Diamond Lifetime
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So Trump has been a turning point for preservation of firearms rights but it has been a real double edge sword for the industry. Silencer Co has laid off half its employees, Olympic Arms is shutting down,most if not all firearms companies stock values have dropped if not plummeted. The number of BGC per month has tanked.
I have noticed a "yuuge" trend in the black rifle parts market. I suspect many companies tooled up and cranked out gobbs of stuff anticipating a Hillary win and now are trying to blow stuff out to recoup the investment. Thing is this is forcing a depressed market even further down.
Again, I think it's a good thing for the enthusiast today, but in the bigger picture I am worried about the longer term effects. Manufacturers are going to fold, distributors fail and in the end we will be left with fewer choices and a smaller industry.
The sheer amount of black rifle bits that are in inventory and the almost 180deg shift in the buying patterns of that demographic I fear will result in a very long cycle to equalize the supply/demand curve. To wit, it's gonna cripple many of the small shops that have innovative products, the guys pushing much of the industry forward.
I have bought a lot of stuff in the last 6 months because of this firesale. I have stocked up on what is probably a lifetime of parts. Now though I am beginning to realize that this pile of stuff that I have always looked at as an asset I could liquidate if I got in a pinch would be difficult to convert to cash without taking a big hit.
I have 5.56 ammo for sale locally @ $225/1000 for a month now with no interest. I have had 4 new unfired AR's listed at 75% of what the parts cost (one at less than $500) with no interest. These are not junk or special hard to move rifles, built with good parts on Aero and SSA lowers. No different than rifles I have sold for close to twice what I am asking in the past.
So what do you think, is this a short correction that will run its course in 6 months to a year or is this the new normal? Has the "black rifle fad" run its course sort of like the custom chopper fad that resulted in being able to buy a $50,000 motorcycle for $8,500? That market has never recovered and probably will not in the next decade at least.
I have noticed a "yuuge" trend in the black rifle parts market. I suspect many companies tooled up and cranked out gobbs of stuff anticipating a Hillary win and now are trying to blow stuff out to recoup the investment. Thing is this is forcing a depressed market even further down.
Again, I think it's a good thing for the enthusiast today, but in the bigger picture I am worried about the longer term effects. Manufacturers are going to fold, distributors fail and in the end we will be left with fewer choices and a smaller industry.
The sheer amount of black rifle bits that are in inventory and the almost 180deg shift in the buying patterns of that demographic I fear will result in a very long cycle to equalize the supply/demand curve. To wit, it's gonna cripple many of the small shops that have innovative products, the guys pushing much of the industry forward.
I have bought a lot of stuff in the last 6 months because of this firesale. I have stocked up on what is probably a lifetime of parts. Now though I am beginning to realize that this pile of stuff that I have always looked at as an asset I could liquidate if I got in a pinch would be difficult to convert to cash without taking a big hit.
I have 5.56 ammo for sale locally @ $225/1000 for a month now with no interest. I have had 4 new unfired AR's listed at 75% of what the parts cost (one at less than $500) with no interest. These are not junk or special hard to move rifles, built with good parts on Aero and SSA lowers. No different than rifles I have sold for close to twice what I am asking in the past.
So what do you think, is this a short correction that will run its course in 6 months to a year or is this the new normal? Has the "black rifle fad" run its course sort of like the custom chopper fad that resulted in being able to buy a $50,000 motorcycle for $8,500? That market has never recovered and probably will not in the next decade at least.