Is Buying Guns a Good Investment?

That wasn’t really true. I wanted to purchase the rifle because it’s an insanely awesome piece of military history. I would’ve bought it whether it gained value, lost value, or turned into a pumpkin at midnight.

Fortunately for me, M1 Garands have become more valuable since I picked up mine for $800 and a song. These days, that rifle could easily go for north of $2,500.

All of this got me thinking: what other kinds of firearms could I get away with purchasing as “investments”? If I wanted to start buying guns with an eye toward making money down the road, what kinds of guns should I look for? Could my M1 Garand be the start of a firearm portfolio, or do I need to be Mr. Moneybags to start seriously collecting?

To help me answer these questions, I called up the good folks over at Rock Island Auction Company (RIA). Rock Island has been hosting gun auctions for the past 30 years, and you won’t find a group of bigger gun nerds anywhere in the country (and I mean that as a compliment). They told me that while most gun collectors don’t see massive returns, firearms can be a solid performer in any retirement portfolio.

“If you’re just interested in investing, throw it in the S&P. But if you’re interested in firearms, it’s a fun way to invest,” said RIA’s Matthew Peake.

Rarity, Condition, and Provenance

Investing in firearms can be both enjoyable and lucrative, but it’s hard to know where to begin. The good news is that there are collectable guns within almost any category, which is why Peake recommends starting with one simple question: what interests you?

“Every big collector I’ve talked to about this has said, have fun with it,” Peake said. “It’s not necessarily about acquiring. The more you get excitement and joy out of it, the more you’re invested in it. Investing in random stocks is, to me, really boring. But investing in history, and history that I can actually do something with, is way more fun.”

The first step to investing in firearms is deciding what kinds of guns you already like and want to learn more about. Enjoy shooting 1911’s? There are tons of options, both historic and modern. A big fan of military surplus rifles? Even bargain-bin Mosin-Nagant rifles have increased in value in recent years. Wish you’d lived as a 19th-century cowboy? Colt and Winchester firearms are among the most valuable, but there are plenty of examples that even the average collector can attain.

For me, I’d like to begin collecting old rimfire rifles. I’ve made no bones about my love of the .22 LR, and many of these firearms can be had for extremely little money.

“The process, whether you’re collecting million-dollar guns or five-hundred-dollar guns, is the same,” Peake explained. “You have to be interested in it. Then, you talk about rarity, condition, and provenance.”

Let’s break down those three characteristics. “Rarity” is self-explanatory: the more rare a firearm is, the more valuable it’s likely to be. For example, the Singer Manufacturing Company produced an order of 500 M1911A1 pistols for the U.S. Army in 1940. RIA sold one of those Singers in 2010 for a whopping $166,000. Then, seven years later, it sold for $414,000. It commanded such a high price, in part, because it was one of only 500 such pistols ever made. Rare firearms are a bit like real estate–they ain’t making more of them, and so what exists tends to increase in value.

This Singer 1911 recently sold at auction for $94,000. (Photo: Rock Island Auction Company)

“Condition” is also a concept you’re probably familiar with. Another reason that Singer M1911A1 sold for nearly $500,000 is because it was in excellent condition. A rust-free gun with no cracks in the grip and much of its original bluing is more desirable–and thus more valuable–than the exact same gun that’s been run through the spin cycle. If you find two of the same firearm for similar prices, pick the one that’s in better condition.

“Provenance” is a catch-all category that you can think of as the firearm’s story. Where did it come from? Did any famous people own it? Is it associated with any interesting aspect of popular culture or a well-known military conflict?

This Smith & Wesson revolver, for instance, would be valuable in its own right, but it sold for $235,000 because it belonged to Wild Bill Hickok. Same story with this big bore Hawken rifle. It’s rare and interesting on its own, but its connection to Teddy Roosevelt increased its value well beyond its estimated price.

But a firearm can have a valuable provenance even if it isn’t connected to any historical figures.

“Popular culture plays a big part in collecting,” Peake said.

Smith & Wesson Model 29’s, for example, are more valuable than other .44 Magnum revolvers because Clint Eastwood carried one in his iconic “Dirty Harry” movies. Winchester 1873’s are desirable in part due to Jimmy Stewart’s famous film, “Winchester ‘73,” and an 1873 sold recently for a whopping $528,750.

