A Pre-1899 Gun Investing Rationale

Introductory Note: I’d be remiss if I failed to mention that I have a considerable bias on this topic.  I own and operate Elk Creek Company — a side business selling pre-1899 guns and percussion black powder replicas. I’ve been dabbling in antique guns for more than 35 years. (Back in the 1990s, I operated Clearwater Trading Company, from my home near Orofino, Idaho.)  Despite my bias, I believe that what I’m recommending in this essay represents some ground truth. – JWR

Mark Twain was famous for once writing: “Buy land. Because they aren’t making it any more of it.”  This saying was later re-phrased quite similarly and popularized by the witty social commentator Will Rogers.

I’m writing today to encourage an analogous investment:  Antique guns.  Because the December 31, 1898 “antique” threshold was arbitrarily established by the U.S. Congress in 1968, they created not just a fixed commodity, but what in actuality is a dwindling commodity.  Eventually, guns wear out from shooting, or gradually succumb to the rusting ravages of dampness, if they are not properly stored. Meanwhile, modern guns continue to be produced in large numbers. This factor alone greatly increases the relative scarcity of Pre-1899 antiques, with each passing year.

Consider this:  In late 1968, a legally “antique” gun was at least 70 years old, and these represented perhaps 5% of the guns in private collections.  But today, a legally “antique” gun is at least 126 years old, and they represent less than 1% of the guns in private collections. So they are a dwindling commodity, indeed!

Pre-1899 guns in the U.S. (and pre-1898 guns in Canada) provide a special opportunity to acquire some guns without a “paper trail” — even in states that have banned private party sales of modern guns through what they glowingly refer to as “universal background checks.” In essence, these states have banned firearms ownership privacy. But thankfully, pre-1899 guns continue to be exempt from those requirements in most states. The laws on antique guns vary slightly between states. So be sure to research your local and state laws. But, again, most states fully exempt antique guns from any paperwork.

My FAQ on pre-1899 guns has become a standard reference.  Here are some excerpts from that FAQ’s  question & answer (Q&A) section:

Q:  What constitutes “antique” under U.S. law?

A: Although your State and local laws may vary, any firearm with a frame or receiver that actually made before Jan. 1, 1899 is legally “antique” and not considered a “firearm” under Federal law. This refers to the actual date of manufacture of the receiver/frame, not just the model year or patent date marked. (For example, only low serial number Winchester Model 1894 lever actions are actually antique.)  No FFL is required to buy or sell antiques across state lines. They are in the same legal category as a muzzle-loading replica. I regularly ship them right to people’s doorstep via UPS, with no “paper trail.” Think of it as the last bastion of gun ownership and transfer privacy.


Q:  I saw a post that said that pre-1899s are considered modern “firearms” if they are chambered to fire ammunition that is available off-the-shelf. Is this correct?

That is absolutely incorrect.  ANY gun manufactured before Jan. 1, 1899 (other than a machinegun or other NFA category, such as a short-barreled gun) is NOT controlled in any way by Federal law.  There is NO Federal requirement for sales of these guns to be handled by Federally licensed dealers. They may be freely bought and sold across State lines by private parties, regardless of what cartridge they are chambered in. (However, State or local laws vary.)


Q:  Does sporterizing or re-chambering an antique end its exemption?

A:  Unlike “Curio and Relic” category modern guns, sporterizing, re-barreling, or re-chambering an antique gun does NOT affect its legal status. Thus, I can sell folks Mauser sporters that have been converted to modern cartridges (like .308 Winchester!), without having to go through the “FFL to FFL” hassle. I have a BATF letter confirming this, which makes a useful reference.  Here, available for free download in JPEG format is my query letter to the BATF:  Page 1  Page 2. And here is the BATF’s reply:  Page 3  Page 4.


Q: Is a Form 6 import license required for importation of a pre-1899 gun by an individual?

A:  No Form 6 is required. This is because pre-1899 guns are outside of Federal jurisdiction.


Q: Would an antique serial number range gun be worth more than an otherwise identical gun made just a few years later?

