Is gun demand slowing?


CNBC (via. SaysUncle) reports that it may be, although this analysis does not appeal to be based on hard sales data.

Shares of the nation’s major firearms makers fell Monday on analyst concerns that the postelection surge in hand gun sales may be coming to an end.

Both Sturm Ruger & Co. Inc. and Smith & Wesson Holding Corp. declined following an article in the business publication Barron’s, which suggested that the companies could see slowing consumer demand for their firearms.

The news dragged stocks lower, but it wasn’t completely unexpected, said Cai von Rumohr, an analyst with Cowen and Co.

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Steve Johnson

Founder and Dictator-In-Chief of TFB. A passionate gun owner, a shooting enthusiast and totally tacti-uncool. Favorite first date location: any gun range. Steve can be contacted here.


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  • Philip

    We’ve run out of money

  • Jim

    Good! Now if ammo sales can start slowing down too the rest of us can get back to shooting squirrels with our .22s instead of everyplace in the tri-county area being out because some asshats have been hoarding ammunition.

    What I am waiting for (call me a heartless vulture if you wish) is that sometime in the soon-ish future people will realize that they have bills to pay. Stockpiling ammo and firearms is a good practice…if done wisely. I would posit that there are a good number of people who may or may not have been wise in their purchases. When bills need paying and arrears arise, I’d love to see many stockpiles liquidated…at a discount price, of course!

  • http://www.gunsandhunting.com/forum/blog/edfriedman2/index.php? Ed

    While it is likely that demand has indeed slowed, stock prices are a terrible judge of that reality. People always sell on news, any news. The news could be fantastic, and investors would sell because there’s a shot at good money today that might not be there tomorrow. If the news is bad, investors sell for obvious reasons. If the news is neutral, investors sell because it’s better to be safe than sorry. So stock prices tend to decline whenever there is news, even if sales are way up over last year and the companies are turning a healthy profit. It’s all speculation, rather than sensible investing for a dividend payment.

  • Paul_In_Houston

    Maybe most of the people afraid of what Obama would do have already made their purchases and don’t feel the need to buy more.

    And Philip is probably dead right with “We’ve run out of money”.

    It’s quite possible that the hyperinflation I feared with Obama’s election may be prevented by his brilliant strategy of “I’ll make sure you don’t HAVE any money to fuel inflation”.

    (I was going to put a smiley at the end, but somehow no longer feel like doing so.)

    -

  • Neil

    I’d say yes, demand has slowed. On a local gun selling site, people have mentioned that its taking longer to sell guns and prices are $100 – $200 lower than earlier this year. There’s lots of guns listed as LNIB. I know, too, of a local dealer that has been trying to sell a couple of brand new Bushmaster Patrolman M4s for the last three months. He’s sold one and keeps reducing the price of the other. It’s down to $1000 – thats about $279 below MSRP. I’m tempted to buy it myself but really don’t want to spend the money.

  • Matt Groom

    I suppose that now gun and ammunition sales are only ‘much higher’ than this time last year, as opposed to being ‘dramatically higher’ than this time last year.

    When I go into Wal-mart and see that the ammo cabinets aren’t empty, then I’ll believe it’s over. Its already lasted a quarter of a year longer than I expected it would.

  • Don

    Jim,

    I feel the same way and am looking forward to used/new in box popping up.

    -D

  • jdun1911

    Be aware that if you’re going to buy non-basic goods, make sure you will have a job till 2014. I am expecting at least an 11% unemployment rate by the end of the year and a minimum of 20% by the end of 2010.

    In a nut shell the stock market more or less is being trade between three to four computer programs that is run by the big banks on the behest of the US government. In other words fraud and the majority of investors got out of the market.

    With that said, if you don’t have firearms I suggest you seriously look into buying one for personal protection. It’s going to get a lot worst.

    I prefer a rifle but more practical would be a shotgun or concealable handgun. It is a toss up tho. A shotgun is more versatile because of ammo section. A concealable handgun can be carry with you wherever you go. The first rule of a gun fight is having a gun right?

  • Rick

    Im just glad that America is well armed again.
    There are Tons of Ammo in American Homes, as well as thousands and thousands of Rifles, Shotguns, Pistols, and Revolvers.
    We know that, and other Countrys know that, It would be foolish to try to invade a Country like ours, with its Massive Millitary, and All of the Mellisias that could form from Armed Civilians.

  • K.D.

    Was in the local Gander Mtn. and they had stocks of .223 and 7.62 out their rear. The prices were a little high, but then Gander is a little more expensive than anyone else.

  • Nick

    Saving up to buy a Kimber. A better investment than the Stock market now!