Potential 5.56 & 7.62 NATO Price Fluctuations Coming?

Could the U.S. Army’s shift to a 6.8 mm cartridge for close-combat troops could inadvertently trigger price fluctuations on 5.56 NATO and 7.62 NATO ammunition? Read on:

by
posted on April 21, 2024
Approaching Trend
Image courtesy of author.

The U.S. Army’s shift to a 6.8 mm cartridge for close-combat troops will trigger 5.56 NATO market fluctuations in the next few years. History indicates enthusiasts can expect prices to potentially decline, initially, followed by slow rise to a price plateau. It’s the U.S. Army’s widespread fielding of its Next Generation Squad Weapons System (NGSWS) to combat troops—chambered in that 6.8 mm cartridge—to blame.

It doesn’t take a crystal ball to make that prediction, either. The .30-‘06 Sprg. cartridge provides a roadmap for the approaching trend.

The U.S. military officially adopted the .30-’06 Sprg. in 1906. With improved accuracy and fight-stopping performance downrange, it soon found itself in the hands of our soldiers across the globe with M1 Garands, M1903 Springfield bolt actions and others.

By the late 1950s, the 5.56 NATO and 7.62 NATO cartridges were being methodically phased into frontline service. It wasn’t until the late 1970s that the .30-’06 Sprg. was officially retired. In the meantime, factories churning out the volume required for marksmanship practice, strategic stockpiles and combat shifted production emphasis.

Surplus became readily available on the commercial market and prices for .30-’06 Sprg. ammo dropped dramatically. The March 1986 issue of American Rifleman magazine even proclaimed it was available for “pennies per round” during the 1960s.

That kind of savings is enough to catch the attention of any enthusiast. Inflation, however, enters the equation. Five cents in 1960 converts to roughly a half dollar, according to the U.S. Bureau of Labor Statistics inflation calculator. Today you’re paying nearly a buck a round for inexpensive .30-’06 Sprg.

Today’s situation is slightly different, though. Troops whose duty isn’t primarily combat will still be issued rifles chambered in 5.56 NATO and 7.62 NATO. Those cartridges haven’t quite reached retirement age, which means the entire ammunition surplus won’t swell FFL shelves in an overnight tsunami. Those in uniform using them, however, don’t live-fire practice as often, or require the same strategic stockpile. Excess will potentially be released at a pace that reflects that reduced annual consumption and wartime requirements.

Latest

Firearm Industry Economic Impact Rises
Firearm Industry Economic Impact Rises

Firearm Industry Economic Impact Rises 371 Percent Since 2008

The total economic impact of the firearm and ammunition industry in the United States increased from $19.1 billion in 2008 to $90.05 billion in 2023, marking a trending increase of 371 percent.

Preview: Aircraft Weapons Of World War One

In a rich collection of images, all organized into chapters highlighting different types of aircraft, armament and ordnance, author Tom Laemlein provides an exciting window into the infancy of aerial combat in Aircraft Weapons Of World War One: A Photo Study Of Aerial Ordnance In The Great War.

New For 2024: Zenith Firearms ZF-56

Zenith Firearms is known for its G3- and MP5-style firearms, but this year, the company is taking the roller-delayed firearm concept to the next level with the ZF-56.

Preview: SME Spot Shot WiFi Spotting Scope Camera

Shooting Made Easy’s (SME) Spot Shot camera is the latest incarnation in a line of devices aimed at digitizing the analog world through a simple, yet effective, enhancement designed for use on traditional field optics.

Gun Of The Week: Kimber KDS9c

Welcome to another American Rifleman Gun Of The Week video, and this time, we’re looking at the Kimber KDS9c, yet another M1911-style handgun that accepts a double-stack magazine.

The Armed Citizen® May 3, 2024

Read today's "The Armed Citizen" entry for real stories of law-abiding citizens, past and present, who used their firearms to save lives.

Interests



Get the best of American Rifleman delivered to your inbox.