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Guns: A better buy than stocks

Posted Apr 16 2009, 12:20 PM by Minyanville
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Forget stocks and bonds, the real money's in guns.

The Wall Street Journal reports artillery enthusiasts are stocking up on guns and ammo, not necessarily ahead of widespread civil unrest resulting from our ongoing economic swoon, but as an investment. These trigger-happy speculators are betting President Obama will institute a ban on assault rifles, which would crimp supply and send prices, well, shooting up.

For it's part, the Obama administration says it has no plans to enact such legislation and supports the Second Amendment right to bear arms.

During the federal ban on semiautomatic weapons from 1994-2004, prices soared. Recent buying has reached almost a frenzied pitch, creating backlogs for popular models and enabling resellers to list certain guns well above suggested retail prices. AK-47s doubled in price between September 2008 and the end of last year.

Ammo, as well, has become a hot commodity. As one supplier said, "(Ammunition) beats the hell out of money markets and CDs. You can double your investment in ammunition in a year."

Equity investors, too, are betting on Americans arming themselves to the teeth. Smith & Wesson (SWHC), maker of Dirty Harry's weapon of choice -- the .44 Magnum -- has seen its stock jump from around $2 per share to over $6 since Inauguration Day. Still, shares are off around 70% from highs seen as recently as late 2007. Sturm Ruger (RGR), another gun manufacturer, has seen a rise of almost 100% in 2009.



As Minyanville's Kevin Depew is apt to say, "These are heady times we are living in." The Journal running a front-page story on buying guns rather than stocks is indicative of just how strange things have become.

Recent volatility in financial markets is driving Americans to seek alternative ways to protect -- and even grow -- their money. And while we're yet to see widespread construction of bunkers, protective trenches or armed militias patrolling the streets, the country is on edge to an extent not witnessed since September 2001.

I mean, pirates are all over the news, for God's sake. Pirates!

Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Contributor Andrew Jeffery.

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Comments

 

We're just 'clinging' to our guns, families,  &  religion;. 'cause when the government leaders let us down and in the dust... what else have we got?

Did any of you morons actually read the article?

Let me paraphrase: The NRA has told you Obama was going to take all your guns so you are buying lots of guns and ammo and the stock prices are going up.

I didn't see anywhere in the atricle that says he is pro-gun or anti-gun.

I did just buy my wife a nice little 9mm last week. I own several firearms and have heard the "honey, when are you going to teach me to shoot" pleas for the past two and a half years.

What am I worried about with Obama? Ammunition. During the campaign he made a number of disturbing comments about ammo. I've been stocking up on 9mm (for my Browning and both of our S&Ws), .22 long (I have two Marlin 60s), and Russian Shorts for my SKSs. While I don't think Armageddon is around the corner I don't want to pay out the wazoo for ammo, denying me one of my favorite hobbies, shooting.

I'm going to scout out manufacturer's stock prices while I'm at it, just for grins.

to Wisconsin Veteran.

The article itself may not state Obama's position on guns, but Obama himself made a number of statements during his campaign. THAT, my friend, has gun owners a little edgy.

guess I just am stupid...but it appears to me that all this money and assault weapons heading southof the border and drugs nortyh is a prelude to ban..Is anybody so ignorant that thery think a boat from China or North Korea would not be anchored off shore unloading tons of assault weapons ...tow missles and 50 caliber sniper rifles into small boats for a trip to the Mexican drug dealers...does no one know that there are huge numbers of internation weapons dealers....all you hear about from every news cast is American weapons....a long time ago a Navy  Captain was in South American when all our military attaches at the embassies were CUBANS who articipated with are goverment at the Bay of Pigs.. we were supplying AK's to make it look like they were coming from Russia and the Russians were suypplying them with M-16's that they picked up in Vietnam.. remember everyone should read the Thomas Jefferson quotes about the 2nd ammendment....Iguarantee that with a small amount of training merchant crews with tripod mounted 50 Cal's could shred pirate small craft from at least 1/2 mile

The "LEFT" has 8 years of frustration to fuel their efforts to "control individual gun ownership"due to the previous administration and the efforts of the NRA. Everyone should prepare for an onslaught of attacks on our gun rights, cleverly disguised as protecting children,making neighborhoods more safe, and helping Mexico defeat the "drug cartel". Our current President is one of the most anti-gun legislators ever(check his voting record) and we should not be surprised when the attacks begin.....

Mr. Harrison is right.  Firearms are getting scarce in the stores and ammo is virtually non existent in the catalogs and stores.   The price of firearms have gone up due to hoarding.  It is not a crime, but it is also not something that should be taken lightly.  The Hunter and Shooters of America have actually initiated a self imposed restriction on firearms.  It is called supply and demand.  Prices are too high for a great many hunters and shooters today.   The supply is not likely to go down, as the amount of Firearms and Ammo can be controlled by the vendor.

People are scared of the Liberal Congress and the Obama Administration's long standing anti-firearm agenda.   Look what Napolitano said about our troops the other day.  Anyone that likes firearms and abides by the Constitution is a Right Wing Radical.  Where were the words for the Left Wing Radicals like William Ayers?  Can't say anything about your own side.  That wouldn't fly with you constituents.  This is simple political postering, pandering to the choir.

Yes, the NRA did tell us the administration would most likely try to take our firearms from us, by way of direct or back door tactics.  That is the agenda I pay my dues for and would expect nothing less from them.  

The President is a Constitutional Lawyer.   Right now he is appeasing people to get in the agenda he wants to get in.  Once he is in position, he will show his true colors.

As usual, Obama is lying.  While he may not propose legislation to outlaw automatic rifles, he will certainly support the witches (Hillary) and that idiot Napolitano's stand that these types of guns are a threat to the security of the US.  There will be treaties and, who knows, maybe the Department of Health will get in on the deal declaring them to be hazardous to the health of the citizens.  These people are sly and tricky.  They should not be trusted on anything that they say because it is a lie!  They're all liars!!!

Just read the first few lines of the article, and see what a wimp uses to describe law abiding citizens.  "artillery", etc.  is just like a tree hugger would say it.  I am  proud to be a veteran and would love to talk to the idiot who wrote the article.  The media is totally liberal and has forgotten to report the truth in an unbiased form.  Most stations didn't even give the "tea party" coverage.  These cowards forced Ohmama on us, and now they have no where to hide.  I think all welfare recipients should have to pass a drug test to get their check.  That would stop a large part of our national debt.

When the Sh it hits the fan.  What are you unarmed people going to do?  This could be just from a gang or a mob and or someone trying to kill you in your own house.

Think America!   You need to protect your Family and Friends/ Americans..

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