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
** When you buy products through the links on our site, we may earn a commission that supports NRA's mission to protect, preserve and defend the Second Amendment. **
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

Keltec Sub Sdp 1
Keltec Sub Sdp 1

The "Nub Sub:" KelTec's Ultra-Compact SUB-SDP

KelTec is expanding its SUB2000 line yet again with the SUB-SDP, a foldable, braced pistol that KelTec folks colloquially refer to as the "Nub Sub."

Gun of the Week: EAA Girsan Witness2311 CMXX

One of the latest options in EAA's line of 2011-style handguns is the Witness2311 CMXX, which incorporates a large, single-port compensator at the muzzle end.

The Armed Citizen® July 24, 2026

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

Review: Freedom Ordnance FM-9D

New small arms with groundbreaking designs are rare in an industry where new products tend to be evolutionary rather than revolutionary. Fortunately, Freedom Ordnance marches to the beat of a different drum and invested its creative energy into developing the unique, innovative FM-9D. 

Number of Retail FFLs Dwindling

The number of retail outlets with an FFL Type 01 license to sell firearms has declined by more than 13 percent in just the last five years.

Ammunition Depot and NRA Partner to Expand Support for Second Amendment Litigation

The NRA has invested more than $3 million in California Second Amendment litigation since 2021 and has provided support for Rhode v. Bonta; Ammunition Depot is launching a checkout donation option to help fund ongoing legal efforts.

Interests



Get the best of American Rifleman delivered to your inbox.