The oldest axiom on how to make money on Wall Street is to “buy low, sell high”.
It should come as a surprise to nobody that gun sales are off following the 2016 elections. We don’t talk politics, even a little, here at 3BY, but I think everybody on all sides would agree that with the Republicans taking over the White House and having control of both houses on Capitol Hill, there is a lot less of a chance that legislation restricting 2nd Amendment rights will be passed by the federal government.
Not surprisingly either, that lack of pressure has ended what was often “panic buying” happening in the gun market, especially after tragic events like Sandy Hook when political leaders from all over the country made strong and aggressive cases for enacting new gun restrictions.
After Sandy Hook, while many members of Congress and the White House were calling for (and even introducing) legislation, there was a massive panic in the gun owning/buying public. At one point in time, a couple of months after the mass shooting, that weapons such as an AR-15, 30-round magazines and .223 ammunition were selling at up to 10-times retail price at Gun Shows, if you could find them for sale at all.
Various calibers of ammunition vanished from the shelves, including eventually the ubiquitous .22LR bulk “value pack” boxes. It took months and sometimes years for the supply to catch back up to the demand, and in the case of .22LR it STILL hasn’t caught up to where boxes sit on shelves at big-box retailers without being sold-out on a regular basis.
In a report on Fox Business, Ruger CEO Christopher Killoy said demand slowed “considerably” compared to the same period in 2016, when gun sales got a boost from the presidential election. Last year, background checks conducted by the FBI, including purchases and permit applications, hit a record 27.5 million. “I think there was a big hangover coming off the election cycle, for sure, that had to be worked off,” he said.
So what does this mean to the consumer? Sales are dropping, and prices new and used are dropping, so NOW is the time to buy. If you’ve been putting off stocking up on “normal capacity” 30-round magazines, perhaps it’s time to go ahead and pull the trigger and get stocked up. Look for sales, contact your local retailers and see what guns they would be able to price aggressively.
Pro Tip: The best day of the week to shop at a local gun shop is Thursday, especially if it’s been a slow week. Take cash, wave it at them and get your great deal… they have to make payroll on Fridays, so having money in hand can convert to big discounts. Try it, net yourself some savings.
Have you noticed a drop off of gun sales in your area? Fell free to leave your opinion in the comments section!