Older Smith and Wesson revolvers from the 60s thru the 80s are selling at a premium these days and I suspect some folks fret over selling some of them off...but worry not, best I can tell a S&W Model 19 was selling new for around $250 back in the 70s.

That same Model 19 would have sell for $1600 today to even return 4% CAGR...while the S&P 500 has returned about 9% CAGR.

Oh [bleep]!

And the market has gone soft on those older S&W's and firearms in general. I like to peruse a local classified site and am seeing some very nice Smiths from that era sitting unsold for weeks at prices that would have had them snapped up immediately a year ago.

But the S&P will not offer the comfort that the Model 19 will when things go bump in the night! That has no measure! 😉 memtb

And then there's the joy of owning it, which is also priceless.

So is knowing that you won't outspend your money in your lifetime that is both comforting and priceless.

With a very few notable exceptions, guns are not a “good investment.” On the other hand, compared to other hobby/recreational tools and equipment, if you buy the right ones and take good care of them they will be retain a significant portion of their value and/or be of particular value and utility to your heirs.

I'm driving around Atlanta with my sil, seems like a good investment regardless of $$$$$....

I'm driving around Atlanta with my sil, seems like a good investment regardless of $$$$$....

According to my copy of the 1972 Gun Digest, the retail price of a S&W Model 19 was $135.00, so the rate of return is better than you thought.

"According to my copy of the 1972 Gun Digest, the retail price of a S&W Model 19 was $135.00, so the rate of return is better than you thought."

A few comments:

1. I never found prices listed in Gun Digest to be anything close what was occuring in the marketplace back in the 1970s, 1980s, or 1990s

2. I would love to find a reciept for a new Model 19 dated in 1972. I would be quite surprised if it said $135.

3. Even if you take the $135 sales prices as "fact", that same Model 19 would have to sell for $1200 today to generate even a 4.375 CAGR.

Agreed, owning one of the as-close-to-perfect-as-they-come .357s is very satisfying.

If you measure this by $$$$ you might have the wrong perspective - of course that’s what many serve.

PennDog

Uh funny... - that's what this post is about prices, dollars, and return on investment - kind of like a post that is about food for a backpacking trip and evaluating nutritional value per ounce and someone saying - "well but I just don't get the same pleasure as when I have linen table cloths and fine china"

Classic firearms in nice shape will go a long way towards that objective as well, even if not quite as well as some handpicked, after the fact, financial instruments. But then the shortfall in comparison to those is made up for by the joy they provide while in one's possession.

……really?? Then you’re right you are annoying.

PennDog

Hawkeye my sense is you are not very familar with the concept of investing in the S&P 500 as an Index because investing in it whether thru an Index Fund or other similar technique is anything but "hand picked" and the strategy is all about avoiding "after the fact" regrets but perhaps I misunderstood your post.

I think my meaning was pretty clear.

PS At one time, I held a Series 7.

I doubt if very many people here buy firearms thinking that they’ll sell them in forty years and get rich.

Firearms are, however, one of the few items that if taken care of, pretty much hold their value in comparison to inflation as used items. At least that’s been the case for the past fortyish years.

So think of it as enjoying their use for a considerable time, rent free.

Yep....

Very few hobbies that you can break even on...

And yes, K frame Smiths are a great hobby...

A few S&W's, a few stocks, maybe a little gold. It's all good.

Years ago I got in the stock market. A friend of mine that's always been afraid of the market bought 200 acres of prime hunting land about an hours ride from the house. One night we were sitting around the campfire with some good Whiskey and the conversation turned to investments. His land was for sale and I knew the asking price and his potential return of investment. It was a good time to be in the market and I had done a lot better percentage wise on my investments. After telling him this he asked one simple question , "can you hunt your stocks?"

Not all returns are monetary and you can't always put a price on them.

One of the things about buying guns to hold their value or even to make some on is you need to buy quality. I doubt anybody is going to be getting in a bidding war over a Savage Axis or Taurus Judge.

Doesn’t hurt if you can pick up some quirky oddballs that end up not selling well. A buddy bought two S&W 296 hammerless 5 shot Lframe 44 specials years ago because J&G sales was blowing them out for $249. They’re worth about 8X what he gave for them. Same for the 32 mags that were not very popular. All the short runs S&W did for distributors back in the 80’s and 90’s command a premium with collectors, I wouldn’t be surprised if today’s special runs follow that trend.

