Buying Precious Metals: Gold, Silver, and Platinum Vs Brass, Lead, & Steel

Should I Buy Gold or Guns?

In settled times when things seem all as they should be, it isn’t strange for many to contemplate alternative and additional investment avenues. It is even more common during times of Nationwide turbulence for some to question the traditional 401K and stock/bond related investment options. It is a common question many have regarding precious metals, and the benefit of taking a stab at buying some. I want to share my individualized opinion on the subject and shed some potential insight. Just know, this article is for entertainment purposes and I am not a financial advisor. If you are seriously considering investment opportunities, I would recommend seeking out a financial advisor to help you get started. Unless of course, you are looking to invest in Brass and Lead, then in that case, I am Your Guy!

For the purposes of this article we will not go into deep detail about whether investing in alternative options is a good idea, or if it actually protects you from dollar devaluation. For the sake of time I will assume everyone who is here has found peace in their heart in pursuing alternatives to the traditional avenues of investing, and instead focus on answering the question of “Do I buy Gold or Guns”.

Buying Gold

We won’t go into a gold history lesson of some potential triggers that influence the fluctuation (both short term/long term and positive and negative swings) but if you are interested in investing in Gold I would recommend researching exactly that. Historically I believe Gold has been used as a hedge against inflation. It is rather volatile in the short term (price fluctuates up and down quickly) but seems to have historically held its value and increased significantly over a large span of time. It has a history of dropping several hundred dollars over a span of 3-6 months, but was able to be purchased for less than $100 just over 50 years ago. Things like Recessions, Tax Cuts, Expansions, and dollar valuation have all played a significant role in the value of Gold, but one cannot argue the positive slope in its valuation over its history. If an asset shows great long term value and the price continues to climb over time, it tends to be a rather safe long term investment.

Historically Gold also tends to hold an inverse relationship with the dollar. This means that when the value of the dollar is up, the value of gold is down. If the value of the dollar is down, Gold is typically up. Although there is a correlation, many believe there is not a causation. This means that this is how it happens most of the time, but not always and that one may impact the other, but it does not cause it to happen. Given this information it would suggest that now is a great time to buy gold (although you may be buying at a peak in price). The value of the dollar is continuing to be hammered down, and inflation is on the rise. As inflation goes up, the value of the dollar goes down, and the value of gold tends to climb as well. The asset is in a very valuable season.

If I believed the dollar is losing its value, the stock market is too volatile to trust, a typical 401K may be too fragile to trust, and I did not see the collapse of the financial system happening in the next century, Gold/Silver/Platinum etc would be a wise play. I’d buy a bunch of bars, stick them in the safe, let the long term value climb, and plan to sell when I needed the revenue. Again, this is not financial advice, only my opinion of how I would approach my retirement if this is what I expected of the future.

Buying Guns and Ammunition (Lead/Brass/Steel)

Guns typically come with a higher level of immediate depreciation. They are similar to a car in my opinion. When it is brand new, it holds its highest level of value. Once a car leaves the lot, or a gun goes bang, there is an immediate depreciation in its value. This is due to the condition of the asset transitioning from New to Used. There is however, a similar positive slope for firearms and ammunition as there is for Gold. Back nearly 50 years ago, a Remington 700 Bolt-Action Rifle sold for around $150. Similarly a Colt AR-15 sold for roughly $230, and a S&W was under $100. Both ammunition and Firearms are historically known to maintain a relatively high resale value, and after you get past the initial depreciation from “New” to “Used” they tend to maintain a very low level of volatility. As long as the condition of the firearm is maintained, the price should not depreciate much over the years. I believe it is a “safer” investment in the fact that you know the floor of your investment (your floor is the bottom dollar through depreciation) and you know it will not decrease to $0 value.

Another benefit of purchasing Firearms and ammunition as an asset is their ability to protect the remaining assets in your safe. No matter the amount of any other assets you own, the value that asset offers to you is only worth as much as your ability to keep it. If you have 500 troy ounces of Gold but nothing to protect that asset, you may no longer have 500 troy ounces of Gold (Thus the invention of the banking system at is core). Firearms are a valuable asset in and of themselves, but also can protect the rest of what you own.

Another notable point to make in the conversation, is if the economy was to completely tank and the dollar would completely lose its value, Gold would most likely not be able to be traded. If the economy tanked to 1930’s level and the Nation experienced another Great Depression, very few would want precious metals. If you are out of work and in need of food, water, and clothing, many will most likely not desire the precious metals of old. You would rather have tradable goods that would translate to immediate value to survive. In this example, Firearms, ammunition, and accessories would hold a much higher practical value. They would also be used for immediate protection and enable you to hunt for game. I am not suggesting the economy is going to collapse. I do know however, some do believe this is the path we are on and this is the reason they cash out their 401k and buy Gold. If that was my projection of the near future, I would not do that. I would instead invest in Firearms and Ammunition.

If I believed the collapse of the financial system was going to happen within the next century, I did not trust the connection of Gold to the financial system (weather it has a inverse relationship or not they are connected), I wanted to make sure I invested in a low volatility asset, I would invest in Brass/Lead/and Steel (Firearms and Ammunition).

Conclusion:

In the end each individual will assume some risk, as they do when purchasing any asset. It all depends on what the individuals true belief is regarding the direction of the Country and economic system. I do not know that any of us can predict for sure what the future holds for both sets of precious metals, but one thing is for sure. Time will tell. Just be sure your research is thorough, your heart is at peace, and your decision is one in confidence. If you fall into the latter category discussed, I would be honored to assist you in the purchasing of your Lead/Brass/and Steel by clicking HERE. If you find yourself in the former paragraph, then be sure to arm yourself accordingly to protect your assets. Either way, if there is anything Elah Armament can do to assist you, please let us know, and God Bless America!