Ammunition prices

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"Wideners" posted "...large price increases...April-May" last night on their website.

As astute people have noted, it seems that we've already heard months ago about commodity prices being up.

It must be an attempt to push sales in a very slow economic recovery (?).

Aren't there two AR-15 manufacturers/assemblers declaring bankruptcy, with so many unwanted guns bought during "The '08 Panic" dumped on the market?
 
Why have they stockpiled coffins?

Because coffin makers are generating artificial scarcity and letting demand grossly outrun supply causing the prices to go up? "Sticky prices" will keep the prices from ever coming back down to where they were previous to the "scarcity" so the only reasonable thing for the government to do is to buy them now before they cost too much or can no longer get them.

Sorry.... I couldn't resist :D

Comparing it to the Y2K bug seems a little out of place. Inflation alone is enough to cause prices to rise and that's exactly what's happening. The Y2K bug was a glitch that occurred as a result of lack of foresight and it only really happened once. The issues that we face with our current inflation rates, or devaluation of the currency, are systemic by nature and even if corrected tomorrow could still return later on because it is more along the lines of a "behavioral" problem. Until we learn to keep our over spending behavior in check, we're going to deal with this type stuff.

Unfortunately I am of the opinion that ammo dealers will capitalize on this type stuff creating a scarcity that would not have otherwise existed. If we had all followed Walkalong's advise prior to this and had been "hoarding" or "preparing", whichever you prefer, I prefer "hedge", we'd all be able to ride this out and they (the ammo dealers) would be forced to come back down on their prices.
 
"Oh its not chicken little.....Its American business. Wake up."


So here's a quick tutorial... DEMAND for ammunition is not static. While the dollar is falling, and while the price of oil is going up (which OPEC has agreed to offset by picking up production if necessary), DEMAND will have to rise or SUPPLY will have to fall (very general rule of economics)

However, with your vast understanding of American business, why don't you go ahead and predict what's going to happen in the future? Your immediate effect on futures may or may not be true as people panic about the middle east. Even though, as I mentioned OPEC has pledged to pick up production to stabilize the price of oil. So looking three-four months down the road where are we?

Surely, the price of ammo can only keep going up right? It has to... prices never come back down....

WAIT THEY WILL! Inevitably they must, it's only a natural reaction to the falling dollar and the falling amount of disposable income! I wish I could find the beating my head against the wall emoticon. So you raise prices... demand will eventually sink. Demand sinks and they either retract supply or lower prices. Luckily most businesses realize that if you lower your profit margin by lowering prices a little bit you will eventually end up selling more of the product and therefore earning a larger profit overall...

So:
Its American business. Wake up.

Thanks for the wake up Punisher's Armory... I hadn't had time to walk through a principles of Econ lesson for a couple years. Actually since last time people decided to panic over ammo prices...

However, yes in the short term ammo will be going up.
 
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And we would not be in nearly such a panic if only the tree huggers and pols. would let us drill, and produce, our own oil. Which is enough to provide the US, for the next 100 years, so i have heard from people in the industry.
 
http://www.metalprices.com/FreeSite/metals/cu/cu.asp

You can track metals prices here and yes, all the components used in what we consume are up.

People laugh when I talk about buying ammunition over time as dollar cost averaging, but it is.

You should have been loading up 6-12 months ago when prices came back down. Metals prices are volatile hence ammunition will track the raw materials cost.
 
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