What Stimulated the Gun and Ammo Market?

[JoeyB]

If you are curious, here is an economic approach to the topic. I found it to be pretty interesting. Completed with in-depth analysis and graphs!

I also wish that I got into the sport about 2 years ago when things seemed to be relatively cheap (compared to today's prices).

Enjoy

http://www.lewrockwell.com/orig10/mattis1.html

 

[BostonFJ40]

Great quote from the article...


"Having spoken to gun owners, gun dealers, gun show exhibitors, and other people in this industry, I find that the undercurrent of what people are beginning to say is, "Okay, I have what I need." For a gun owner of modest means, that means an AR-15, 10 magazines, a quality handgun, 10 magazines, and a few thousand rounds of ammo for each."

 

[terraformer]

I can't read that till tonight, but it is frickn' clear that the threat of an artificial supply shortage (aka; a ban or unreasonable ammo requirements like microstamping and serialization) is what is driving things. The threat of a ban, combined with high metals prices, clearly drove the demand curve way the hell to one side.

 

[JoeyB]

I can't read that till tonight, but it is frickn' clear that the threat of an artificial supply shortage (aka; a ban or unreasonable ammo requirements like microstamping and serialization) is what is driving things. The threat of a ban, combined with high metals prices, clearly drove the supply curve way the hell to one side.

True. Also, the wars in the Middle East play a factor as well due to the military contracts ammo companies have. Ammo goes there first.

 

[Tim111]

Great read...

 

[MetalgodZ]

Great read...

Agreed. Thanks, Joey B.

 

[Zappa]

Interesting. I didn't know that Remington and Bushmaster were both owned by Ceberus. I don't like the sound of that. They're the guys that own Chrysler and they're driving that right into the ground.......

 

[Hiltonizer]

Interesting. I didn't know that Remington and Bushmaster were both owned by Ceberus. I don't like the sound of that. They're the guys that own Chrysler and they're driving that right into the ground.......

Cerberus also owns DPMS... but they haven't been so successful as a PE firm by running businesses into the ground... Chrysler is more the exception than the rule for them.

More relevant to the topic, there was an article posted recently about LE agencies expanding there arsenals, and the resulting use of ammo in training such expansion has been a major cause. All good points.

 

[freedom2012]

A couple more points I think some were touched on in the article, but not highlighted:

I think many gun owners are concerned about the inevitable increase in general crime as the economy sinks even lower. In addition, the possibility of serious civil unrest in more populated areas that is brewing fear in gun owners as well as LE (this was mentioned). Finally, there are some groups and individuals out there, no doubt, who may be 'preparing' for a potential armed revolution.

Combined with all the points in the article, we see the sinking ammo supply. The good news, many gun owners are as a result, armed and supplied.

 

[Tooth]

how long?

I have been addicted to this site since september, and it seems there are always posts of people getting their ltc, or trying. How long has this been the case? Has this been the norm for years, or are there as many people that grew brains or balls at the same time? I took a course in 94, but never got the license. This is something I have regretted since I realized how many things I would have been able to get that I now want.

 

[Marcus in the Darkus]

I was going to post that article, but Joey beat me to it. It is well written, well researched, and I agree with the author's conclusions - barring an iminent gun or ammo ban, prices will be forced lower due to cheaper commodity prices, rising inventories and satiation of those who are stockpiling, and a currently non-sustainable rate at which gun buyers and owners are currently stockpiling.

I know I'm running low on funds, and with things starting to slow down at work, I'm much more hesitant to impulsively buy more guns or ammo than I used to be. I'm making very deliberate buying decisions, and one of those decisions is to accumulate ammo slowly, with the expectation that it will be cheaper in a few months.

 

[Brin747]

So, we had the dot com bubble, the housing bubble, the oil bubble, and now the gun bubble?

 

[Major Blood]

Interesting. I didn't know that Remington and Bushmaster were both owned by Ceberus. I don't like the sound of that. They're the guys that own Chrysler and they're driving that right into the ground.......

Bushmaster, Remington and DPMS all make a quality product that compares favorably with their competition...Chrysler, with the exception of the 300 sedan, not so much.

 

[packingungal]

Yes, it was a good read. No surprises for me, however.

 

[JoeyB]

I know I'm running low on funds, and with things starting to slow down at work, I'm much more hesitant to impulsively buy more guns or ammo than I used to be. I'm making very deliberate buying decisions, and one of those decisions is to accumulate ammo slowly, with the expectation that it will be cheaper in a few months.

I hear that. Right now I am staying away from buying new guns and just concentrating on picking up ammo. I could add more guns to my small collection but I just can't afford it!

It would be nice to see ammo prices drop, that's for sure.

 

[OLAK]

Very interesting!

 

[mikem317]

LewRockwell.com had not one, not two, but three gun-related articles that day.

 

[dsm]

Interesting. I didn't know that Remington and Bushmaster were both owned by Ceberus. I don't like the sound of that. They're the guys that own Chrysler and they're driving that right into the ground.......

Chrysler was already 3/4 of the way into the ground when they bought it from Daimler.

 

[calsdad]

Great quote from the article...


