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

Forehand & Wadsworth British Bull-Dog right-side view nickel-plated gun revolver with black grip
Forehand & Wadsworth British Bull-Dog right-side view nickel-plated gun revolver with black grip

I Have This Old Gun: Forehand & Wadsworth British Bull-Dog

Many eagle-eyed NRA members viewing the 1993 Western “Tombstone” no doubt recognized the Forehand & Wadsworth British Bull-Dog so deftly welded by actress Joanna Pacula, portraying Big Nose Kate, during a contemptuous card game between Doc Holliday and Ed Bailey.

Medal Of Honor Marine Receives Henry Repeating Arms Tribute

Henry Repeating Arms presented a Spirit of the Corps 250th Anniversary Tribute Edition rifle to Maj. Gen. Livingston for going above and beyond the call of duty on May 2, 1968, during the Battle of Dai Do in Vietnam.

Preview: Duramag 1911 DS Magazines

Duramag’s 1911 DS Magazines are compatible with numerous 9 mm Luger-chambered 2011-style handguns on the market.

Colt Monitor: The FBI’s “Fighting Rifle”

In the years between the World Wars, a rare variation of the Browning Automatic Rifle proved its reputation as an effective, devastating automatic rifle for combat between the country’s lawmen and its outlaws.

The Armed Citizen® May 19, 2025

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

Report Shows Inventory, Prices Have Dropped At Firearm Retailers

Nearly all gun and related gear inventories at retailers dropped in the last 12 months. So have most prices paid at the counter, according to the year-over-year comparison detailed in the latest RetailBI report.

Interests



Get the best of American Rifleman delivered to your inbox.