Monday, April 15, 2013

.22 LR Ammo Shortage - Update

 Price Update  - .22 LR - 550 Round Brick = $65-$120

Why the Shortage

Anyone looking at the usual places right now for .22 LR ammo must know it is gone and nowhere to be found.  I've visited Wally World for the past two plus months and haven't seen  any at any time.  Rumors abound that it goes right from the delivery truck into the hands of professional watchers that know the schedule of deliveries from employees.  Who knows.  I've been told by some employees when the trucks arrive but I can't plan my days around waiting for ammo to arrive, at least not yet.

What are the reasons for this shortage.  Well, we're in a nationwide ammo shortage so .22 is just another part of the picture, but because so many people shoot .22 it is even more acute.  Additionally, with prices up on everything else shooting a .22 is a great alternative for many people to take to the range.  I have noticed a huge number of AR15 style .22 rifles going out the door for the past few years and now the volume has increased dramatically.  It is clear that demand has just outstripped supply as people scramble to find this ammo for hoarding, profit, and use.

Current Pricing

I talked to a few acquaintances and friends regarding the .22 ammo prices.  Here is what I am getting from them in the Mid- Atlantic corridor of the US for pricing.  One just sold three boxes to friends at work for $65 each while another I met a a range in my travels sold 7 bricks for $75 each.  I'm now thinking they gave up the goods too cheaply for the moment.  The current market price is at least $100 per brick which is more than 5 times what it was selling for 4 months ago.

I spoke to an ammo dealer I know from Pennsylvania and he now sells a 550 round brick of .22LR for $100 each when he can get them.  I watched three go out the door at that price at a recent gun show while I talked to him at his tables.  Speaking to a heavy ammo user at that same show who has a massive collection of ammo for his weekly habit of 700 rounds downrange he said that he had offers for $110 per .22 brick and he finally relented and sold a number of them at that price.  An online auction/ brokerage site confirms these prices with current auctions showing even Blazer .22 bricks with buy-it-now prices around $120 and closing prices at around $110.

Where to Find .22 Ammo 

Gunbot .22 ammo finder

Slickguns.com .22 ammo

Wholesalehunter.com .22 ammo

At this point if you can find a brick of .22 at a gun show you're still better off paying that $100 price than the higher price for the target .22 ammo.  If you get lucky enough to find a brick at the chain store you might even get it for less that $30.  Good luck on that for now.

Long Term Outlook

Even when the actual physical supply increases I expect shortages to remain for a long time as many people begin to hoard for any future shortages.  This will probably extend the time where supply appears minimal but in truth the demand will remain high  as people stock up based on recent experience.  Imagine if you were one of the people that paid $100 for a brick of .22 and then saw it in the store for $30 or $25 per brick.  You'd buy all they would allow you to buy probably.  I expect that I would in that circumstance.  Hopefully prices will come back down at the retail level closer to the $18-$20 range that we had prior to the beginning of the year.  It is possible though that we have a new pricing paradigm just like after the 2008 election.  Prior to that .22 bricks were $12 or less and after that election induced shortage subsided the new price was closer to $20.  I hope we don't see a new permanent price of $30 per brick or higher but it is possible.

What To Do

The only other advice that I can give you regarding this is that if and when the supply does come back around and prices drop back somewhat, begin a regular buying habit to build a supply that will last you for a while.  This can be called hoarding by some, but I just call it good common sense.  If everyone made it  a habit to pick up some regularly rather than go into panic mode the manufacturers would likely increase production if they saw a consistent long term increase in demand.

Until then, take out your BB, paintball, air-soft, or pellet guns for some low cost and currently available practice supplies.  Even dry firing with a laser trainer is a decent substitute.

My Prediction

BB and Co2 shortage looming.  Just kidding and I hope not.


What others Say

The shortage is not likely to last.

Pricing is based on demand and demand is high.

Hoarders are to blame.





No comments:

Post a Comment

Followers

Blog Archive