Create a Gun Collection that Pays for Itself

Collecting firearms is a fun and surprisingly inexpensive hobby. What follows are some tips and suggestions for creating a collection that pays for itself.

Firearms, unlike most things, tend to increase in value over time. This is especially true of used and collectible firearms. For this reason, a firearms collection can be considered an investment. A great example is the SKS rifle. SKS rifles that were commonly available for $90 ten years ago are bringing $300 or more today. That's over 300% return on investment in ten years.

The first step in creating a firearm collection is to decide what types of firearms you are interested in collecting. Learn everything you can about your chosen firearm. Identify different variations that increase or decrease value. If you are interested in older firearms (50 years old or older), it might be beneficial to obtain a class 3 federal firearms license. This "collectors license" allows you to buy firearms online and have them shipped directly to you. At the writing of this article, a class 3 costs $30 for a three year license.

Once you have a good idea of what firearms you are interested in, search the internet for sources. Spend some time here looking at as many sources as you can find. You will likely find one source that is far cheaper for your chosen firearm. When you have identified this source, save enough money to buy three of your chosen firearms. Buying three of your chosen firearms allows you to select the best example of the three. Once you have done so, you are free to sell the other two at whatever price your local market will support. Hopefully, you will make a small profit on each rifle, off-setting the cost of the one you kept. (Please note, an 03 ffl does not authorize you to be in business for profit, only to collect. However, it does not say you can't profit from the sale of your firearms. You simply have to be able to justify why the sale helped further your collection.)

Keep in mind, it is important here to really shop for the bargains. Buying low is paramount for this to work. Don't impulse buy. Make sure you are getting the best deal possible. In addition, it is important to be patient when selling. Don't use your rent money, thinking you will recoup it in a couple of weeks.

It is also possible to get some really great deals on online auction sites such as Gunbroker. (See Supporting Link Below) Registration is free and you can even look for ffl dealers by area who will handle transfers for you.

I suggest using the "Going, going, gone" search feature to get in on bargains just before certain auctions close. Please note, when buying firearms online, make sure you carefully read the description and note any additional fees including shipping costs and transfer fees with a local dealer if you do not have an ffl.

Finally, consider looking through local gun and pawn shops as well as classified ads for your chosen arms. Often, shop owners will be very knowledgeable about some items and not so knowledgeable about others. Keep an eye out for bargains. Also, keep in mind that such sellers have typically built some "bargaining room" into their prices. Don't offer what's on the price tag at first. Do some haggling. Point out imperfections. Have an idea of where you can get similar guns online at a cheaper price. Remember, especially at pawn shops, these guys almost always have at least a 100% mark up on their items. Don't be afraid to work them for a lower price. Also, don't be afraid to walk away if you can't get what you consider to be a fair price.

NEVER sell at pawn shops. Contact me or another collector first to get the fairest price.