Commodity prices

[Guest dotsun]

Here's a link I found regarding the soaring prices of commodities. I think it's pertinent as most of us buy ammo and it's price is fairly well linked to the price of components.

http://online.barrons.com/article/SB120674485506173053.html?mod=9_0002_b_this_weeks_magazine_home_top

[The Rabbi]

Here's a link I found regarding the soaring prices of commodities. I think it's pertinent as most of us buy ammo and it's price is fairly well linked to the price of components.

http://online.barrons.com/article/SB120674485506173053.html?mod=9_0002_b_this_weeks_magazine_home_top

No, it's somewhat linked to the price of components. Other factors include demand overall. With the US military snarfing up all the 5.56 and 7.62 they can, that crowds out production of other calibers, raising prices overall.

If the war winds down and ammo requirements lessen, we'll see prices tend down.

[saintsfanbrian]

There is a war on?

It will wind down?

Wars don't end, they just change battlefronts.

[The Rabbi]

They also change ammo requirements.

The Iraq engagement will end or simmer down at some point.

[Guest dotsun]

No, it's somewhat linked to the price of components. Other factors include demand overall. With the US military snarfing up all the 5.56 and 7.62 they can, that crowds out production of other calibers, raising prices overall.

If the war winds down and ammo requirements lessen, we'll see prices tend down.

It seems the price of copper and lead would have a pretty big impact on ammo prices, since a fair amount of the round consists of... well, copper and lead. Hell I paid $3something for a small pack of lead fishing weights at WW the other day that probably would have been half that a year ago. I don't suspect tackle is a high priority item for the military.

However, I do understand that demand for ammo is higher now and certainly exacerbates the problem along with the decline of the dollar. I hope you're correct about prices dropping when the war is over, but I'm not nearly that optimistic.

[The Rabbi]

Actually the biggest cost is probably manufacturing the item, not the materials in it. Material cost obviously play some part, and when the jump has been as big as it's been, it will come out.

BUt I still think the driving force is more greater worldwide demand for ammo than demand for material.

[musicman]

I think the biggest cost is profit and middlemen/distributors!

Anywho... I just figure ammo's basically going to cost a lot forever, and I'm just going to have to reload and buy components when I can. I don't have the financial ability to buy supplies in great amounts and stock up right now so I'm a little bummed, but at least I can still shoot some. I've got about 10lbs of powder and roughly 4,000 bullets and primers spread among 38/357 and 44.

I wonder on the local level how much effect a few people who have massive amounts of money who are purchasing tens of thousands of rounds at a time (I've spoken to two, and I don't know many people, so there have to be a good number of these folks) are having on the cost of ammo at our local shops. I know they can't give the stuff away, but I wonder if (like the oil companies seem to be doing) a lot of companies are loving the demand and price increases and also increasing their margins percentage wise, in a disproportionate amount to their cost increases. I'm sure there are shops on both sides of that. I know of one store who last year ate two price increases before raising their sale price.

I'm not saying that any of these phenomena are good or bad. I'm all about a shop setting their own prices and testing the waters for what they can charge for an item. I understand that Franklin Gun Shop and Gun City are around because there are people who will pay more for an item.

(But, I'm glad the Rabbi is around so maybe I can afford something when it's actually time to buy!)

[Guest dotsun]

Actually the biggest cost is probably manufacturing the item, not the materials in it. Material cost obviously play some part, and when the jump has been as big as it's been, it will come out.

BUt I still think the driving force is more greater worldwide demand for ammo than demand for material.

So you believe manufacturing costs have doubled or tripled in the last 3 years?? No rocket science is required to pour lead into a mold to make my fishing sinkers. Just look at the history of copper prices and you'll see where that increase is actually coming from.

Have you priced copper tubing lately? I can't believe there's a huge demand by the US military for copper pipe any more than there's a high demand for lead sinkers, but the prices are sky high. If the guys that manufacture copper pipes and lead weights have doubled (perhaps tripled) their income in the past 3 years I need to talk to their union steward.

[Guest price g]

Fuel costs are an easy way to cover up unfounded price gouging

[saintsfanbrian]

So you believe manufacturing costs have doubled or tripled in the last 3 years?? No rocket science is required to pour lead into a mold to make my fishing sinkers. Just look at the history of copper prices and you'll see where that increase is actually coming from.

Have you priced copper tubing lately? I can't believe there's a huge demand by the US military for copper pipe any more than there's a high demand for lead sinkers, but the prices are sky high. If the guys that manufacture copper pipes and lead weights have doubled (perhaps tripled) their income in the past 3 years I need to talk to their union steward.

Considering all of the military installations that are being put up all over the world in hot spots, I CAN imagine there is a big demand for copper tubing from the military. We had tons of it laying around the warehouse when I was in supply.

[Guest dotsun]

Considering all of the military installations that are being put up all over the world in hot spots, I CAN imagine there is a big demand for copper tubing from the military. We had tons of it laying around the warehouse when I was in supply.

If that were the cause of the rise in commodity prices, I would expect to see other construction material prices rise equally. I haven't.