I'm betting ammo prices will drop

[Saab1911]

With Iraq war becoming quiescent to the point that the soldiers are starting
to get bored and want to be transferred to the "real" war in Afghanistan,
ammo prices will likely come back down to sane levels. That is if the U.S.
is not foolish to start anything with Iran or with Russia

Is the Iraq war the reason why we're currently paying through the nose
for ammo?

Cheers,

Jae

 

[gb_in_ga]

That'll help some, but it isn't the only factor in the high price of ammo. You still have the Chinese who are undergoing a big arms stockpiling push, and then there's the drain on resources that the newer automotive technologies are having. These are having the effect of driving up the price of metals associated with ammunition manufacture -- Chinese ammo, automotive batteries (especially the hybrids and plug in electrics), etc. Add to that the increase in the price of petroleum which is needed to create the powder and primers, which isn't going down a whole lot any time soon. Oh, and transportation. Mainly, though, it is the metals.

One thing that I suspect will counteract the drop in demand for ammo that the wind-down in Iraq brings is an increase in demand that the newly belligerent Russia brings -- not only itself, but in the surrounding countries who are almost certainly going to be scrambling for arms and ammo right about now. I know that I would be doing it if I were them.

 

[Saab1911]

I believe that the Chinese economy will tank pretty soon. Companies are
starting to move out of China because labor is getting too expensive.

We've had a confluence of factors which have made ammo prices triple
in the last few years But, both gas and ammo prices will come back
down as sanity reasserts itself.

 

[obxned]

Don't hold your breath waiting for lower ammo prices. Be thankful if we get a longer wait between increases. The price of metals and the amount of ammo used in Iraq may decrease, but your dollar will not be worth the paper it is printed on if congress continues 'helping' the economy.

 

[HowardCohodas]

The key to understanding the price of ammo is understanding the price of commodities in general and the primary commodities used in cartridge making, lead, zinc and copper. Besides supply and demand forces, the price of commodities in the US relates strongly to the price of the dollar. If you want a hint of what will happen to the price of ammo, watch the futures price of oil. Why oil? Because it is constantly reported in the media so it easy to follow. Also, it is strongly linked to world economy and indicates the demand for other commodities as well.

 

[Tom2]

Maybe you will start to see less backlogs and shortages of some kinds of ammo. Maybe even some moderate price drops. But do you think that dealers who are getting along charging these big fat prices are gonna roll over and pass big savings on to you right away, when they can have higher profit margins? They will try to keep selling at the high prices as much as possible to keep making more money. That is another reality.

 

[JWT]

I'd like to see ammo prices drop as much as anyone else but the demand for lead and copper is not just being driven by the 'war needs' it's also largely a factor of supply and demand driven by the economies in China and India among other things.

Doubt that we'll see decreasing prices for ammo in the foreseeable future.

 

[Brian Pfleuger]

I think the price of metal is the major factor. It is dropping like a stone so ammo should follow.
No doubt at a slower pace.

 

[HowardCohodas]

Maybe you will start to see less backlogs and shortages of some kinds of ammo. Maybe even some moderate price drops. But do you think that dealers who are getting along charging these big fat prices are gonna roll over and pass big savings on to you right away, when they can have higher profit margins? They will try to keep selling at the high prices as much as possible to keep making more money. That is another reality.

Even a cartel has difficulty maintaining discipline sufficient to maintain high prices when one or more participants seeks an advantage of more total income by increasing quantity sold at the expense of price concessions. Ammo retailers are generally free spirited capitalists and would be the last to pass on taking advantage of a reduction in their costs by adjusting their prices. Walmart has become the worlds largest retailer by fanatically pursuing this approach. You would be wise not to discount these real economic forces.

 

[Double J]

Ammo Prices

--Loading your own,starting with all new components don't help save money either. Ready to make a new batch of .223 and I saw it would cost me $515.00 to make 1000 rounds.
--Guess them dirty Wolf rounds is what I'll be shooting. And they're not cheap either. I buy foreign because American either don't make it or the price is ridiculous