Thursday, April 16, 2009

What Happens When the Gun Bubble Bursts?

The WSJ reports that people are looking at gun buying as an investment, believing that they will soon be able to sell them back at a profit. Apparently you can double your investment in ammunition in a year. Does that sound familiar?

The only question is, what happens when the bubble bursts? Let's say you have a lot of your savings invested in firearms. Their price suddenly drops, so all of a sudden you have a bunch of guns lying around that you can't sell back to break even, and you're angry because, like any human, you're loss averse. What's the next step? Does it change if you don't believe in God? Good thing there's a positive correlation between handgun ownership and religious affiliation.