The topic of investing in firearms, especially in the year 2020, has sparked much discussion on online forums like Reddit. While some tout guns as profitable investments, others argue they depreciate in value and have limited upside. Key considerations include supply/demand dynamics, market speculation, and firearm type. Overall, most comments suggest guns are mediocre investments compared to stocks or real estate. However, enthusiasts contend collectible, rare guns can gain value over decades and provide an alternative asset.
Limited financial upside of guns due to depreciation
Many Reddit users argue most firearms rapidly depreciate and have limited financial upside as investments. Like cars, their value decreases significantly once purchased and used. Some compare guns to other luxury consumer goods that decline in value over time. They caution against viewing guns primarily as money-making assets. Exceptions exist for collectible antique or rare firearms in sought-after categories, but typical guns won’t appreciate substiantially.
Guns as inflation/disaster hedges, not pure profits
Other Reddit discussions frame firearms as disaster hedges and protection against social instability, rather than pure profit-drivers. Some see guns as hard assets that could retain value if inflation rises or natural disasters occur. Along those lines, guns provide security if law enforcement is compromised. But most don’t expect their firearm collection to deliver stock market-like returns. At best, guns beat cash savings accounts but lag far behind equities, real estate, or bonds.
Supply/demand imbalance risks creating bubble
Many Reddit users warn that recent gun-buying surges could create a bubble if supply outpaces demand. Aggressive marketing from manufacturers and panic buying has flooded some segments with inventory. A market correction could devalue existing guns among individual owners and smaller dealers. To avoid a crash, buyers caution against overpaying for firearms based on fear or hype alone.
In summary, most Reddit discussions suggest guns have limited profit potential for average investors compared to conventional assets. However, rare collectible firearms can gain value over decades and represent alternative investments. Guns are better viewed as inflation hedges and disaster protection, not pure money-makers.