I think that's true for several classes of collectible firearms right now. Winchester lever guns are in decline largely due to collectors dying off resulting in collections coming on the market but with far fewer new collectors coming up to buy them.
A lot of younger shooters right now are more interested in spending large amounts of money on high dollar precision rifles with high dollar optics and suppressors.
Lugers fall in the same category. WWII vets were in their 40s and 50s when I was young and were still just in their 60s when I started buying guns. WWI was 65 years in the past when I bought my first gun and WWI vets were in their 80s, but still around.
Now, the WWII is 75 years in the past, and WWI just over 100. Shooters' connections to those wars is much more remote and much more indirect. Lugers are not nearly as prevalent in popular culture and while still iconic, don't have as broad an appeal.
That makes it a buyers market.
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Shooting a Luger is a great experience. It's a dated design with a single stack magazine that won't drop free from the mag well on it's own and the location of the safety isn't ideal, so it's tactically irrelevant.
However, they point exceptionally well and when properly sprung they run a smooth as a sewing machine and are extremely nice to shoot.
Everyone should shoot a nice Luger at least once.
Very eloquent explanation of the fading interest in the Luger. Basically it all boils down to "its an old-guy's gun" and there aren't as many of us "old guys" left to appreciate or compete for them.

Your description of shooting one is spot on too. I've never heard of the action being compared to a sewing machine, but I love the analogy. Like a sewing machine the toggle has an up and down motion, and the whole thing has a feeling of coordinated complex small machinery.
Operating that toggle also dampens a lot of the recoil energy, and helps make them soft shooting for such a relatively light gun. And they definitely balance and point like nothing else. Overall, rather an elegant weapon IMO.
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