Jim Cramer, host of CNBC's Mad Money, says there are no good or bad companies. There are only good and bad stocks.
In other words, stocks are overvalued or undervalued based on their potential to earn or lose money. They are all used merchandise, so don't let brand loyalty cloud your judgment.
The same principle applies to buying used firearms. Inexplicable spikes in demand sometimes drive their value, and the only way make a good investment is to follow the market.
Fjestad's Blue Book of Gun Values is the definitive resource on gun values. It lists almost every firearm ever made and lists their value according to the National Rifle Association's grading system based on the firearm's percentage of its original condition. Each listing shows the original manufacturer's suggested retail price, followed by estimated values for percentages in a descending scale.
If you trade or sell a firearm to a gun dealer, his price will usually be 10-20 percent below Blue Book, and he'll try to sell it at or slightly above Blue Book.
Blue Book is not always a reliable guide, though. If you want to know what a firearm is really worth, you have to follow sales on major online auction sites like Gunbroker.com.
Sometimes entire classes of firearms far exceed their Blue Book values. Firearms chambered in .41 Remington Magnum are prime examples. The most popular brands for .41 Mag. are the six iterations of the Smith & Wesson 657, 57 and 58, the Taurus Raging Bull, the Taurus Tracker, the Ruger Redhawk, Super Redhawk, Blackhawk and Super Blackhawk.
Except for the Blackhawk and Super Blackhawk, they almost always sell for several hundred dollars higher than Blue Book.
The only explanation I can think of is scarcity. All of the Taurus models are discontinued, as are all but one of the Smith & Wesson models. When one becomes available, it doesn't last long. The .41 Mag. is a niche market, but its enthusiasts are loyal to the cartridge and they collect them.
The Blackhawk and Super Blackhawk, in contrast, are still in production and are easily obtainable and are close book value.
About 10-12 years ago, Marlin made a short run of its 1894 carbine in .41 Mag. It cost about $500 at the time, and the Blue Book value is close to all 1894 variants. In reality, you can expect to pay about $2,000 if you can find one.
These rifles are popular among cowboy action shooters, but there is a simpler explanation for the spike. Any short-run chambering of a popular model always appreciates rapidly. For example, the .30-30 is the most popular chambering for the Marlin 336. There are millions of them, and they'll probably never have any real collector value.
The 336 in .35 Remington is less common and is worth slightly more. The same gun in .32 Winchester Special or .219 Zipper is uncommon and considerably more valuable.
The Marlin 1895 in 45-70 is still in production and is easily obtainable. It will not likely gain much value, but its offshoots in 375 Winchester, 356 Winchester and 348 Winchester are highly collectible and command substantially higher than Blue Book values.
In the shotgun world, the 16-gauge is similar to the .41 Magnum. It is not a particularly popular hunting gauge, and there is no competitive classification for it in the target shooting world. Nevertheless, they are hard to find and are expensive.
A sterling example of inexplicable value is the Remington Model 1100 Classic Field in 16-gauge. Remington made a short run of these guns 10-15 years ago, but they didn't sell well. The Blue Book value for this firearm in 100 percent condition is about $600, but the cheapest you'll find one online is about $900.
Likewise, prices for the Browning Sweet 16 are astronomical. The Belgian-made versions have brought premiums since 1976, when Browning shifted production to Japan. The Japanese Sweet 16s were traditionally undervalued even though they are probably better made than the Belgian guns. They are still cheaper than than a Belgian Sweet 16 in comparable condition, but not by much.
The Blue Book lists a standard value for all chamberings of the Ruger Model 77 bolt-action rifle, but that's only accurate for the most common chamberings of .30-06, .270 Win., 243 Win., etc. Models in 6.5x55 Swedish, 7x57, .284 Winchester, .358 Winchester and others sell for hundreds of dollars above Blue Book, especially the RS version with factory sights.
I can't explain it. I just watch the market and try to be ready when a bargain appears.
Sports on 04/09/2015