Investing in Guns & Gold
For centuries there have been two things that people turn to in times of economic or political stability—guns and gold. Today, not much has changed. Though there is a large market for guns and gold sold to enthusiasts and collectors, there are still many people who see these two assets as more of an investment. To some, it may sound dramatic, but there are many arguments that can be made for acquiring firearms and gold bars.
In this article, we will take a closer look at investing in these types of hard assets. We’ll also examine how they can be beneficial in different circumstances. Whether you are new to investing in physical assets or simply want to educate yourself more on the advantages of guns and gold, we encourage you to keep reading!
What are Hard Assets?
By definition, an asset is any resource that has economic value and can be converted into cash. They are typically owned by individuals, corporations, or countries with the expectation that they will provide some benefit in the future. Assets can come in all shapes, sizes, and values, but in general, they can be broken down into two categories:
- Hard Assets: These types of assets are also called tangible because they are physical resources. Examples of hard assets include land, precious metal, oil, art, collectibles, and infrastructure.
- Soft Assets: This type of asset is intangible because it does not come in a physical form. When people refer to a soft asset, they are typically talking about something like intellectual property, human capital, customer relationships, and brand recognition.
Many people prefer to invest in hard assets over soft because they feel more secure with something that can be seen, felt, and protected. This sense of security makes hard assets especially valuable when countries, companies, or individuals are facing times of uncertainty—whether it's political, financial, or environmental.
Some more examples of popular hard assets include:
- Buildings
- Cars/Trucks
- Office Furniture
- Machinery
- Paintings
- Jewelry
- Gold Bars
- Guns
- Real Estate
Why are Gold and Guns Good Investments?
If there are so many different types of hard assets, what makes gold and guns so special? Why do people continue to invest in them? Many people consider gold to be a hedge rather than an investment. That means that the goal is for the asset to store value rather than to make more money.
For example, it can help to hedge against inflation. As the value of a currency drops, the value of the gold remains the same, so you don’t lose any of your “investment.”
While many people view gun collecting as more of a hobby, it can also be seen as a solid investment. This is because it is another great way to store value and hedge against any inflation or economic issues. Though most guns are not known for appreciation, they hold their value very well. It’s unusual for them to depreciate and outright rare for the prices to drop completely.
What Types of Events Will Benefit from Investments in Gold & Guns?
Since most people aren’t investing in guns and gold to make money, there are unique situations in which the owners will benefit from these unique hard assets. Some events err on the more dramatic side, while others may seem like a legitimate, looming disaster. Let’s take a look at three different scenarios where people will benefit from gun and gold ownership.
Total US Economic Collapse
To start things out on the more realistic side, we have a total crash of the economy. These days, it seems like many countries are still trying to recover from the devastating economic impact that Covid-19 had on the world. In countries where war and political instability are more rampant, this type of event is all the more likely.
Is a recession coming in the US?
It’s hard to say for sure, but fortunately, both guns and gold can hedge against any financial collapse because they will continue to hold their value regardless of what is happening around them. People who keep their money stored in banks or stocks may lose everything, but the value of gold and guns will remain relatively unchanged.
Civil War
In some countries, the risk of civil war may seem more realistic than in others, but no matter the case, it’s important that citizens know how to prepare financially for war. Again, with civil war comes economic collapse or instability, so investors will appreciate that their hard assets, like guns and gold, held their value even when their currency tanked.
We cannot neglect to mention the added benefit that guns can also provide physical protection as well as financial. The fact of the matter is that guns can be used to defend yourself, your family, and your property in times of civil unrest.
Apocalypse
Everyone seems to have their own idea of what the apocalypse will look like. Some preppers imagine there will be zombies. Others picture more of the fire and brimstone aesthetic. There’s no way to know for sure if or when an apocalypse will happen, but guns and gold will always be an asset on every prepper's checklist.
As we’ve already touched on, they are great for both maintaining value and protecting. When money loses all of its value, gold and guns can still be traded for food, medical supplies, and other items, and if you find yourself facing a mob of zombies or mutants, you can always defend yourself!
Start Investing in Gold and Guns Today
With all of the advantages of investing in gold and guns? What’s stopping you from putting your money into something that will hold its value even when the world ends? We recommend that you start shopping around for gold bars, bullion, or coins.
Not sure where to get started? You can go to a local or online firearms retailer and see what they have in stock. Online malls like Guns N Gold are great places to get deals on firearms, ammunition, and accessories. However, it’s important that you make sure the shop has a Federal Firearms License to legally sell you a gun. Gold can also be purchased from an online precious metals dealer.
If you’re interested in reading more about rare US coins, check out some of our other great posts including, ‘Investing in Gold Coins vs Bars’, ‘Gold Spot Price' and ‘Widow's Mite’.
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