Investing in American Rarities
by Tom LoPiano Jr.
After years of outperforming stocks, bonds, T-bills and other more
traditional paper investments, historical Americana has taken off on
a tear that makes previous gains look paltry by comparison.
Prices and values of firearms are
shooting up faster than almost anything else on the market
and investors and collectors are capitalizing on opportunities to
invest and profit from them.
Cherished over the centuries by king and commoner alike, antique firearms have
found their way into the mainstream art world.
In the last decade, much of the interest and activity in
high-grade arms has switched from the "private" transaction of
hobbyists to public auction, resulting in dizzingingly high prices.
For example, a circa-1840 Colt Paterson engraved belt model
percussion revolver, which sold in 1988 for $50,000, sold at public
auction in 1992 for $770,000. A gold-inlaid Colt dragoon revolver
made for the Sultan of Turkey was purchased in the early 1970s for
$250,000.
A bid of $5 million was rejected for the piece in 1996 which now resides in
the Metropolitan Museum of Art.
Also, the finest condition example of Samuel Colt's first military issued revolver, known as the "Walker" Colt revolver, introduced in 1847 was sold at auction in November, 2008 for a world record price of $920,000.
Investment Diversification - A Hansen & Hansen Advisory
Many financial advisers recommend that investors place from 10-30%
of their discretionary funds in tangible assets to maintain a
diversified investment portfolio. Fine collectors' antique firearms
are wonderful tangible assets.
They can be touched, admired, and a fine collection can enhance your home.
It will have a mark of your own "personality" on it, unlike any stock, bond
or security transaction which may alienate a person from his investment. You
can actually become involved in your investment. Knowledge of collecting and
investing in rare antiquities can open up new interests and friendships and
involve interesting travel as well as enhance your ability to increase your
collection in size and value - and profit enormously from it.
An Opportunistic Market
A renewed interest in American history has been fueled by public
awareness via cinema and TV. This has expanded an already existing
market for collectors and created "new" and exciting opportunities
for investors.
Melding beauty and functionality, antique firearms and edged weapons not only
represent the pinnacle of the machinist's and engraver's arts but
also bear brand names of some of the oldest and most storied in
American history. Samuel Colt was a legendary industrialist long
before Henry Ford ever came upon the scene.
Oliver Winchester lived and died by the time anyone heard of Thomas Edison,
Alexander Graham Bell or the Wright Brothers.
Whether you collect or invest in valuable American historical arms
& artifacts, a common link is made - an
ever upward growth in value and profit.
Due to published uniform standards for recognizing value and
condition, the industry has grown in excess of 2,000,000
collectors (excluding hunters, who may own a variety of guns for
sporting purposes).
One study estimates that about half of American households contain
one or more firearms.
Those individuals entering the "historical" rarities market invest in a still
relatively small yet "liquid" market -( when compared to stocks, bonds, etc.
and gold, silver and collectors' coinage), but one offering a huge pool from
which fine collectibles can be acquired.
Collecting Objects of Value - Goals
While the primary goal is making a profit, enjoyment is a
wonderful by product of this market.
To capitalize and profit relatively quickly one collects for rarity and historical
value. Fine, high-grade items of proven rarity have shown remarkably
high rates of appreciation in a relatively short term. Colt firearms have always
been the "blue chips" of arms collecting in America and have
outpaced many other categories of investments in the today.
The interest and enjoyment in our country's past can be the vehicle to create a collection
of "rare art" that becomes an important store of value, a way to accumulate
wealth that can be passed on to future generations or used to fund your own
retirement. Therefore we urge our clients to view their acquisitions from both
perspectives - as a collection and as an investment portfolio. We at Hansen & Hansen
provide you with fine and diverse investment opportunities, Firearms, edged weapons, and historical emphemera. We
offer strategies you should employ to reduce risk and increase upside potential.
