A gold-plated AK-47 assault rifle studded with diamonds was seized during a raid on a ranch reportedly owned by drug traffickers in Honduras.
Police said the rifle has an exclusive design and a fine carving, and could be worth at least $50,000.
An engraving on the weapon links it to a local drug gang that is allegedly connected to Mexico's Zetas cartel, they said.
Police also found over 30 other weapons, bullet-proof vests and 11 cars at the ranch, about 300 km from the capital Tegucigalpa.
Honduras, which has one of the highest per capita murder rates in the world, is a major conduit of cocaine-smuggling from South America to the US.