Who is buying up all that Walmart ammo?

That would be ammo retailers who are treating Walmart like a wholesaler.

I have an inside source in Walmart who tells me that the internet rumor going around that Walmart has stopped buying ammo until it knows how Washington will shake out on gun control is simply false. In fact, my source says that stores continue to get ammo all the time but it is snapped up by customers immediately. Quickest to sell are 5.56mm and 9mm ammo.

But why did Walmart sell out so quickly after the Sandy Hook shootings? The reason is simple. My source says that the very day of the shootings, managers of licensed gun stores went straight to their local Walmarts and cleaned the shelves out. They took the ammo back to their own stores, locked it up and let it sit for a couple or three weeks. Then they put it out for sale at double what they paid.

Source cited one Walmart where a gun-store manager came in and bought $6,000 worth of ammo, paying in cash. That was every box of ammo the Walmart store had in stock.

Makes sense, when a product is sold at a price below market equilibrium, you can expect it to be snapped up and resold. This effect is well known by anyone who has ever bought a scalped ticket to a concert or sporting event for multiple times the original price.

The market never goes away. People will pay what the market demands.

Bookmark the permalink.

One Response to Who is buying up all that Walmart ammo?

  1. messup says:

    A true testament to Ludwig Von Mises’ Nobel Prize thesis of “Business Cyles” where he states all business cycles occur and are expressed at the “individual level,’ i.e., what any one individual is willing to acquire: 1)land, 2) labor or 3) capital at a pre-arranged price and agreed upon terms. Need proof? Just turn on any TV and watch Discovery or NATGEO channels where they air individual transactions on: Pawn Stars, Moonshiners, Red Jacket, Storage Wars, et al. No government, no Congress, no Senate, no legislators…just individuals telling the market what those goods and services are worth…period. Works every time…and it’s American Capitalism determining American Excellence at every turn…works beautifully, is super efficient and no Progressive New Left Activist’s intervention. Pray. Amen.