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Would You consider a registered mg an investment?

Discussion in 'NFA & Class III Discussion' started by JesseR, Oct 27, 2011.

  1. JesseR

    JesseR Sharpshooter

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    Been looking at investment options and considered adding a HK sear to the list.

    Any thoughts as a long term investment for a fun toy?
     
  2. Ignored Member

    Ignored Member Sharpshooter

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    Absolutely. My dad had a UZI MG that he bought a few years back for around $3500 and 4ish years and a few thousand fun rounds later he sold it for $8,000 so yes, MG's can be a great investment.
     
  3. ratski

    ratski Sharpshooter

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    Yes and No.

    Every machine gun I have purchased has gone up in value. However, the market has been very, very soft. I noticed the prices leveling off and then going down slightly before the press started noticing the same thing about our economy.

    Machine guns are a fixed level commodity. There are only so many available and many people want them. Every year their number gets smaller for various reasons. Seems like, every year, more and more people want them and that drives their value up.

    I believe that in the State of Oklahoma, if you declare bankruptcy, the law allows you to keep (among other things) one firearm. I would look at getting and keeping the most expensive I could.

    However, if you are going to invest in Class III machine guns for investment purposes, I would say "don't". Look at what happened in 1986 and then again in 1996. No more manufacture of machine guns for civilians. No more "assault weapons" for civilians. The government can get rid of your "investment" with the stroke of a pen and there would be nothing you could do about it. After all, even if all 200,000 machine guns were owned by 200,000 individuals, how many votes would that be? 4000 per state?

    Remember Bill Clinton talking about magazines that held more than 10 rounds? I can still hear him saying "that is just wrong".

    If you want to get into it for fun. Then yes, get into it for fun.

    There can even be tax advantages, with the right accountant. After all, if you get a firearm as an investment, then just like stocks, the expenses around that investment to study it, understand it, ensure that it functions are tax deductions. But then, if you sell it for a profit you have to make sure you declare it.

    I remember reading an article in Small Arms Review (I think) about this. Check out their index and see if you can find the article.

    If you are going to "invest" then get something that is more liquid than an HK sear.

    Right now, I think an HK sear is just a piece of metal and runs 12K. And that is without any firearm attached to it.

    An M16 would cost around the same and you would have a firearm in addition to the "sear". So you could have fun with your investment. Plus, it looks just like everyone else's semiauto AR15.

    An Uzi would run you between 6-7K. You could get two for the price of the one sear.

    M11s can be found for 3K. You could get 4 of those.

    There are alot more buyers for a 3000 dollar item than there are for a 12,000 dollar item.

    And with the whims of the ATF, there is always the possibility of them one day saying something like "if the sear is not in a firearm as of today, it is no longer possible to install it in a firearm" thus rendering your 12K investment worthless. Think that they can't do that? Look at the "Street Sweepers". One proclamation from Lloyd Benson and you had to register them or they became contraband.

    Class III is alot of fun, and the values have consistently gone up, but don't invest in it with money that you need.

    It is too risky.

    Buy them for fun. Shoot the hell out of them. Enjoy them for years. And if you sell them, and make back your original price (or a little more) than you have done well. Ain't many cars that you can say that about.

    Dave
     
  4. CAR-AR-M16

    CAR-AR-M16 Sharpshooter

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    Well said Dave. I was about to respond with this same info.
     
  5. Ignored Member

    Ignored Member Sharpshooter

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    My answer looks stupid now that you went all detailed on it. lol
     
  6. GlocksInMySocks

    GlocksInMySocks Sharpshooter

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    ha, I hate it when that happens
     
  7. Glocktogo

    Glocktogo Sharpshooter

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    I still think it's worthwhile if you're in it for the long term, and you do it with money you don't need. I'm not big on HK sears, because you need a different host firearm for every caliber & configuration you'd like to shoot. With a registered M16 lower, RDIAS or Lightning Link, all you need is a comparably inexpensive upper and mags to feed it. Caliber options are vastly expanded as well.

    Just remember, it's a long term investment. If you need to get out of it quickly, it may cost you a penalty. Sure, the .gov could kill your investment with the stroke of a pen, but any worthwhile investment carries risk. This risk is arguably lower than a lot of investment risks in the current political and economic climate. And if things ever really go to hell in a handbag, you'll have a full auto and most of your neighbors won't. :)
     
  8. JesseR

    JesseR Sharpshooter

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    Well I refer to HK's because I have hosts in every caliber and option I could want. Not to mention my dad also has several that will be mine one day. Therefore an HK machine gun would be a ton of fun in everything from 308 to 9mm.

    I have not found many m-16's for less then 17K+ where as I can get the HK Registered Trigger Box with another host gun for $15.5.

    I like the ideas of M11's and Uzi's as other fun guns. I have reservations about this as an investment just because of our wacky government, but I do feel it would be a lot of fun to shoot.

    Anyway, just wanted to get some input from other C3 owners...
     
  9. ratski

    ratski Sharpshooter

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    Since you already have the HKs, then the sear may definitely be the way to go.

    If you haven't found M16s under 17K, I'm not sure what you are looking for. Are you looking for Colt M16s that are marked as such?

    I've seen plenty of RRs recently for as low as 10.5. Admittedly, most have been conversions, but a good conversion is pretty close.
    I got a conversion that says "AR15" on it, and has no "auto" markings on the receiver.
    I could have gotten one marked M16 for a similar price, but decided that while having the markings might be "cool", having it marked as AR15 makes it less conspicuous to an "interested" party.

    I will warn you that fullautoitis is addictive. There is no known cure.

    Dave
     
  10. english kanigit

    english kanigit Sharpshooter

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    Fun toy? Absolutely, yes!

    Investment? Absolutely not.

    If and when the legalities of the NFA ever get challenged you can bet your ass that every idiot with more money than sense will be fighting tooth and nail to keep the laws the way they are. If the NFA gets overturned and/or the registry is open for new guns their multi-thousand dollar 'investments' become nearly worthless in the stroke of a pen. You can bet people with 10-250k or more wrapped up in this sort of thing will do nearly anything to keep that from happening.

    Will there be exceptions to that rule? Of course but make no mistake it will be the rule.

    Ek
     

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