$$$ Ammo as an investment

[Backlighting]

A friend recently told me he will be spending $10,000 acquiring ammo to be stored as an investment.
We both discussed which calibers and agreed the most popular (most in demand) would be prudent. That included 22lr.,9mm, .45ACP and 5.56.
How much the investment will increase is any body's call.
Definitely better, we agreed, than cd's, which are yielding a pathetic approx 1.25% APY
The page you tried was not found.
Better than gold or silver bars/coins?
There you might be rolling the dice?
Stocks? same as above.

We all know that in a country wide economic meltdown, resulting in rioting and looting, ammo would command a hefty premium from what you paid for it...
and just look at how the cost of ammunition has increased in the last few yrs. without any meltdown.
Just keep a sufficient amount of rounds/calibers you own firearms in.

Thoughts, anyone?

 

[arjay]

His heirs will likely end up selling it at a discount.Tell him to buy real estate instead.

 

[Backlighting]

His heirs will likely end up selling it at a discount.Tell him to buy real estate instead.

Here's some considerations:
Suppose he's determined to sell the ammo in 10 yrs? (he also owns some R.E.) $10,000, even highly leveraged, won't get much property. And more importantly, how quickly can you turn over R.E.? Quicker than ammo? And in especially an economic meltdown ...you won't make squat...assuming you can sell it. Prices from the last bubble have still not reached what they were before the collapse, several yrs ago.

Just sayin.
Something to think about.

 

[mscook]

Ammo as a Investment

I spoke to the sell's clerk Yesterday at Cabela's
He said they still have people Buying Bulk 22
repackaging and selling at a profit.
I has a bulk box of 22 in my hand and 4 other on the self.
When we finished talking ( about 2 min ) the other boxes
had sold.
Also about 2 mts ago someone walked into Palmetto State
Armory and bought a full pallet of 223's at a cost of
18000.00

I am not a investor in anything much other than S&W's
but I don't think he will lose any money. That's just my
opinion.

 

[Backlighting]

I spoke to the sell's clerk Yesterday at Cabela's
He said they still have people Buying Bulk 22
repackaging and selling at a profit.
I has a bulk box of 22 in my hand and 4 other on the self.
When we finished talking ( about 2 min ) the other boxes
had sold.
Also about 2 mts ago someone walked into Palmetto State
Armory and bought a full pallet of 223's at a cost of
18000.00

I am not a investor in anything much other than S&W's
but I don't think he will lose any money. That's just my
opinion.

Understood.
Do you know how many rounds in that pallet?

 

[Ozark Marine]

How about real bad dudes find out your buddy is sitting on a ammo depot. Will he take their I O U, cause they sure ain't going pay.
Let's say he tell's friends he's got the ammo they NEED. Boxes of 9mm FMJ WWB for $50.00 a box. Now he just PO'd the guy. He spreads the word buddy x has ammo, but ripping friends off on price. Word spreads, mob forms, and he lose's more than his ammo.

 

[arjay]

I have a friend that bought a pair of Colt ARs back in the Clinton days for top dollar.Same guy also bought gold when it went nuts in that era.
Don't invest in hysteria unless you're planning to flip it quickly to the next sucker [emoji1]

 

[PatriotX]

As a short-term investment, say from now until next November-ish, there could likely be a profit made.

How much effort is your friend willing to expend to sell this ammo ? There is probably more upside potential in repackaging 20-round lots out of a bulk 55-gal barrel of Lake City than flipping a pallet.

As a long-term investment, your friend may be better served purchasing a few blue-chip Smith revolvers. Unless a Scrooge McDuck-style dive into piles of ammo is a fantasy of your friend's, the guns will be more fun to own as well.

Heck, ten large would get you into a nice entry-level driver muscle car that might even appreciate. That would seem a LOT more fun than staring at crates of cartridges.

 

[mscook]

Investment

I don't know how many are in a pallet.
But I do know, They don't go bad, Their payed for
and they don't eat. I have made worst decisions.
I am not selling to any one I don't know or Trust.
Heck I don't do that now.I also sell Real Estate
for a living and if you want to lose some money
Buy some 10,000.00 property in upstate SC.
That's where some one will come and take that
away from you, are you won't go a show it to a potenial
buyer. This is just my opinion

 

[Szumi]

Ammo has a freshness date. It isn't getting better, it is getting older. Suggest some timberland, the trees will grow, they don't make land any more.

 

[Backlighting]

How about real bad dudes find out your buddy is sitting on a ammo depot. Will he take their I O U, cause they sure ain't going pay.
Let's say he tell's friends he's got the ammo they NEED. Boxes of 9mm FMJ WWB for $50.00 a box. Now he just PO'd the guy. He spreads the word buddy x has ammo, but ripping friends off on price. Word spreads, mob forms, and he lose's more than his ammo.

Of course the scenario you paint is a possibility,
especially if he "spreads the word".
The really bad dudes will be looking for cash,jewelry,drugs, guns/ammo etc.
Be prepared, as the Boy Scout motto states.
He has several firearms for that.

 

[Backlighting]

As a short-term investment, say from now until next November-ish, there could likely be a profit made.

