A buddy of mine bought over $5000 of ammo because of impending shortage

Question

A buddy of mine who is a licenced gun dealer and also has an explosives licence recently purchased over $5000 worth of various ammo for his guns,rifles,machine guns,etc.

Is he just being paranoid or is there an impending munitions shortage?

Answer 1

Have you seen the price of ammo lately?

He is going to double his investment in less than 2 years..... He will quadruple it if Obama wins the election....

Answer 2

either way, good friend to have when the militia forms.

Answer 3

He may also just be stocking up his inventory of sale items.

Answer 4

May be a very wise move. I have my own little stockpile of ammo that by quick calculation has tripled in value over the past several years.

Besides, he's a dealer, so for him it's really just inventory.

Spam cans of 8mm Muaser Yugo surplus used to be $29. I bought a whole pallet for less than that per can. They are now selling on auctions at $100. Chances of it going down are possible, but not too likely.

Answer 5

If your buddys a dealer then $5000 isnt a lot to put in stock.... If it was for his own personal stash I would say thats a little much.......  I dont think there is an "impending" shortage. Thats sounds a little paranoid to me..... I do realize there are some inflationary problems. It doesnt take a genius to figure out the total govt budget defecit will be 10 trillion dollars next year. Compound this with inflationary pressures on commoditys and the falling value of the US dollar.......  I'm not waiting for the world to end but do realize my money is losing value every week. I like to target shoot a lot so purchased about 4000 rounds of ammunition in various rifle and shotgun calibers..... That way if ammo prices skyrocket I will still be able to hunt and target shoot no matter what the costs.....

Answer 6

Ammunition has become very expensive as of late on the common market.   Last year there was a shortage of .223 rounds and such, not enough to stop shops from selling but but bulk sellers were sold out. My favorite shotgun shells are selling for almost 200% from what they were selling 4 years ago. However, I do consider spending such an excess sum at once to be silly unless he can easily part with that money.

I do consider stock piling ammunition to be a good idea, you should have at least a few hundred rounds for each firearm you own incase of unexpected 'developments.'

Answer 7

Probably just a little but remember, the price of everything is just going to go up.  So if you can afford to stockpile on ammo there's nothing wrong with that.  The .458 Winchester Magnum premium hunting ammo used to cost me between $65 to $100 for a box of twenty.  Last I checked it'd gone up to between $160 to $198 per box of twenty.  Don't you know I wish I'd stocked up before the price hike!

H

Answer 8

The stockpile may be a good idea.

If Obama and the Brady bunch get there way ammo will have a 500% sin tax applied to it. So if he bought it as a dealer then sells it to himself before that happens he can private party sell it and make a killing.

Answer 9

Smart guy. In case you didn't notice, there already is a shortage of military calibers, and what is available is many times more expensive than normal. This is due to several factors, including the fact that China is buying up metals at an unheard of rate, including lead, brass, copper etc, and the war in Irag and the action in Afgahanistan. The military is burning thru all ammo reserves. Because of short sighted liberal politicians, the military budget was slashed repeatedly to the point that they are short of ammo. Manufacturers are struggling just to meet their demands. Even if the war ended today, it could be well over a year or more before they are caught up on and have restocked the military's ammo needs. Plus, the devaluing of the U.S. dollar means it takes more money to buy things.

Shoot safe

Answer 10

Prices on ammo have gone up quite a bit over the past 18 months. Some of it is due to the war and the increasing prices of metals. Look at how much copper wire/pipe is selling for these days. People are stealing catalytic converters off of cars to get the metals out of them. Naturally the cost of cartridge components has followed suit. However there is also a lot of paranoia going on with the possibility of a democrat president. The NRA will always tell you that "Satan" is out there trying to steal your guns and bullets. Of course they say that, their very jobs depend on keeping you scared and sending them more money to fight the "evil"

The gun dealers are trying to cash in on the same fear mongering attitudes. Hurry up and by lots now before "name your favorite democrat"   passes laws to take everything away. I don't know how old everybody else is around here but I have been hearing the same tired scare tatics for over 20 years.  

Answer 11

better to have and not need than to need and not have. If anything, we should be buying that semi auto we've always wanted and stocking up on high cap mags. I get the feeling that the assault weapons ban will be coming back, depending on the president we pick.

Answer 12

Ammo has skyrocketed  in the past year

Sounds like a good investment, even if there is no shortage, against inflation

Answer 13

$5000 is way too much to blow on something so stupid. Just look how Y2K turned out after it was chalked to be "the end of the world" by so many people.