"Having spoken to gun owners, gun dealers, gun show exhibitors, and other people in this industry, I find that the undercurrent of what people are beginning to say is, "Okay, I have what I need." For a gun owner of modest means, that means an AR-15, 10 magazines, a quality handgun, 10 magazines, and a few thousand rounds of ammo for each."

That quote in and of itself was very interesting. It shows that people have been paying attention to the rifle/shotgun/pistol recommendations that you typically see given on firearms forums and in books like Boston's Gun Bible.

It shows that the people buying are more than just hacks who say " I have to go out and buy a gun" (meaning any gun).

 

[calsdad]

Here are the other two gun related articles referenced by Mikem from that day.


Two Checks on Tyranny:
http://www.lewrockwell.com/hornberger/hornberger156.html

The purpose of the Bill of Rights was twofold: first, to ensure that certain fundamental rights were protected from federal infringement and, second, to ensure that the American people were expressly guaranteed certain procedural rights in federal criminal prosecutions. While all of the rights and guarantees enumerated in the Bill of Rights – as well as those that were not enumerated – are critically important to a free society, it is worth noting that two rights – one fundamental and one procedural – are intended to provide the citizenry with a means to resist federal tyranny should such ever befall our land.

These two rights are the right to keep and bear arms and the right to trial by jury. The gun right is found in the Second Amendment and the jury right is contained in the Sixth Amendment.

We begin with the basic underlying assumption of the Bill of the Rights, which is that the greatest threat to the freedom and well-being of the American people is the federal government. Not terrorists. Not communists. Not Muslims. Not drug dealers. Not immigrants. The federal government is the greatest threat to the American people.

After all, it doesn’t take a rocket scientist to figure out whom the crafters were addressing with the Bill of Rights. They were confronting the president and the Congress, along with everyone else in the executive and legislative branches. The reason that the First Amendment, for example, expressly names Congress is simple: the crafters of the First Amendment understood that in the absence of express protection, members of Congress would do what government officials do in other lands – punish citizens for criticizing government officials.

The reason for expressly prohibiting government officials from making gun ownership illegal and for guaranteeing trial by jury was to ensure that the American people could resist, violently or peacefully, the imposition of tyranny by the president, the Congress, or both. Implicit in protecting the exercise of such rights was the assumption that tyranny could conceivably come to the United States.

Tyranny and gun control

There are those who argue that the right to keep and bear arms has to do with hunting and self-defense against robbers and burglars. While guns are an important part of those activities, they are not the primary reason the Second Amendment was enshrined in the Bill of Rights. The main reason for the Second Amendment is one that government officials are usually uncomfortable talking about: the right and the ability of the citizenry to forcibly resist government officials, including those in the FBI, the CIA, the military, and the police, who are carrying out tyrannical orders of their superiors.

This important rationale for the right to keep and bear arms – the ability to resist tyranny – was pointed out by the U.S. Supreme Court in the recent Washington, D.C., gun-ban case, District of Columbia v. Heller. The Court stated,

And the other article,

Possibly Our Only Chance
http://www.lewrockwell.com/gaddy/gaddy50.html

While I have not changed my beliefs on the illegal, immoral policies and actions of the state, somehow, in the past few months, I have, in the opinion of some readers, changed political affiliations. When I was writing of the illegal wars of the warfare/welfare state, I was often asked to leave the country, called a traitor, a coward, and accused of being a commie liberal. Now, since I have attacked the illegal, immoral actions of the welfare/warfare Obama administration regarding the Second Amendment, I am accused of being a fascist and questioned as to why I supported Bush and his torture of "enemy combatants," and the Patriot Act.

To many Americans, calling the state on its many crimes when their chosen candidate/party is in power automatically places one in the enemy camp. Freedom, liberty and the Constitution have been swept away in the flood of party politics. Nowhere is the folly of allowing party politics to frame the debate on freedom better illustrated than in Lew Rockwell’s newest, The Left, The Right, and the State.

The belief that an answer to the problems now facing this country can/will be found in Washington, D.C. is totally insane. Washington is the home of criminals, those who rob with a gun, and those who rob with unconstitutional laws and regulations. Begging/lobbying either to change their ways is madness. At least, the criminal who robs with a gun does not claim to be a public servant and doing so "for the children."

It is my belief, our last chance at subverting the criminality occurring within the federal apparatus known as the federal government is the reclaiming of the rights of the people and the repudiation of overreaching federal tyranny as defined in the Ninth and Tenth Amendments to the Constitution. This movement, which is now gaining a foothold in many states, is referred to as the State Sovereignty Movement.

 

[MassBites]

Interesting. I didn't know that Remington and Bushmaster were both owned by Ceberus. I don't like the sound of that. They're the guys that own Chrysler and they're driving that right into the ground.......

They also acquired DPMS back in 2007.

 

[Rob Boudrie]

I suspected the author was one of us when he stated that a gun owner of modest means would need an AR15 with 10 mags; a pistol with 10 mags; and several thousand rounds of ammo for each. The mention he was an active IPSC competitor (he is, I checked) explained why he came up with those numbers for "modest means" shooters.