Tax Benefits, Capital Gains
and No Risk of Ownership
There are
few legal obstacles to discourage anyone from investing and enjoying personally
the collecting of arms and related antiquities.
With few exceptions permits are not needed - any gun manufactured before 1899
is considered to be an antique or curio under federal law and can be freely traded
across state lines.
Modern day gun collectors include the entertainers Mel Torme, Johnny Cash, Tom Selleck, Sylvestor Stallone, Buddy
Hackett,actor Rutger Hauer and John Entwhistle of the rock group, the Who; baseball
legend Ted Williams and businessmen Michael Korda and Ronald Lauder. Elvis Presley
and Steve McQueen both maintained large firearm collections, as have various
members of the Ford and Mellon families, and Alan Wertheimer, chairman of the
board of Chanel, who actually owns the gun-making firm of Holland & Holland.
Capital gains on antique firearms can
only be taxed upon liquidation, when profits are actually
realized.
There is no taxation on phantom or undistributed profits as there are with
some investments. No sales "loads" are imposed on purchases or reinvested dividends,
no deferred sales charges or redemption fees on turnovers and arms can be freely
traded at will.
Own a Piece of American History
Hansen & Hansen continually researches thousands of
collectibles to select the fast-appreciating investment opportunities
- high grade antique firearms, historically documented weapons of the
American military, and rare manuscripts, photographic and
autographs.
Premium condition Colt firearms of the period 1837-72,
Winchester firearms from 1849-1894, and historically engraved and
inscribed Civil War weapons are our specialty. Rare Colt models and
high grade presentation pieces can command premium prices.
Historical arms and artifacts- guns, swords and other items that
can be associated with a particular individual and documented as such
are in great demand, yet few people are knowledgeable enough and
respected as authorities in this field. Hansen & Hansen is
one of a very few.
Determining the authenticity and value requires an experienced
authority. We maintain a library of over 2,000 volumes of military
records and have access to millions of pieces of written material on
computer pertaining to American wars & world history.
This material, experience and "instinct" enables us to
authenticate a collectible, establish an increased value, which is
recognized without question by the collecting fraternity.
Manuscripts, Images and Autographs
A remarkable change is occurring
in this, one of the world's oldest and most respected pastimes. As this hobby attracts
greater and greater attention... prices are rising at rates exceeding anything
ever experienced before.
But why do autographs, photography and manuscripts consistently
post gains that make stock brokers green with envy?
Why do the prices increase?
Because they are not volatile.
While they seldom double in value in a year,
they have consistently outperformed stocks, bonds and
other more traditional paper investments for years.
"The rare document field sees prices spiral
as a new breed of collector signs on", quotes the Wall Street Journal. That
new "breed" is the investor such as you.
Hansen & Hansen is respected as an authority in its field and
would welcome an opportunity to manage a lucrative portfolio for you.
Hansen & Hansen -
Investment Management Services
While offering viable alternatives
to acquiring historical items of American history, we actively purchase historical
artifacts - weapons, militaria, documents, photos, etc., single items or large
collections. We perform historical research, acquisitions and placement of objects
for museums, and de-accession for institutions and historical societies is another of our
specialty.
We maintain a gallery at 244 Old Post Road - Southport,
CT 06890. Located about 45 miles outside of New York City on Interstate 95 North Exit 19.
We conduct sales and offer auction services to dispose of collections. We constantly maintain
a large group of clients and investors nationwide from which we purchase
collectibles and place the same in a regular practice of asset management and
turnover of investment. We offer free appraisals for individuals and nonprofit institutions
who wish to sell and paid appraisals to those who require them for insurance purposes.
All inquiries are strictly confidential.
For more information please contact us toll FREE at 1-800-571-7337. We would
be pleased to discuss the advantages of investing through Hansen & Hansen
You may E-mail us at: tom@hansenguns.com or
write to Hansen & Hansen Arms & Antiquities - 244 Old Post Road - Southport,
CT 06890
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