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

Eaa Girsan Witness2311 Matchx Rifleman Review 1
Eaa Girsan Witness2311 Matchx Rifleman Review 1

Rifleman Review: EAA Corp. Girsan Witness2311 Match X

One of the latest 2011-style handguns out from European American Armory Corp. is its Girsan Witness2311 MatchX platform, which includes a built-in, single-port compensator and is designed for competition use.

Shell Shock & CBC Global Ammunition Sign Manufacturing Agreement

Shell Shock Technologies (SST) and CBC Global Ammunition have signed an agreement that adds manufacturing capacity, advanced tooling and new SST operations in Oklahoma and Michigan.

Short & Sweet: Springfield Armory's SA-35 4" Polished Blued

Springfield Armory continues to expand its SA-35 High Power handgun line, and one of the latest versions is this new SA-35 4" Polished Blued model that provides some added luster while remaining compact.

75 Years of CCI

What better time to look at what’s new at CCI than when the company's celebrating 75 years in business?

The Galactic Pistol Alliance: An Entry Point For New Competition Shooters

Galactic Pistol Alliance jettisons rule confusion and offers a much more relaxed model for newcomers to competition shooting, all while keeping cool shooting stages and an emphasis on safety.

NRA Supporter & Gold Expert Mike Fuljenz Wins Newsletter Award

Longtime NRA Supporter Mike Fuljenz, founder of Universal Coin & Bullion, was awarded the 2026 Best Investment Newsletter award by the Numismatic Literary Guild. 

Interests



Get the best of American Rifleman delivered to your inbox.