 years: 43.84%

 Last 6 years: 52.78%

This classic piece of American firepower, called "the greatest battle implement ever devised," has also enjoyed quite the rise in value over the last several years. Patton would be proud.

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 Last 3 years: 123.52%

 Last 6 years: 107.93%

Colt 1911s have been a proven high riser for several years.  The numbers on the left don't even reflect the high dollar 1911s such as Singers, high condition first year production models, prototypes, and especially not the world record Singer than we sold in 2010 for $166,750.

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 Last 3 years: 111.89%
 Last 6 years: 79.95%


There are over 15 different high end Model 12 shotguns to choose from in this auction!  They include two engraved and gold inlaid by Master Engraver Angelo Bee, several trap and skeet grade models, and of course some of the ever popular trench shotguns.

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 Last 3 years: -9.39%

 Last 6 years: 52.24%

Despite gold's popularity and media coverage as a high performing investment, it still lacks the gain in value attached to many genres of firearms

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 Last 3 years: 36.89%

 Last 6 years: 17.24%

The S&P is finally starting to look like its old self and is actually breaking some records as of late.  However, even considering that record breaking performance the returns still pale to that of numerous genres of guns.

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Last 3 years: 32.79%
Last 6 years: 17.75%

Even at its historic highs, the mighty Dow Jones fails to match the growth of collectable firearms.

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We could list guns, pictures, and charts for numerous pages, we could also spend an entire month comprising values and breaking them down and making them as specific as possible, but this is not a pricing guide.  What we are doing is drawing trends and averages by looking back at the data from hundreds of sales of the firearms selected.  As with any rise in value there may be a few segments left behind.  Even in a bull market, not every stock gains money or even gains every year.  However, by taking a step back and looking at those trends over a larger period, it becomes easy to see that guns have been a sound investment for quite some time.  This financial benefit comes almost as an aside to most people who buy guns simply to enjoy them, use them, and be a part of that community.  It's yet another added perk to do what you love.

Best of luck in your collecting, investing, and of course, your shooting.

Beautiful Big Bores at RIAC

Over the past few months, Rock Island Auction Company has seen a pleasing inflow of beautiful high end sporting guns that will appear in its December 2013 Premiere Firearms Auction.  There are elegant double rifles, beautiful drilling rifles, and many impressive safari grade rifles.  When admiring these finely crafted firearms one by one an exciting trend began to emerge: these are big guns.  The more guns I looked at, the more large bore weapons I discovered and not only were they made to fire large rounds, but they were absolutely alluring.  I could yammer on all day about them, but I'm guessing you would prefer prefer seeing a lot of pictures instead.  So without further ado here is a selection of the large bore sporting rifles that will appear in RIAC's December 2013 Premiere Auction.


Engraved Gold Inlaid Rodda Double Barrel 8 Bore Under Lever Hammer Paradox Shotgun

This gun is a flat out stunner!  It is a paradigm of color with its handsome chocolate brown Damascus barrels, gold inlays, and positively vibrant case coloring.  Even the textures presented are as various as they are beautiful: the tiny eddies within the steel, the near liquid smooth finish, the contrasting distinct checkering, the minute English scroll engraving, matted rib, bright gold lettering, and the brindled stock.

The gun is much more than just style.  It's an 8 bore paradox shotgun that weighs in at a hefty 15 1/2 pounds and is capable of firing shot or slugs from its rifled barrels..  No doubt the weight was incorporated to eat some of this long gun's massive kick.  One can scarcely imagine how massive the 8 bore slugs would have appeared.  This is one heavyweight beauty most deserving of collectors' attention.

Daniel Fraser & Company Double Barrel Boxlock Big Bore Rifle in 577 Express, with Case and Accessories

The previous firearm is a tough act to follow in terms of beauty, but the Fraser & Co. rifle does quite a respectable job.  It's contrasting colors are visually compelling, from the crude oil black barrel to the coffee and creamer-like swirls of the wood.  The silver color and serpentine lines of the receiver also are juxtaposed nicely with the darker oblong checkered grips to its aft.  The engraving is superb, showing tight floral pattern scrolling that positively saturates the receiver, hinge pin, and break lever.  Other garnishments of note are the pistol grip, cheek piece, horn gripcap, golden oval with inscription, and the leather case which includes 8 primed brass cases, 15 cast conical bullets, a brass single chamber ball mold, a cased set of three screwdrivers, and a two-piece cleaning rod.

This beauty is chambered in .577 Express, which means she packs one hell of a punch.  In fact, in normal situations the .577 Express is considered excessivly powerful with its 7,000 foot pounds of force at the muzzle.  By comparison, a 30-06 with a 180 grain bullet has about 2,900.  The .577 Express is another heavy gun that would have been a pain to lug around the African Savanna, but in the event a wounded, adrenaline-fueled elephant or rhino was ripping through the vegetation to turn you into a red pulp on the dry African earth, a double dose of acute lead poisoning from this fantastic double rifle would be perfect for the task.



Walter Locke & Co. English Back Action 8 Bore Double Barrel Hammer Rifle

This ample firearm takes some of the previous two firearms and blends them together in yet another visually attractive piece capable of knocking down even the toughest game with the thickest hides.  Like our first gun, the Rodda, it also is an 8 bore with casehardened parts.  Similar to the Fraser, it uses contrasting blued components and engraving.  In the picture below you'll notice that the engraving is very light and used mostly as a border, but it can also been seen on the locks and hammers.  The gun features walnut wood, an ebony insert in the forend, silver initial oval, and a round knob pistol grip.