A:  Yes! Pre-1899 production guns now bring a 30% to 200% premium over identical condition guns made AFTER 1898.  For example, in 2002, I sold a 1898-dated M1896 Swedish Mauser rifle that was dated 1898 on a www.AuctionArms.com online auction for $770. This was when most otherwise identical Swedish Mausers were selling for around $250!  Based on market trends, I expect the pre-1899 premium to increase considerably in the next few years. (Perhaps even tripling or quadrupling in value if modern (post-1898) guns become subject to registration or additional transfer controls.) Many of my customers are commenting that they previously had no interest in “antique” guns, but now want one or more because they are paranoid about additional gun laws. For the time being at least, pre-1899 are completely EXEMPT from all federal laws.  Presumably, this would also mean that they would be exempt from registration if they ever have nationwide gun registration….   Think about the possibilities.


Q: What would you consider a basic battery of pre-1899 guns for a typical shooter that wants to diversify and “hedge his bets” by buying some pre-1899s for his family?

A:  I’d recommend buying the following pre-1899 production guns:

* Two big bore S&W top break double action revolvers (.44-40 or .44 Russian, but get both in the same caliber.)

* One Winchester Model 1897 in 12 gauge.

* One pre-1899 .22 Rifle.  (Winchester Model 1890 pump or Winchester Low Wall single shot rifles are ideal.)

* Two Model 1893/94/95/96 Mauser bolt action rifles. (6.5 x 55, 7×57, or 8×57, but get both in the same caliber.)

If you have a big budget, then you should also invest in a few additional pre-1899 Colts and Winchesters that are chambered for commonly available factory-made ammunition.


Q: What about someone who is on a very tight budget?  What pre-1899s are available?

A:  I’d recommend a Spanish or Chilean Model 1893/1895 (7 x57), or a Turkish Model 1893 (8 x57).  Both can be had for under $200 in original condition, or often for under $125 if sporterized. Most Iver Johnson .38 S&W top break revolvers are also still a relative bargain at $120 to $250 each.

 

Q: But what if I find a pre-1899 gun at a gun shop that was mistakenly logged into the dealer’s “bound book” of post-1899 firearms?  Won’t I have to fill out a Form 4473
(yellow form)?

A:  No. All the dealer has to do is log the gun out as:  “Inadvertent entry. Pre-1899 manufactured receiver [or frame].  No FFL required.” If the dealer gives you any grief and insists on you filling out the yellow form, a call to any BATFE branch office will confirm this. In fact, according to the law, dealers are NOT ALLOWED to log pre-1899s into their books at all, since they are outside of Federal jurisdiction, and the “bound book” is their record book of guns that are within Federal nexus.  (It makes about as much sense as a FFL holder logging a pellet rifle into his bound book.)

 

Q: Will the prices of pre-1899s continue to go up?

A:  Yes, and the rate of increase is likely to accelerate!  Here are some examples: In 1997, .44-40 S&W double action top break revolvers were selling for $400 to $800.  They now sell for $900 to $2,000.   In 1997, .38 S&W double action top break revolvers were selling for $50 to $150.  They now sell for $320 to $900. In 1997, .44-40 Merwin Hulbert revolvers were selling for $300 to $1,000.  They now sell for $900 to $4,000. Meanwhile, many pre-1899 Colts have been bid up to unaffordable–almost astronomical–prices.  After  Nov. 30, 1998 the permanent Brady Law rules went into effect. On that date all sales of *post-1898* guns–long guns and handguns–came under the federal control of “national instant background checks.” Subsequently, there has been a much bigger interest in guns that are Federally exempt and that can be bought via anonymous mail order or at gun shows with no “paper trail”!


Q: Are pre-1899s included in the Brady II background check law?

A:  No. They are exempt.

 

Q: How does the law on pre-1899 antiques and replicas actually read?

A: From the Gun Control Act of 1968 (Which modified Title 18, U.S. Code):

18 USC 921 (a)(16).

(A) any firearm (including any firearm with a matchlock, flintlock,
percussion cap, or similar type of ignition system) manufactured in or
before 1898;
  and
(B) any replica of any firearm described in subparagraph (A) if such replica —
(i) is not designed or redesigned for using rimfire or conventional centerfire fixed ammunition, or
(ii) uses rimfire or conventional centerfire fixed ammunition which is no longer manufactured
in the United States and which is not readily available in the ordinary channels of commercial
trade.

