So now demand goes back up a little, and prices come up a little and stabilize (at "normal" prices).
And, that's when prices drop (even below what they were pre-panic / frenzy) and guys like us start to buy again. They need to incentivize the unloading of this inventory. It takes up real estate, which costs money. Again, they cannot afford to sit on growing stacks of inventory. Their overhead CONTINUES with the costs of storing inventory. Their overhead does not end at the cost of materials, labor, and wholesale purchases.
Eventually, THEY start to panic and MUST unload this inventory.įor manufacturers of ammo, distributors, and retailers. Manufacturers, distributors, and retailers can't sit on inventory forever, and they don't like seeing it stack up, because the longer that goes on, the more it COSTS them. When demand goes to zero (temporarily), Supply (inventory) will start to stack up. The panic is still going right now, but the intensity is dropping. And the hobbyists are still "good to go" and can still wait. The increase in demand will soon fall off a cliff. That demand is already abating (now down to 200% and decreasing steadily). But, the bulk of the inflation, which went to 500% for ammo, was due to the HUGE spike in demand. We can wait out the spiraling inflation (due to a spike in demand). We can go to the range regularly for a few years and not run out of ammo. In fact, the serious hobbyists / enthusiasts (like me and many of us) haven't bought a gun or ammo in at least 2 years. Some will even later regret the purchases and dump (sell) them back into the market (adding to Supply). They stick them in the closet, where they'll remain for years. They won't be going to the range regularly and expending their ammo. Once they've got the guns and ammo they "need". These same folks are NOT hobbyists or enthusiasts. I mean "mostly peaceful protests." Afraid of the gov't. These are panic buyers who "need" a gun because they're afraid. It's not like gas or food (non-durable goods) where the demand is steady.Ī huge part of the increased demand is from first-time gun buyers. And, ammo is a durable (while expendable) good. HOWEVER, the demand for ammo fluctuates WILDLY.
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