Over the last several years millions of Americans have purchased guns or ammo. While a large percentage of these buyers are hunters, gamesmen or those that enjoy going to the range there are others that are looking to make a long term investment that is not in a company traded on the New York Stock Exchange. No matter how well the overall stock market is doing there are always some stocks that are going to depreciate in value. One bad earnings report can send a stock plummeting over 20%. Those that were shareholders of Yelp felt this pain just last week.
When trying to take the volatility and risk out of an investment some investors will look for physical or tangible goods. While gold, silver and platinum were popular investments recently, they have declined in value over the last two years. Something that has not declined in value is ammo. Guns and ammo will retain their value because of the use of the product. When holding on to a stock certificate that states an individual owns shares of Apple stock there are no actions that can be completely with this piece of paper. With guns and ammo an individual, or investor, can use the guns and ammo to protect themselves, hunt for game or enjoy shooting.
One of the more popular investments is in 22lr ammo. A 22 long rifle is one of the more popular and common guns owned by individuals in the United States. When there is a shortage of ammo the price can appreciate 20% to 40% in the blink of an eye. In fact, it is not unheard of for buyers to make 22lr ammo purchases early in the year and turn around and sell that ammo for a much higher price later in the year when the demand starts to go up.
Supply and demand determines the prices of all goods, services and investments. If there is a very strong demand for 22lr ammo it stands to reason the supply will be strained and the price will go up. In fact, there are some online ammo wholesalers that struggle to keep up when it comes to the demand for certain types of ammo during peak seasons throughout the year. Investing in ammo could prove to be very lucrative for those that know when the seasons will hit and the prices that will likely be available.
When it comes to investing it is always important to remember there are risks. If an investor drops $10,000 to purchase ammo that investor is going to have to either use the ammo or turn around and sell it at one point in time. During the commodities boom of the mid 2000’s a large number of investors bought gold and silver coins on eBay and Craigslist. Unfortunately, if they held these coins for too long they decreased in value. Now, they still have to sell the coins if they hope to get any type of return on their investment. If they are unwilling to sell they could end up losing all that money they invested. This is something to consider when you decide to invest in guns or ammo in 2015.