An article on suggests buying firearms and ammunition as an investment.

  • One of the reasons why firearms and ammunition can be expected to appreciate stems from the relationship between violent crime and the business cycle. As one might presume, violent crime rates tend to fall during the boom-phase of the cycle, and rise during the bust-phase.
  • Barack Obama has made no effort to conceal his intention to not just reinstate the now-expired Federal assault weapon ban, but to make it permanent as well. The fact that firearms manufacturers have a reasonable expectation that the ban might be passed is enough to keep them from investing in the capital equipment necessary to dramatically increase the production of firearms.
  • Add to this the fact that gun-control advocates have been pressing hard for years for other gun laws (such as legislation mandating so-called “smart guns”) that will also require firearm manufacturers to invest more capital to retool (and which will make guns more expensive), and you have all the ingredients necessary to keep firearms manufacturers from investing to increase production.
  • Adding still more distortion to the firearms market is the government’s own demand for firearms and ammunition for war-making purposes.