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

Trump Atf Reforms F
Trump Atf Reforms F

How the Trump Administration is Reforming the ATF

After more than a year of review, the DOJ, and its sub-agency, the ATF, released 34 notices of final and proposed rules to eliminate infringements on Americans’ Second Amendment rights.

A Tale of Two Grips: Building Beyond the First Shot

Every shooter has two grips living inside them, and most never realize it until they are exposed by a timer.

Roni Corporation Establishes U.S.-Based Manufacturing

Roni Corporation—designer and manufacturer of the Micro Roni, PDW-style pistol-to-carbine conversion kits and other firearm accessories—has established U.S.-based operations and manufacturing in Houston, Texas.

PenFed Credit Union Reports Strong Q1 Growth in 2026

Continuing its record of positive growth over the last several years, NRA partner PenFed Credit Union reported increases in capital and liquidity, earning growth and credit quality through the first quarter of 2026.

I Have This Old Gun: Model 1884 Trapdoor Springfield

The U.S. military's first official breechloading service rifle was the Trapdoor Springfield, and of the line of guns that saw use throughout the late 19th century, one of the most refined was the Model 1884 Trapdoor.

A Retro Python: The Pietta Blacktooth Revolver

As the company did with the original Colt Single Action Army, Pietta sought to reproduce the Colt Python as closely to the original as possible with its new Blacktooth revolver.

Interests



Get the best of American Rifleman delivered to your inbox.