How much effort is your friend willing to expend to sell this ammo ? There is probably more upside potential in repackaging 20-round lots out of a bulk 55-gal barrel of Lake City than flipping a pallet.

As a long-term investment, your friend may be better served purchasing a few blue-chip Smith revolvers. Unless a Scrooge McDuck-style dive into piles of ammo is a fantasy of your friend's, the guns will be more fun to own as well.

Heck, ten large would get you into a nice entry-level driver muscle car that might even appreciate. That would seem a LOT more fun than staring at crates of cartridges.

All of the alternatives you mentioned are certainly worthy options. I say spread out into different, but well thought out, areas of investment...depending on how much money you have.
Indeed, S&W weapons qualify.

 

[Chuck24]

If things get that bad, would you really want to sell your ammo? Better used for barter for things you need.

 

[gen3guy]

So the only way you're really going to make it big is if there's some sort of calamity. Some breakdown in civility or an economic collapse. Like shorting a stock. You may wind up using $5000 of your stash defending the other $5000. You are also betting against your society's survival. In the aftermath Dollars would be about as valuable as Pesos.

 

[Backlighting]

If things get that bad, would you really want to sell your ammo? Better used for barter for things you need.

Good point...bartering.

 

[Backlighting]

So the only way you're really going to make it big is if there's some sort of calamity. Some breakdown in civility or an economic collapse. Like shorting a stock. You may wind up using $5000 of your stash defending the other $5000. You are also betting against your society's survival. In the aftermath Dollars would be about as valuable as Pesos.

Suppose your intention is to make 7-8% per yr...which is not making it big, way better than a cd.
And oh, I'm ok, as I would guess you are, with spending $5,000 of the 10K if it saves one's life
during a monumental crisis/riots.

 

[DocB]

You invest in hysteria when the hysteria is permanent. At the rate things are progressing in this World, we're about there.

 

[gregintenn]

Why not take the ten grand and buy stock in a few ammo companies?

 

[THE PILGRIM]

You need to decide- do you want to really invest- that requires a successful economy.
Or- buy end of civilization survival supplies.
I actually do both, I have successfully invested in stocks, bonds, real estate, etc for a number of years.
Do I have a healthy ammo supply?
What do you think?

 

[southcoast]

S&w stock more than doubled over the last year. Much better return and doesn't require a business license to sell in order to stay within legal parameters.

 

[Backlighting]

Why not take the ten grand and buy stock in a few ammo companies?

For me, too much manipulation by insiders, the gov. & special interests. Plenty of companies with healthy financials that are trading at a disproportionate price.

 

[Backlighting]

S&w stock more than doubled over the last year. Much better return and doesn't require a business license to sell in order to stay within legal parameters.

True, but they and the other ammo/gun producers are at the whim of those gov. officials who are in power.

 

[UNCLE PAULY]

The scenario of an economic meltdown would make paper money worthless.
How would he advertise to find people who have silver and gold currency?

With rioting and looting going on his stash of ammo would become a magnet for thieves and gangs.

Bad Idea imho.

 

[jkhouw1]

For me, too much manipulation by insiders, the gov. & special interests.

This pretty well sums up the market for. 22lr

 

[Irn-Bru]

Selling ammo is such a PITA. I've sold a little through Armslist and what a headache. So many flakes, lowballers and no shows. Guys wanting me to drive two hours to meet them, others backing out at the last minute after you've made arrangements to meet them. Your needs to think about how easy it will be to move hundred of thousand rounds of ammo.

 

[Backlighting]

Selling ammo is such a PITA. I've sold a little through Armslist and what a headache. So many flakes, lowballers and no shows. Guys wanting me to drive two hours to meet them, others backing out at the last minute after you've made arrangements to meet them. Your needs to think about how easy it will be to move hundred of thousand rounds of ammo.

I've sold g&a thru Armslist.
All buyers were required to meet me at a police station with a drivers license i.d and sign a bill of sale, close to where I live. Those were my terms & about 80% followed thru. The other 20% don't concern me.
Worth it, for me.

 

[regalsc]

Say you might need some money & ammo is plentiful at reasonable prices locally & to sell it you might have to pay shipping to where someone might want it?

 

[MichiganScott]

I think that the OP would be better off to spend $10 on a roll of tinfoil and manufacture himself some hats.

After reading this thread, I suspect that the friend is Backlighting himself.

 

[GatorFarmer]

I sold my old stash of ammo and mags. Ammo is heavy and a real nuisance to move around.

You have to know your market. I can't imagine some of the folks I used to sell to meeting in a police station. Not because they were criminals, rather because the people who constantly squirrel away ammo, regardless of price, tend to be wary of the government.

Anyway, one guy can't defend a big stash. It is different if you have a family and a compound, or even a gang. But if things are ever bad enough for ammo to really be at a premium, and you lack the experience and street smarts that come from experience dealing with illegal and high demand products...well you won't last long.

 

[RJJ 1971]

Investment to make profit = who knows if it's a good idea...

Investment to ensure you and your family can practice fundamentals and maybe eventually depend on, in a bad situation = good idea.

Letting anyone know exactly how much you paid for ammo or the exact amount of rounds you have = private information that shouldn't be shared.