This “One in One Thousand” Winchester 1873 recently sold at auction for $528,750. (Photo: Rock Island Auction Company)

Even prop guns can bring in big money. In 2022, Rock Island offered the only surviving “DL-44 Heavy Blaster Pistol” used by Harrison Ford in “Star Wars: Episode IV – A New Hope.” It sold for $1.057 million and earned a spot in the Guinness Book of World Records for most expensive prop gun sold at auction. One of John Wayne’s Colt six-shooters sold for $517,500 a year later while revolvers owned by Elvis Presley achieved prices of nearly $200,000 in 2017.

Individual people might also see value where others don’t–even in factory production or otherwise common firearms. A Glock fan might be willing to shell out for a Gen 1 example of the famous Austrian pistol. Someone who shot their first deer with a Weatherby might pay more for that same rifle, and that old Colt AR-15 might remind a Vietnam vet of harrowing, life-changing experiences. Even if you can’t afford a gun with world-famous provenance, you can still target iconic firearms that someone might see value in.

“What a gun is worth is a relative thing,” Peake explained. “It’s really what somebody is willing to pay for it on that day. We’ll have the exact same gun sell for three times more depending on the day.”

Doing Your Homework

Of course, none of this is obvious by looking at a firearm on the used gun rack. If you want to know whether any specific firearm is rare, in good condition, has an interesting provenance, and, most importantly, is a good price, you have to do your homework.

“There’s not a formula for becoming a good investor. But the mindset is always the same. I want the best stuff that I can afford, and I want to enjoy it,” Peake said. “It’s like any kind of investing. You’re not going to invest in a stock without doing your homework.”

Once you’ve selected a category of firearm to pursue, Peake recommends reading a reference book on that category. A book on the history of AR-15’s or Glock handguns or lever-action rifles will outline the most famous makes and models of that kind of firearm. Then, it’s a matter of familiarizing yourself with what those models are earning on the open market.

That’s easier said than done, and previous generations had to rely on publications like the Blue Book of Gun Values to estimate what a firearm is worth. These days, the Internet can provide not just an estimate of what a firearm is worth but what it actually sells for. Rock Island Auction Company posts the realized value of every firearm sold in one of their auctions, and auction websites like GunBroker and GunsAmerica offer real-time values on pretty much every kind of gun in existence.

This pre-WWII Winchester Model 62 recently sold at auction for $2,938. (Photo: Rock Island Auction Company)

For example, if in the course of my reading I discover that Winchester Model Model 62’s are some of the most famous double-deuce rifles ever made, I can search for those models in Rock Island’s previous auctions. That gives me information on two highly collectable Model 62’s with an estimated value of around $10,000. Each listing provides a history of the firearm, which is also useful information.

If I don’t have that kind of cheddar (which I don’t), I can also search for Model 62’s on GunBroker. That gives me a much wider selection of rifles, and I can read through those descriptions to get a sense of how much this or that Model 62 is worth.

There’s no silver bullet for becoming a successful gun collector, but I can repeat this process for any make and model of firearm. Over time, I’ll become an expert on that firearm, and some of that information will overlap into other guns as well.

Get ‘Em While You Can

Believe it or not, guns have only recently become a serious investment vehicle. High-value collectibles like fine art, classic cars, and vintage timepieces have been outperforming traditional investments, and firearms are a part of that trend.

Rock Island tells me that they’ve seen their average annual sales double since 2015, and they broke the $100 million barrier for the second year in a row in 2022. Nine of their top-20 bestselling firearms have passed the podium in the last two years alone. In that same period, more than 120 lots achieved six-figure price tags or higher, with four of those items surpassing the million-dollar mark.

That’s great news for folks who have already started collecting, but competition is clearly getting stiffer. If you’ve always wanted your own Winchester ‘73 or single-action Army revolver or retro AR-15 or Winchester Model 62, now’s the time to pull the trigger. If the market continues its upward trajectory, you can expect a good return whenever you want to cash in. If not, you’ll have an awesome piece of firearm history you can use, enjoy, and pass down to your kids and grandkids.