Equilibrium pricing for .223?

[bushmaster1313]

Before the run up in price, I got 500 rounds at $0.35 a round for .223 American Eagle FMJ.

$175 seemed to be the going equilibrium price for a 500 round case.

Today I see the same cases selling at $400/500 = $0.80 around.

My guess is that the equilibrium price is still around $0.35 a round ($175/case) but I suspect there will be a lot of buying as soon as a case gets to $200/case = $0.40 per round.

 

[1KPerDay]

if it ever does...

 

[Queen_of_Thunder]

I recently paid $449 for 1,000 of federal 55gr 5.56. XM193 is going for $8.99 for a box of 20 at Academy. There is no 223/5.56 in the gun shops and when there is its $1 a round. Old prices will never be seen again and people need to come to grips with the new pricing paradigm.

 

[buckeye8]

Market Equilibriums are not static, and shift according to Supply (the willingness and ability of producers to provide a good or service) and Demand (the desire and ability of a consumer to buy a good or service).

The quantity of a good or service demanded by a market and suppliers' ability to provide it will shift the equilibrium accordingly.

The equilibrium price that you are referring to is the old equilibrium for this particular good. The drastic shift in the market recently has created a new equilibrium, and the old equlibrium simply no longer exists.

To call the old equilibrium "the" equilibrium is a misuse of the term, as there is no standard equilibrium for goods or services with elastic demand (which ammo is). Equilibrium is simply where Supply, Demand, Quantity and Price all intersect, and it changes along with market forces (such as the recent shifts we've seen in the gun/ammo markets).

I know what you are trying to say, and this is mostly semantics. I'm just trying to help, in case you ever accidentally end up having one of these conversations with an Economics teacher!

 

[Spymaster]

Before the run up in price, I got 500 rounds at $0.35 a round for .223 American Eagle FMJ.

$175 seemed to be the going equilibrium price for a 500 round case.

Today I see the same cases selling at $400/500 = $0.80 around.

My guess is that the equilibrium price is still around $0.35 a round ($175/case) but I suspect there will be a lot of buying as soon as a case gets to $200/case = $0.40 per round.

It'll likely never get there again, and if it happens too, it'll be years. Gold & silver brokers are now entering into the ammo market, these are not idiots, they don't buy and sell based upon whims, or gunboard discussion. They have evaluated the industry, and they have come to a conclusion.

 

[rbernard]

Ammo prices will return to where the once were, maybe slightly higher but not by much. The huge price increases you see are from smaller shops and gun specific businesses but when the manufactures can produce enough to meet demand you will see it return to the big box stores at a similar price as last year and the gouging guns shops will have to adjust to stay competitive.

 

[silicosys4]

My buddy just got back from Vegas where he did the ordering for his family's local sporting goods store at a large trade convention. His word was that ammo will be available again before too long, and at close to the same prices as before.

 

[Queen_of_Thunder]

You forget that basicly the entire ammo distribution system has to be restocked and that is going to take a very, very long time.