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

Bill Ruger, Sr., Alexander Sturm
Bill Ruger, Sr., Alexander Sturm

Legendary: Sturm, Ruger & Co. Turns 75

Started as a partnership between two young men in 1949, the firm now simply known as Ruger has achieved amazing success in the American firearm market. Today, three-quarters of a century later and counting, it shows absolutely no signs of slowing down.

New For 2024: Springfield Armory SA-16A2

Springfield Armory's latest addition to its AR-15 family is the SA-16A2, a faithful recreation of the original M16A2 that served as the U.S. Army's principal service rifle for decades.

The Armed Citizen® May 20, 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.

Simeon North: First Official U.S. Pistol Maker

Arguably the first official U.S. pistol maker, Simeon North began contracting to the U.S. government with 500 horse pistols in 1798. After subsequent success, North went on to supply the Horse Pistol of Model 1799 -1800 by the thousands, manufactured Hall rifles and more.

Preview: Ammunition, Demystified

Billed as “Hatcher’s Notebook for the 21st century,” Ammunition, Demystified: The (Non) Bubba’s Guide To How Ammo Really Works is intended for both advanced shooters and reloaders, as well as industry professionals.

James Wallace Elected As 76th NRA Director

James L. Wallace has been elected by the members to a one-year term ending in 2025.

Interests



Get the best of American Rifleman delivered to your inbox.