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I am wondering how the value of collectible Winchester rifles has trended over the last 10 to 20 years? I started my small collection of nice quality shooters a few years back but am thinking about taking some of my money targeted for retirement and buying “investment grade” Winchester rifles. My area of interest is lever action guns from the late 1800s to the early 1900s and I would like to stay in that area with investment quality rifles. I currently collect and shoot model 1894s and will continue to do so.
I am thinking of looking into models 1873, 1876, and 1886 for investment potential. Not only for that but also to be able to enjoy my investments. My 401K is just a number and I may never get the chance to use it. Any advice/information concerning the best models to buy and also % of increase in value since the late 1990s would be helpful.
FYI, I plan to retire in 12-15 years and have nearly maxed out my allowable 401K contribution. I don’t know much about the stock market and would rather invest in something tangible that I can also enjoy.
I sure hope you are thinking of investing future money and are not withdrawing from your 401k. To do so incurs a 10% penalty.
Historically, investment grade firearms have done quite well. So, too, have shooter grade pre 99 Winchesters, although not nearly as well. These guns with patina recently are not doing so well. Even some very good investment grade firearms have backed off of highs.
This might be a risky investment. Too risky for retirement funds. Hopefully, investment grade firearms hold their value. But, there is much less interest in these amongst younger generations, so future returns might be muted or negative.
mrcvs said
This might be a risky investment. Too risky for retirement funds. Hopefully, investment grade firearms hold their value. But, there is much less interest in these amongst younger generations, so future returns might be muted or negative.
Whether values go up or down, I find it rather depressing that some folks (probably a good many) buy guns not primarily for the love of their history & the challenge of collecting, but merely because they’re a viable alternative to stocks & bond. Those who do are investors, nothing dishonorable about that, but they aren’t truly collectors, in my opinion.
No 401K withdrawals planned. Just looking for a way to make a little money doing what I enjoy. I believe you can do both, after all a dealer can sell at a profit and still be a collector. I have no plans of becoming a dealer, just to buy the right model and quality that my money is at least not lost and at best makes a fair profit if/when I need to sell. I’d rather have guns in the safe than stocks in a safety deposit box.
I’ll have no safe queens, but will certainly have some models I shoot more often than others.
As our age group gets older the resale price of our guns has gone down in the last few years. A true collector will take advantage of this and buy more guns.
If you are under 59 1/2 there is a way to get into your 401 without the penalty. It is called a 72 T plan. This should only be used in a REAL emergency!!
I truly believe antique guns are are not the best investment when compared to a 401. If you are maxing out your yearly contribution into a 401 any extra money could be used to buy some guns. The better guns hold their value. Guns will always have some resale value.
I remember 30+ years ago what my 70 year old friends were collecting. Only the very best of these guns bring good money today.
Chuck said
I remember 30+ years ago what my 70 year old friends were collecting. Only the very best of these guns bring good money today.
So do I…very vividly! And it never occurred to me to doubt things might be different someday–especially with every dealer proclaiming “better buy it now, or it will cost more the next time you see it!” The great collections sold off at that time, like John Dutcher’s, were the ones that hit the all-time jackpot. (I bid on a couple of Dutcher’s, & though I was at the time crushed by how badly I was beaten, I’m not so disappointed now that I didn’t get them!)
It sounds like what you all are telling me is what I have been telling fellow car hobbyists and that is to buy what you like and buy the best quality you can afford. I’m not looking to get rich, just not loose a lot and maybe make a little by buying a higher quality gun than I currently collect with funds separate from my collector gun purchases a couple times a year.
In my world, what I collect are good shooters with about 50% of original finish, little in the way of special order features, and less than $2000. These are guns I take to the range 3 or 4 times a year and put 20-40 rounds through them and may even consider competing with them, time permitting. I prefer model 1894 rifles.
To me an investment gun would be 80% or better original finish, possibly some special order features, and cost $5000 and up. I would want both to be untouched originals. Probably not an 1894 rifle unless heavily optioned or near new condition.
Online
Mark, The problem with investment guns is trying to sell them for retail without a commission. If you use an auction service when you buy you are paying full retail and you would have to use a auction service when you sell to get full retail. Example: buy a nice gun at the auction for $50,000. (A good investment is one that is secure and doubles in 10yrs.) Sell the gun ten years later for $100,000. add the fees and it cost the buyer $135,000. In the example the original seller got approximately $37,000 after fees for the gun you paid $50,000 for and sold it ten years later for $135,000 so you could get your $100,000 after fees. The gun would have to go from $37,000 to $135,000 value in ten years, I wouldn’t want to bet my retirement on it. The only people making money on investment quality guns are the big auction houses. It’s hard to sell high price guns (over 15k) at a gun show or on Gun Broker for retail. The auctions are the only retail outlet for high priced guns and the commission is the problem. T/R
Mark, If your investment is in the $5,000 range you do not have to deal with a auction company, you can sell direct. That helps but it is hard to imagine a sizeable return on your investment. The return is the hobby. T/R
November 7, 2015
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I’m an investor and a collector but my collection hasn’t been a very good investment lately. I have made some good buying decisions since I began actively collecting but have yet to sell more than a few for profit. OTOH they’re a lot more fun than the stock market, especially over the last few months. My goal is for my collecting activities to generate enough income to cover related travel expenses but so far that’s just a goal. When meeting with my financial advisor I refer to my collection as my “blue steel and walnut” commodities holdings. It’s good to diversify!
Mike
To Mark, and All;
I started collecting Winchester Model 1873’s over 30 years ago. In those days one could but a “fair” quality rifle for between $250 – $450. My first ’73 was a shootable but heavily “Patina” finished ( rusted finish ) 38/40 with a button magazine. When I sold it less than 5 years later I made a very handsome profit. The days of buying Winchesters or Colts or even Marlins for those prices are long gone. I sold off most of my collection of 1873’s, and did very well as far as profits were concerned. I’ve but a few Winchester firearms remaining in my collection, all rather expensive. These are in the $5000.00 range to over a few $100,000.00 priced firearms of various manufacturers, ( Winchester, Colt, Springfield and Walther ) both antique and of WW2 vintage. As TR pointed out, to sell these in todays market you almost always have to go the Auction route. Your profit on these sales are limited by how much you paid, how much it sold for, the commissions paid, and last but certainly not least, the various taxes it will cost you on any profit made. Todays market for Antique Winchesters has come down with the lesser amount of interested buyers. Hence there is less profit to be made, even for top quality grade guns. I would recommend that you study the market as it exists today, then decide on what to buy for future profits. In todays market I find early SAA Colts ( 1849’s – 1873’s ) are doing better than are Winchester firearms of the same period and condition. There seems to be a bigger market for them. There is a big market for WW2 vintage Walther pistols, but prices to buy them have gone crazy. As I’m sure we all know, the secret to making big profits in any commodity is in the buying, and not only in the selling. Mark I wish you the best of luck in this venture.
Apache ( ya ta hey ) 
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