While this is not one of the "giant bores" sometimes used for safari hunting (like 4, 6, or even 2!), the 8 bore was considered the largest gun that a man could comfortably use and haul.  Even well known safari hunter, explorer, rifleman, and conservationist Frederick Selous would eventually give up using his beloved 4 bore muzzleloader stating that it was "upsetting my nerve."  The classic game getter is accompanied by 12 round lead bullets, 3 conical, approximately 20 No. 8 gauge shells, and 5 No. 8 gauge rounds.



Extremely Rare Engraved Ludwig Brovnik Side by Side Double Rifle in Desirable 458 Win Mag

This double rifle, chambered in .458 Winchester Magnum, is the smallest of the calibers in this article, but don't read that as it being a small round.  Unlike most of the rifles in this article, the .458 Win Mag could be used for longer distance shooting.  This rifle, thanks to the terrain in which it was intended to be used, and the up-close-and-personal nature of safari hunting, was regulated for 60 meters.  Some still claim that the cartridge is the most popular for hunting dangerous game.  Its popularity was driven when it offered similar ballistics to the large, English double rifle rounds, but was available in a bolt action rifle, thus making both the rifle and the ammunition cheaper to manufacture and purchase.

As if there were any doubt as to the rifle's purpose, the engraving on the bottom leaves little to the imagination.  Its tight scrolling with vine and foliage lines frame a running cape buffalo, a sight this gun is prepared to handle.  This Austrian-made gun is only one of two in the United States.  It is of "Best Gun" quality and uses many of only the finest quality materials in its manufacture.  This working double features barrels formed from Bohler Special G 55 steel.  This particular steel possesses a high chrome content and is of the very highest strength and quality.  The wood has also experienced the utmost in care and quality and is a hand-oiled finish with a horn gripcap.  Even the checkering on the pistol grip and the entire length of the forend is a unique style that at a distance almost evokes a plaid pattern.  No detail was left overlooked in the creation of this luxury rifle.



Engraved and Gold Highlighted Winchester Custom Shop Model 70 Big 5 Safari Classic Super Express Bolt Action Rifle with Scope

This gun might look a little bit more like your father's prized hunting rifle than some of the others on this list, but it's not for knocking down whitetails.  It is the iconic and recognizable Winchester Model 70, but a closer inspection reveals a special purpose: safari hunting.

Not only is it a Model 70 with shared characteristic of the Super Grade rifles, but its floorplate is engraved and gold inlaid and has a gold and silver highlighted image of a rhinoceros.  Some of you may also be noticing the "BIG 5" and the silhouette of the African continent and thinking, "It's designed to take down the Big 5?  What is that Model 70 chambered in?"  For those that don't know, the Big 5 are the five most difficult animals to hunt on foot in Africa and any one of them is capable of killing you without so much as a second thought. They are:

African elephant: An animal that is smarter and more likely to charge than the others.
Rhinoceros: A lethal tank of a quadruped capable of easily lifting a Cap Buffalo with its deadly, solitary horn (this used to be specifically the black rhinoceros, but their critical endangerment now also allows for white rhinos to be taken).
Lion:  The King of the Jungle.  These unpredictable cats will often rather confront trespassers than flee.  Their stealth, power, and fearsome reputation are all factors when hunting this beast.
Cape Buffalo:  These massive bovines can reach up to two tons in size.  Like the lion, they are unpredictable; a quality that has prevented them from being domesticated.  A large bull's horns can span over a meter from tip to tip.
Leopard:  Currently this beautifully spotted feline is the most difficult to hunt for two reasons: the licenses are laborious to obtain and the cats themselves are nocturnal and extremely wary.  Hunting a leopard using stalking is essentially impossible.

But why is this rifle included among these other large bore firearms?  Simple.  It fires a .470 Capstick cartridge.  The .470 Capstick was created in 1990 and named after safari hunter and writer Peter Hathaway Capstick.  The round itself is essentially a .375 H&H Magnum that has been necked out to hold the larger .475 bullet.  It is a cartridge 3.65" in length and is a near ballistic duplicate of the more well known .470 Nitro Express.  It is more than capable of handling big game.

Honorable Mention

Scarce Cased Charles Lancaster Quad Barreled Hammerless Shotgun with Accessories

While this 16 gauge shotgun is certainly not considered a larger caliber, this gun earns a honorable mention because it packs a punch in a different way - volume.  This is a quad barreled shotgun made by noted London gunsmith Charles Lancaster.  Four shots might not seem like much today with the tube magazines that are taken for granted, but four shots in a time where single and double barrel breech loading long guns were the norm was quite the improvement.  This is a great example of gunsmith ingenuity trying to solve the mystery of a reliable repeating weapon.  The shotgun would not be cocked by opening the breech, but instead by a double action internal hammer - a design he also used in his pistols.  With each pull of the trigger, the striker would line itself accordingly, cock, and then strike each on the four fixed firing pins in sequence.  All this in addition to its stunning cosmetics: light engravings, Damascus barrels, checkered walnut stock, case hardening, stately case, and a gold inlaid "Safe" indicator.  This has all the rarity, innovative design, beauty, and firepower that a collector could want.  An extremely similar (single action) example is currently housed in the NRA's National Firearms Museum, but one will find this gun in a far superior condition.

Here 3 of the 4 barrels are visible.

If you like what you see here, there is plenty more where that came from.  These are just the "big bore beauties!"  Whether you're looking for a rifle or a shotgun, Rock Island Auction Company's December 2013 Premiere Firearms Auction has numerous options from which to choose: high grade American and English-made doubles & shotguns, safari grade rifles, and rare, high condition field guns.  All this in addition to all your collector favorites like Colts, Winchesters, Smith & Wessons, U.S. military, German military, antiques, militaria, bladed weapons, and historically significant pieces.  Stay tuned!  In the coming weeks we'll be showing all sorts of fascinating items that will be crossing the block here at RIAC.