Q:  What are the primary advantages of investing in pre-1899 guns rather than modern
(post-1898) guns, or replicas?

A:  They are not considered “firearms” under Federal law.  Thus they will most likely be exempt from any new Federal gun registration law or any new restrictions on transfers between private (unlicensed) individuals. (Sadly, registration looks inevitable within a few years unless there is a massive swing of the pendulum back toward a constitutional republic.)

I can literally send you a pre-1899 handgun or rifle right to your doorstep without a lick of paperwork. (Unless you live in New York City or D.C., for example)   The joys of free commerce!

The Dec. 31, 1898 cut-off date has been in existence, (unchanged), since 1968.  Thus, the pool of available pre-1899s continues to shrink with each passing year, and because of this, those 126+ year old guns A.) Look more and more antique/obsolete to lawmakers–i.e. not worth bothering about.
and, B.) Grow more valuable with every passing year.  Pre-1899 guns already bring a considerable premium. The bottom line is that people are willing to pay more for privacy!

In essence, with pre-1899s you are buying both privacy (the lack of a “paper trail” and probable exemption from future registration) plus they are a great investment. Why buy a replica (such as the Trapdoor Springfield, Winchester, and Schofield top break revolver replicas currently on the market–and requiring the Federal “Yellow” Form 4473), when you can buy the real thing (with far greater long-term investment value, and NO paperwork) for just a little bit more money?


Q:  I know of a Class 01 FFL who was told by the BATFE to stop building pre-1899 Mauser custom rifles because they then became “modern”, manufactured on that date [of modification], not when the receiver was manufactured. Is that true?

A: No, the license holder was misinformed.  I suspect that he heard a personal interpretation of the law from a  BATFE field agent. The letter that I posted came directly from the ATF Firearms Branch and is hence definitive and authoritative. In essence, here in he U.S., either a receiver was made before 1898 or it wasn’t. Pre-1899 manufactured rifles, pistol, and shotguns–except for machineguns and short-barreled rifles and shotguns–are outside of Federal jurisdiction. Legally, the receiver is what constitutes the gun, and anything that someone does to modify it–aside for turning it into a full auto or attaching a short barrel in violation of GCA-’68–cannot bring it into Federal jurisdiction. Please read the letter again. (See the scanned pages.) The wording from the ATF Firearms Branch is quite clear: “The fact that the firearm has been re-barreled, re-chambered, re-blued, or sporterized would have no bearing on its [Federally exempt] classification.” Most likely the source of the confusion for ATF field agents is their vague recollection of the U.S. Curio and Relic (C&R) law, that states that if a C&R gun is substantially altered, then it loses its C&R status. But that is an entirely different law, pertaining to modern (post-1898) listed C&R guns, which are inside ATF jurisdiction. It is also noteworthy that the ATF letter on pre-1899s specifically addressed Model 1893 Turkish Mausers, that had their receivers re-heat treated and were then rebarreled for higher pressure 8×57 cartridges, in the1930s. These even had their receivers prominently stamped with 1930s dates at the time that they were re-arsenalized. But even these rifles are still considered legally “antique” and outside Federal jurisdiction!

[End of excerpt]

Importantly, my FAQ on pre-1899 guns includes many serial number “breaks” for determining if a particular gun was made in or before 1898. So I recommend printing out a hard copy of the FAQ to carry with you, when attending gun shows.

The bottom line is that pre-1899 antique guns are a scarce, dwindling commodity. They can only go up in value. And if you buy ones that are chambered for cartridges and shotshells that are still factory-made, then they can still be quite practical for hunting, target shooting, and even self-defense. Choose wisely.

I hope that my readers take this pre-1899 antique gun investing advice seriously.

Presently, many folks are thinking that because they hesitated, they have now “missed the boat” on investing in silver and gold.  (Gold just set another all-time high, this past week.) But you don’t have to feel that way about investing in Pre-1899 cartridge guns. The real gains are just beginning and will accelerate in the coming years.

Stack them deep! – JWR