Author Topic: investing - buying and selling guns on the side  (Read 6841 times)

Offline ag2

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investing - buying and selling guns on the side
« on: September 08, 2016, 03:58:10 PM »
So what's the downside of buying a few guns and stripped lowers now? Then when the election comes and the hysteria increases, turn them for a profit.   If I had a stockpile ready to sell, I could actually see a silver lining if Clinton were elected.

I knew a guy who used to buy stripped lowers for $150 and sell them for $300 back in 2008.  He only bought and sold a few, but he did that without trying very hard.

I don't know the specifics for my state, but I know that I would need to keep volumes low to remain legal. Just keep that in mind if you consider this.

Offline Smurf Hunter

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Re: investing - buying and selling guns on the side
« Reply #1 on: September 08, 2016, 04:04:05 PM »
So what's the downside of buying a few guns and stripped lowers now? Then when the election comes and the hysteria increases, turn them for a profit.   If I had a stockpile ready to sell, I could actually see a silver lining if Clinton were elected.

I knew a guy who used to buy stripped lowers for $150 and sell them for $300 back in 2008.  He only bought and sold a few, but he did that without trying very hard.

I don't know the specifics for my state, but I know that I would need to keep volumes low to remain legal. Just keep that in mind if you consider this.

There's no downside assuming:

1) you have the cash today to accumulate the units
2) you have a market to sell to (legally) post-panic
3) there's no legal consequences, or secret lists that will get you a visit by the Stasi at 3am

Maybe keep it simpler.  Buy 30 round magazines for < $15 each.  If you have $1500 to "invest"  that gets you 100 units.
Let's hypothetically say you can sell the mags for $50 each post-panic.

You net $35 each, or $3500 total.  Total net profit is $2000.  Not bad.  You more than doubled your investment.

Problem is, if you over estimate by even a little, you are then stuck with $1500 in magazine that may be difficult to sell.
Could you find 100 people to pay $20 each?  etc.

Make a few spreadsheets with math like this, and look at the break even analysis, just as you would any business venture.

Offline Smurf Hunter

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Re: investing - buying and selling guns on the side
« Reply #2 on: September 08, 2016, 04:06:45 PM »
Also, for this to work out, scarcity must exist. 

Few people will pay you the same price as Brownell's or Cabela's.  They can overpay at any retail place.
You will really only be able to name your price if the guns, ammo, accessories are no longer available - or you are priced lower than their panic-buy price tags.

Offline BLACK SHIRT

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Re: investing - buying and selling guns on the side
« Reply #3 on: September 08, 2016, 06:42:56 PM »
The market is so flooded right now because everybody overbought 4 years ago. If Clinton is elected there probably won't be a panic like last time. If she starts to talk about banning this or that then there may be a panic. During the last panic I sold Pmags for $45. The night after Sandyhook happened one distributor sold 20,000 of them overnight. Most gun people have dozens of them now. In reality how many magazines do you really need. Even if you don't take care of them they last a long time. A dozen AR mags can be used for multiple AR's, even during a SHTF scenario. The same with lowers.
The thing we should be buying is ammo. Its cheap and plentiful right now so stock up.

Offline jerseyboy

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Re: investing - buying and selling guns on the side
« Reply #4 on: September 08, 2016, 07:51:01 PM »

Maybe keep it simpler.  Buy 30 round magazines for < $15 each.  If you have $1500 to "invest"  that gets you 100 units.
Let's hypothetically say you can sell the mags for $50 each post-panic.

You net $35 each, or $3500 total.  Total net profit is $2000.  Not bad.  You more than doubled your investment.


Actually if you net $35 each, you net $3500. You already subtracted the $15 cost from the gross $50, you don't need to subtract again. Just subtract the $1500 from the $5000.

These are already illegal in New Jersey. Too bad...

Jerseyboy

Offline Smurf Hunter

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Re: investing - buying and selling guns on the side
« Reply #5 on: September 08, 2016, 10:05:33 PM »
Actually if you net $35 each, you net $3500. You already subtracted the $15 cost from the gross $50, you don't need to subtract again. Just subtract the $1500 from the $5000.

These are already illegal in New Jersey. Too bad...

Jerseyboy


Thanks for the correction.

Since I posted this happened in my state
http://www.seattletimes.com/seattle-news/crime/state-ag-proposes-assault-weapons-ban/

Offline FrugalFannie

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Re: investing - buying and selling guns on the side
« Reply #6 on: September 08, 2016, 10:21:59 PM »
Be very careful about selling guns for profit with an FFL. The ATF has been cracking down on this and they recently came out with some "guidance" IIRC that really muddies the waters and can make anyone seem like a dealer without an FFL for selling a few firearms.

Offline Carl

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Re: investing - buying and selling guns on the side
« Reply #7 on: September 09, 2016, 12:44:07 AM »
You will not profit for the risk involved with making private transactions is great.

Offline Alan Georges

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Re: investing - buying and selling guns on the side
« Reply #8 on: September 09, 2016, 05:50:12 AM »
You will not profit for the risk involved with making private transactions is great.
Probably true, if things really get going.

Another down side is that you could be stuck with a load of essentially unsellable items.  While a "turn'em all in" law is unlikely, a ban on any transactions might happen.  Which might be side-steppable if you're selling a gun to your trusted father-in-law for cash, but I wouldn't want to be trying to move a half-dozen rifles or 100 AR magazines to random customers in that climate.

Offline David in MN

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Re: investing - buying and selling guns on the side
« Reply #9 on: September 09, 2016, 07:04:36 AM »
Do you really want to spend years marketing stripped lowers to internet trolls with the best result possible being a sale in a Walmart parking lot? Seems like a hard way to earn a little money while being stuck with inventory.

If, if, if, if you think guns are about to spike in value you can buy shares of manufacturers easily. S&W (SWHC) and Ruger (RGR) are the obvious.

Offline Smurf Hunter

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Re: investing - buying and selling guns on the side
« Reply #10 on: September 09, 2016, 08:41:34 AM »
In a recent podcast Jack covered this.

The short answer is: "get what you need for yourself today". 
Supply is decent and prices are stable. 

Offline Carl

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Re: investing - buying and selling guns on the side
« Reply #11 on: September 09, 2016, 09:04:43 AM »
The gun business is BOOMING! This is why there are so many gun shops around these days... :sarcasm:


Offline Smurf Hunter

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Re: investing - buying and selling guns on the side
« Reply #12 on: September 09, 2016, 09:13:43 AM »
The gun business is BOOMING! This is why there are so many gun shops around these days... :sarcasm:

Slightly off topic - a European coworker watched last night's NFL game.
He was astounded by the number of new car and truck commercials.

He asked me "doesn't every American already own at least one car?" 

Offline Alan Georges

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Re: investing - buying and selling guns on the side
« Reply #13 on: September 09, 2016, 06:24:01 PM »
If, if, if, if you think guns are about to spike in value you can buy shares of manufacturers easily. S&W (SWHC) and Ruger (RGR) are the obvious.
Dead-on, David.  Selling supplies to the miners is almost always a better money-making strategy than doing the mining yourself.  Fewer oddball side-risks of things like prosecution, disgruntled customers, etc. too.

Offline Hurricane

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Re: investing - buying and selling guns on the side
« Reply #14 on: September 10, 2016, 08:11:46 AM »
If you are going to buy stuff to sell, whether lowers, mags, or whatever, make sure it is stuff you can use yourself if you can't sell it.

If I have a box of mags that don't fit MY gun, it is just a doorstop.