Look at these charts and tell me why ammo is going up in price...

[danielocean03]

Me too. I've got 3-400# of wheel weights.

I'm sure you know the difference, but just be warned, look closely as you sort through those as some of those are likely not Lead, some manufacturers are using different metals, Zinc in particular has become quite popular with the Europeans.

 

[Keith_Indy]

Didn't find much 9mm yesterday at Gander Mtn in Castleton, but there were plenty of components for reloading, which I bought.

So, I'll be rolling my own for a while for practice. And collecting as much brass as I can lay my hands on.

With regard to the commodities market, the price of brass is likely to get low because of the recent decision to 'de-mil' used brass casing by the DOD.

 

[antsi]

One word....... GREED!!!

So, I guess when you buy something, and the market price later goes way up, you're happy to sell it for the price you originally paid. Because you're not greedy.

And when you go out to buy something for which the market price has just fallen dramatically, you're happy to pay the old, higher price. Because you're not greedy.

What we have here is the normal functioning of a free market. Everyone is trying to get the best deal they can. If you want to decry that as greed, well, the best I can say is that it is a lot better than the alternative system.

 

[muncie21]

Guys, I'm not 100% sure the 'free market' or 'supply & demand' descriptions can explain what we are seeing.

Consider this?

• Raw materials significantly decreasing in price(~75% Year of year)
• Energy decreasing (slightly), oil is ~60% lower than last summer
• Ammo manufacturers laying off workers due to no demand/orders

How can one explain what we are seeing, considering the above?

 

[indykid]

Laws of supply and demand. Between panic, greed and obamamania, ammo will keep going up in price.

 

[Disposable Heart]

So, I guess when you buy something, and the market price later goes way up, you're happy to sell it for the price you originally paid. Because you're not greedy.

And when you go out to buy something for which the market price has just fallen dramatically, you're happy to pay the old, higher price. Because you're not greedy.

What we have here is the normal functioning of a free market. Everyone is trying to get the best deal they can. If you want to decry that as greed, well, the best I can say is that it is a lot better than the alternative system.

True point for lots of folks, believe me.

Unfortunately, I am one that would sell it at the price I paid for it. Sucker, yes. Profiteer due to political changes? No.

As for the Zinc thing!!! I cant remember, but if you drop it on concrete and it rings, I think it's zinc. Rather simplistic test but a good one. Someone needs to check to see what one rings when it's dropped!

 

[hornadylnl]

Okay, here's an example.

You own a gas station and the gas truck comes in to fill your underground tank. Your price is $2.00 a gallon. You buy 1000 gallons. You charge $2.10 (I've actually talked to a station owner and his markup was 8-10 cents). You have sold 500 gallons and the oil price drops. Everywhere else drops their gas to $1.90 a gallon. Do you drop your price to sell it at a loss or do you hold it and not sell any? The same scenario works in reverse when he has 500 gallon left and the price goes up.

Anyone who complains about the gouging ought to sell me their stocks that have went up in value to me for just pennies more than they paid for it, regardless how much the value of the stock has went up.

 

[nighthawk80]

/\...+1

 

[SavageEagle]

I'm a panic buyer. I'm buying up ammo left and right as much as I can. I built up an AR and have parts for a new one minus some things like the BCG, barrel, and LPK.

You're damn right I'm afraid of ammo import bans, AWB, Martial Law, Gun Confiscations. You people damn sure are too. You all have been buying ammo. You all have been buying guns. Don't sit here and blame people for stuff. You've been hording for years! I've just started. Albeit a bad time to start, but better late than never.

As far as Gougeing, I built a lower for $180. LPK, Buttstock, and the lower. Got it built, didn't think I'd have the money to finish it, so I sold it for a Saiga 20ga. Those are like a $500 shotgun. I traded that for a Marlin Levergun in .30-30. Those run about 350-375 something like that.

Was I being greedy? You bet your butt I was! I didn't think I could build an AR so I tried to get the best deal I could get and got my favorite gun from the deal. But even though it was greed, I wasn't gouging. I was going off what the market price was. Here. Let me explain it this way.....

You buy a 1969 Camaro SS for $7k in 1969. You keep it in excellent condition and low miles until 2009 and decide it's time to go sale it due to having the car of your dreams and no more room... whatever your reason may be. (I'd never sell a 69 SS, but you never know) So, are you going to sell it for $7k or the $60k that it's acutally worth?

The same can be applied to ANYTHING where price and value goes up. Or down.

It's free market. And Greed. Money beyond necessity is greed.

 

[jsn_mooney]

Well Said Savage Eagle +1

 

[mason1977]

I didn't read though all the post, but saying that material prices increasing, is driving up price of ammo I don't think is completely correct. I own a small manufacturing facility and purchase a 1/4 million dollars worth of brass, copper, steel and aluminum a year...

have prices increased....yes, in early 2008 prices increased by a very small amount. But, I will also say, with the current economic situation I have seen my material suppliers drop there prices drastically in an effort to secure a sale.

 

[muncie21]

I didn't read though all the post, but saying that material prices increasing, is driving up price of ammo I don't think is completely correct. I own a small manufacturing facility and purchase a 1/4 million dollars worth of brass, copper, steel and aluminum a year...

have prices increased....yes, in early 2008 prices increased by a very small amount. But, I will also say, with the current economic situation I have seen my material suppliers drop there prices drastically in an effort to secure a sale.

As the owner of a manufacturing company...if your price of raw materials is going down, what would make your COGS go up? Just trying to paint a perspective of the ammo companies.

 

[mason1977]

As the owner of a manufacturing company...if your price of raw materials is going down, what would make your COGS go up? Just trying to paint a perspective of the ammo companies.

The only thing that has really affected me is the cost of fuel, natural gas for heat and specifically surcharges in shipping, both inbound and outbound. For me, outbound freight is passed onto the customer, while inbound I classify as a cost of goods sold, which could drive the price up.
Throughout the winter, I typically see a heating cost of about $0.14 per square foot....and that adds up fast. Two years ago it was closer to $0.06

But in retrospect, neither is really substantial when compared to the amount of revenue they produce. They have not caused me to raise rates.

Everything else has stayed the same for my industry;Labor, Insurance, Taxes, Professional fees, Advertising....all pretty much unchanged.

The only thing I can think of that might possibly affect prices would be interest rates, which from what I'm seeing, commercial financing is sorta screwed up right now.