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Old 04-28-2012, 12:13 AM   #1
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Default Why are ammo prices so high?

I started shooting a lot about 8 years ago. I shoot shotguns, handguns and rifles. The cost of ammunition has gone up roughly 65% since then. It's gone up so much that I need to reload to afford this sport.

I have a degree in economics but it's not my field today. I am trying to wrap my head around this question of supply and demand. Hers are a few scenarios I came up with.

1) People are shooting more than ever. Two wars. Manufacture can't keep up with demand. Prices go up.

2) The price of raw materials, fuel to transport them and cost of manufacture have gone up. Prices go up.

3) Industry decides that they make more money making less product. Prices go up. Manufacture prices stay the same. Profit!

The problem with 3, withholding supply, is that another upstart should step in.

So... What is it

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Old 04-28-2012, 12:45 AM   #2
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supply and demand also it being a election year has alot to do withit right now

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Old 04-28-2012, 02:57 AM   #3
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This transcends elections. Prices were climbing before Bush's second term and rose through his second. They only slightly rose with Obama.

Yes supply and demand is at work here but in what capacity?

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Old 04-28-2012, 03:56 AM   #4
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Shooting is becoming MUCH more popular. Perceived scarcity is encouraging hoarding. Thus, demand has increased by a much greater amount than even ownership has increased.

I think the more guns in the country, the better, so I do not begrudge the rising prices. If you take gold as an example, the higher the price, the more people want something. People are buying and shooting guns today that never would have before.

My father-in-law, for example, buys a box or two of ammo for each gun. I, on the other hand, buy a thousand rounds or two for each gun. I just think there are more and more of my kind than his these days. Prices will necessarily increase.

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Old 04-28-2012, 04:31 AM   #5
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For some ammunition, I would bet that the elevated price of copper these days has something to do with it also...

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Old 04-28-2012, 04:41 AM   #6
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It doesn't help that the government is printing more money, causing inflation. A dollar isn't worth a dollar anymore.

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Old 04-28-2012, 04:15 PM   #7
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It is not just ammo. The above stated reasons pretty much cover it: raw materials, transportation and printing money have done the job on all kinds of prices.

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Old 04-28-2012, 08:03 PM   #8
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Quote:
Originally Posted by sputnik1988 View Post
It doesn't help that the government is printing more money, causing inflation. A dollar isn't worth a dollar anymore.
The Dollar has not been worth a dollar since Nixon. You are 100% about inflation. Wait till you see food prices this summer.
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Old 04-29-2012, 12:42 AM   #9
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I remember when gas was under 25 cents a gallon and they pumped it, cleaned your windshield and checked your oil. My first house cost $10,700. The payment was $85 a month including taxes and insurance which was what I was paying for an apartment. I was making about $6 an hour as an apprentice. 1966....

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Old 04-29-2012, 01:01 AM   #10
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1 & 2 pretty much covers it. Some ammo is only produced on a season basis and some caliber are imported from overseas and not made in the USA. Nothing is cheaper than it was just a few year ago.

Somethings may not have gone up percentage wise as much as others have but everything is more costly. Companies that mfg. ammo buy the raw materials months ahead so it takes awhile for those higher price to reach the market. Cost of transporting products from point A to B have also gone up especially those raw material that are imported from overseas.

China is sucking up about 28% of all the available copper on the current market,Europe 25% and the US 14% while the demand is high production for the four leading open mine copper producers has dropped 12% mainly due to lower quality ore.

The cost of Copper alone has risen dramatically over the past couple year and the forecast is that 60% of the open Copper mines will be depleted by 2020 forcing the search for underground mines and driving the price up higher.

I cut my cost by buying powder and primer in bulk,casting my own bullets for both rifles and handguns and shooting more low velocity and midrange loads which also make my brass last much longer in some case as long as 20+ reloads.

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