If you thought lumber prices were high in 2021 or that the US housing market was hot, you might be missing the hottest market and the industry that is seeing the highest price increases; the gun and ammunition industry. In 2020 the US saw record levels of gun purchases halfway through 2021, and there is no slowing down.
In 2020, more than 21 million guns were sold in the US; that’s more than double the number of guns sold 20 years ago. And according to the FBI background checks done thus far in 2021, we are likely to see more than 21 million guns sold this year.
With that many guns being sold, it's not hard to see why ammunition is not only in short supply but why prices are up more than 100% when compared to just two years ago. However, despite ammunition prices rising, some people being interviewed say they would buy more if they could get it. Some gun owners have said it's not uncommon to own thousands of rounds for each different type of gun they own.
So, when you add the two factors together, 21 million new guns sold in 2020, and we are well on our way to see close to, if not more than that, sold in 2021, and of course you need bullets for these millions of guns being sold, maybe not thousands, but at least some. Well then, it makes perfect sense why ammunition is in low supply, high demand, and prices are soaring.
As an investor, how can you benefit from this gun-crazy situation? Continue reading "Investing In The Guns And Ammo Boom"