CFA Blue Book & Auction Comparable Analysis 2

Question 1

When using the Blue Book of Gun Values, which grading category describes a firearm that retains 80% of its original finish with only minor handling marks?

Accepted Answer

Very Good (VG)

Answer

Very Good (VG) in the Blue Book system denotes 80% or more original finish remaining with minor use marks but no major defects.

Question 2

An appraiser finds a Rock Island Auction result for a Colt Python but the example sold was a different barrel length than the subject firearm. What is the correct adjustment approach?

Accepted Answer

Apply a percentage premium or discount based on known market demand for each barrel length

Answer

Appraisers must adjust comparable sales for configuration differences such as barrel length, applying market-supported percentage adjustments to arrive at an accurate value.

Question 3

Which of the following auction houses is most recognized in the firearms industry as a primary source for high-value antique and collectible gun auction comparables?

Accepted Answer

Rock Island Auction Company

Answer

Rock Island Auction Company is the world's premier firearms auction house and is the most widely cited source for collectible and antique firearm comparable sales.

Question 4

A Blue Book value for a firearm lists a '100% NIB' price. What does NIB specifically mean in this context?

Accepted Answer

New In Box

Answer

NIB stands for New In Box, indicating an unfired firearm with all original packaging, papers, and accessories present.

Question 5

When reconciling multiple auction comparables that show a wide price range for the same model, an appraiser should:

Accepted Answer

Analyze each result for condition, configuration, and provenance differences before weighting the most relevant

Answer

Proper comparable analysis requires understanding why prices differ before weighting those most similar in condition and configuration to the subject.

CFA Practice Test

CFA Practice Test

CFA Blue Book & Auction Comparable Analysis 2