Here's why ammunition can be a good investment - East Idaho News
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Here’s why ammunition can be a good investment

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If you have owned guns and been around ammunition for any length, you know how the price has continuously increased over the years. Twenty years ago, you could buy a round of .22LR for a penny; today, it is 10 times that much.

Ammunition is like gold in that it is both valuable and tangible. It’s something you can hold in your hand and will always have some value. As a result, there is some value to investing in ammunition — particularly when times are tough.

One of the major benefits of ammunition is that it can be stockpiled, and it doesn’t go bad as long as it is stored properly. Ammunition stored in a temperature-controlled environment can last decades. Today, people commonly shoot military surplus ammunition produced in the 1940s — some 80 years ago!

As ammunition always has value, it can be used as a medium of exchange if necessary. People could conceivably trade ammunition for other needed items, such as water or gasoline, if ATMs were offline and cash wasn’t an option.

Additionally, during times of civil unrest or a breakdown of law and order, the usefulness of ammunition goes up, and so does its value. An example of this was in 2020, when ammo prices went up due to widespread instability during the COVID-19 pandemic.

During that time, ammunition prices surged, and availability decreased drastically. Anyone hoping to buy ammo in the local sporting goods store saw barren shelves. Its value tripled or quadrupled in a few short months.

Ammunition’s value can increase quickly with changing political winds in less dramatic times too. If there is any talk of banning certain types of ammunition or putting a tax on ammunition, its value can increase suddenly, as we’ve also seen.

It is unlike other products in our society and lends itself well to stockpiling for and unpredictable future. So how exactly do you do that?

The simple answer is to buy it and stock it away!

A more complete answer is that you’ll want to ensure your ammo is protected from theft and the elements. Ideally, keep ammunition in a climate-controlled environment. At the very least, don’t expose it to fluctuating temperatures and especially not moisture.

Once you have your storage situation optimized, you’ll need to work it into your household budget on a regular basis – like paying a bill. Local ammunition retailers recommend making a plan to optimize your purchases.

Retailers recommend buying ammunition regularly so you can dollar cost average your purchases. This means spending the same amount each month and buying more rounds when the price is lower and fewer rounds when prices are higher. Over time, you’ll have the best cost basis for your ammunition stockpile.

While it is certainly possible to consistently buy ammo from your local sporting goods store or online, some companies can simplify and automate that process for you. They generally make it easy to set up a recurring purchase plan, pick out what you want, and have it all stored for you in a climate-controlled environment until you want it shipped to your door.

Other benefits of using an ammunition bank account type of service include the ability to automatically purchase ammunition on your schedule, so you can set it up to match your paycheck. Also, as your ammo account balance grows, you can make changes online with the click of a button to sell some or buy more. You can usually even exchange one caliber for another – all without moving an actual case of ammunition yourself.

An important reminder is not to store all of your ammunition in one place. There are benefits to keeping ammunition at home, such as range work, self-defense and hunting. However, keeping it all in one placed risks total loss from flood, fire or theft, not to mention the expense and effort of transporting large amounts of ammunition if you move.

To sum up, ammunition can be a great financial hedge against hard times. It will always have value, and, if stored properly, will never spoil or go bad.

Plus, it’s useful — it doesn’t just sit there like a lump of gold. You can shoot ammunition for fun, defense or hunting. And you are prepared if there is ever a breakdown in law and order.

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