Cheaper Ammo coming?

[valleyguy]

It occurred to me that with commodity prices falling, emerging markets losing investment, the Chinese stock market in a nose-dive, and oil also below $100 a barrel again, possibly we'll see the return to cheaper ammo? Especially if the war winds down, might we see affordable and plentiful ammo again in all sizes? It would be even better if the ammo industry has been building capacity to keep up with demand, at which point we might see a glut if they don't readjust quickly enough to keep pace with current events.

[jandmtv]

One can dream!

[freakshow10mm]

Won't happen. End of story.

[Gator Monroe]

I'm ok with Blazer.22lr (Bulk box)on sale at Big 5 for $12.95 with cupon ...

[valleyguy]

Why not? Just curious as to why lower materials costs and lower demand would not convert to lower (relative prices) after compensating for inflation.

[MrSlippyFist]

The mining/minerals are always a half year behind the other commodities. The prices are falling, but availability and demand from other countries will keep the prices high here.

[MrSlippyFist]

Demand is not lower. Fewer mines opening up, and countries like China growing exponentially and demanding more raw goods.

[freakshow10mm]

Why not? Just curious as to why lower materials costs and lower demand would not convert to lower (relative prices) after compensating for inflation.

Profit. If the cost of the materials/manufacturing decreases, the company has one of two choices. Lower the price of the goods while keeping the same profit margin or keep the price the same, increasing the profit margin. Their call. Businesses are in business to make money.

[valleyguy]

I'm ok with Blazer.22lr (Bulk box)on sale at Big 5 for $12.95 with cupon ...

Where'd ya get that deal? I didn't see it at my Big-5 -- no fair!

[xrMike]

When I hear the phrase "cheap ammo," I immediately think of unicorns, bigfoots, and chupacabras.

[valleyguy]

That would imply there was never cheap ammo -- maybe you mean dinosaurs instead? At least they existed.

[MrSlippyFist]

Bread used to be 30 cents, a can of chewing tobacco 70 cents... markets change, blah blah blah. It's all relative.

[valleyguy]

All I know is that I see sliding prices for most commodities (even copper) for the past 6 months ( http://zinc-chart.seesaa.net/ ), and China's economy is headed for a freefall as our credit crunch gets worse and we stop buying all their stuff. Seems to me glut + lower demand = lower prices. Maybe not 2001 prices, but adjusted for inflation, cheaper. But I guess we'll see Everyone I knew claimed housing prices would never go down either, and they're down 34% in California now.

[MrSlippyFist]

I'm no economist, but I do work in the mining industry and understand the supply/demand and global aspects involved. And I can assure you, demand is always high, regardless of market price - and america will not stop buying cheap chinese crap.

[xrMike]

That would imply there was never cheap ammo -- maybe you mean dinosaurs instead? At least they existed.

I see your point; yes, I think you are correct.