Interesting debate, there are a lot of well thought out comments... and a few that weren't.
I've read conflicting reports on whether the Liberals will compensate gun owners who have their handguns confiscated, but either way it's going to be a mess. On the one hand, gun owners are out of pocket for the value of their handguns. For most, I expect that's less than $1,000 so not a serious issue but it will sting. However I know a few people who have quite an extensive collection. For them, it's not only an investment, but an inheritance for their children. Losing that with the stroke of a Liberal pen is significant, akin to having a chunk of the average Joe's RRSP's or pension clawed back.
On the other hand, if the Liberals choose to compensate handgun owners, it'll be a huge expense. Not only will they have to pay fair market value for the handguns (or why bother at all) but each will have to have it's value independently assessed, compounding the cost. At the end of the day, the Liberals will have paid an exorbitant amount of our tax money to turn useful recreational items into scrap metal, while the criminals will be unaffected.
Worse, I believe this may actually increase handgun related mischief. As a registered handgun owner I know I have to be very cautions about safe storage, transport only to and from the range, etc. As pointed out, our society leaves people with the impression that handguns are "cool" and to be coveted, so a certain portion of the population will continue to seek out handguns, regardless of how they obtain one. Banning handguns will simply drive people underground to get them (as is already happening) meaning an increase in unregistered guns. What's the difference between a gun which has had it's serial number and ballistic characteristics registered vs. one which has not? Absolutely nothing, except the owner may feel a little less concerned about the manner in which it is stored and/or used in the latter case. An unregistered gun at a crime scene adds little evidence. A registered handgun, or even the bullets fired from one at a crime seen is (pun intended) a smoking gun leading straight back to the registered owner.
A ban will encourage misuse of handguns, instead of controlling it.
I wonder how many handguns will go missing? I certainly don't advocate it (why bother... there will be no place left to use it) but I suspect some will try, even if it's to keep it as a paperweight or inheritance for the next generation.
Edit: I wonder what the economic impact of a ban would be? Clearly gunsmiths, sporting goods stores and ranges will take a hit but I imagine the repercussions extend beyond the obvious. Having said that, handgun ownership is not exactly prolific, so the impact is likely to be overshadowed by the cost of implementing the ban.