But yes I agree, your run of the mill M15s and M19s and the like are probably actually cheaper today than when new as far as buying power goes. To make a comparison to the OP’s revolver selling for $250 in the 70’s, my dad bought a new 1979 F150 for $5450 pretty well optioned. $250 bought a lot more then.

To be precise, yes, you CAN hunt those stocks. Cashed out, they will take you to Africa, Alaska or anywhere else. With hard investments, such as firearms, most of the return is made the day you buy it. Buy it right and you’ll do fine. If not, then not. I honestly don’t care if I make money on a gun. I buy what I like and enjoy using them. I’ll invest elsewhere for retirement. There are lots of good ways to do that.

Edited: TheKid makes a good point. Good guns are usually the best investment. I’m not rich enough to buy junky guns.

Put simply, if you cash out the investments and spend the money on hunting trips, they aren't investments anymore. It's just money you put in someone's pocket for your entertainment.

Try to keep up here.

Thanks for the clarification, Mr Buffett. It is possible to spend some of the gains without hamstringing the portfolio. But I’ll try to keep up.

And still call the money you spent an investment? No. Absolutely not. You still don't get it and your kurt response only reveals your ignorance. I'm sure Mr Buffet would agree with me on both counts.

I think the word is “curt”, not “kurt”. 🤭

But best wishes anyway. Glad you’ve done well.

I'll try to explain it a little better. Mike the OP made a valid point about the rate of return on "collectible" S&W revolvers. He is 100% correct if we are only talking about monetary value of the investment. That said, there are other considerations like being able to shoot it occasionally and pride of ownership. While it might not be the best investment, it offers other rewards you simply can't get with other investments

My stock market investment was great and percentage wise I did a lot better than my friends land investment, but we had a lot of good times on his land. He had a pride of ownership with that land that I never had with the stocks. Not to mention the life long memories of the hunts

Point being, not all investments are about monetary gains and I needed reminding of that.

The curt/kurt thing, I knew but sometimes Android decides for me.

Here is one of my recent "investments." Will I make a killing? Probably not, but the only way I'll get hurt is if I shoot myself with it. Would I invest all my money in S&W revolvers? No. Is a little OK? Yeah, I think so.

Your buddy is smart, and doing what I've thought about but haven't.

Shopping the blowout sites for discontinued, discounted, retards.
When Ruger made the Super Redhawk in 10mm, my first thought were
"Who wants an artillery piece shooting a mid level round."
The next was, "Not many folks, until 10 years from now. Then they will bring
ungodly money from the collectors saying "They only made xxx of them."

Of course it slipped my mind, a more diligent fellow would be watching J&G and
CDNN for such opportunities.

Precisely.

Bingo!

Spot on.

Very nice. You're not likely to lose a dime on that, and will have pride in ownership, and years of enjoyment, besides. You may even make a few bucks on it, one day (over inflation). Likely, in fact.

mike Dettore: Don't forget that your profit on the "cagr/s&p" WILL be reported to the I.R.S. and you will pay 20% to 35% income tax on any profits (depending on you's tax bracket) whilst ALL the profits I have made over the last half century plus, trading and investing in guns, was/is MINE to keep.
As others have pointed out your "figgers" are a bit skewed - but if investing in "cagr/s&p" floats your boat then thats fine with me.
I take pride in the ownership and the profits my firearms investments and my collector guns have brought me - I never recall taking pride in any of the stocks or mutual funds I have owned in the past! Let alone the friendships and camaraderie's I have made and enjoyed amongst fellow collectors and gun enthusiasts over the last half century plus!
I have NEVER felt "friendship" with any stock brokers or I.R.S. agents!
So theres that.
Hold into the wind
VarmintGuy

Thanks Hawkeye.

The next one is going to be the X frame 350 Legend. I’m not buying any because I think they’re stupid but they’re going to be collectors items.

Doesn’t the guy who buys and sells collectibles, like firearms, also owe taxes on his profit? Whether he pays it or not is certainly another matter. If he decides to cheat on his taxes, he should at least be consistent and not complain about others who defraud the government in some way. Also, there’s no reason for this to be an either/or thing. Lots of folks have investment portfolios AND gun collections, and often some real estate too.

I'll toss an example on pricing. Eagle grip swap shown. Your old stomping grounds.

This receipt is for a K38 Model 14 I own. Obviously, it's not a model 19 but may yield some insight into the pricing hierarchy of Smith & Wesson revolvers on August 6, 1971.