With the standard commodity plays such as gold, silver, and oil falling due to a strong dollar, and systemic corruption in the markets after the MF Global scandal leading to failing confidence in the futures markets, the new bull market appears to be in more tanglible items.
In a newsletter from December 22nd by ammo.net, sales of guns and ammunition nationwide have skyrocketed since Black Friday, and have not lessened throughout the entire holiday shopping season.
Whatever their reason, Americans are purchasing firearms and ammunition in record numbers. USA Today recently reported that the FBI experienced on Black Friday their single largest number of background check requests ever in a single day, smashing the previous record by 32%. Background check requests are processed by the FBI according to federal law. Gallop also reported that gun ownership is at an 18 year high, with 47% of Americans admitting to Gallop they own a gun. These statistics coupled with customer feedback at Ammo.net indicate more Americans are taking advantage of their constitutional right to own a firearm - and are arming up in increasing large numbers. – Ammo.net newslettervia zerohedge
In a chart that ammo.net has put together on gun and ammunition statistics since 1999, ammunition prices have risen in a comparable rate to oil and gold, while gaining a much larger buying audience. Since 1999, over 135 million legal purchases have gone through the FBI system, which is far greater than individuals who have invested in physical gold or silver.
Besides an increase in gun and ammunition sales, Americans are increasing their stockpiles of disaster preparedness gear and long term food storage. Even more than Christmas gifts, shopping for items that point to a future of increased chaos and a fear of the unknown this year because of the economy and forecasted outlooks has become a priority to many Americans, and a commodity unto itself.
Retail sales are an important indicator in the direction and growth of the economy, and statistics now point to a sea change in what people are putting their money towards. A commodity is a tangible good that is affected by supply and demand, as well as monetary inflation, and can create a market unto itself. Since 1999, and especially going into the 2011 holiday shopping season, guns and ammunition are proving to retaliers to be the new bull market as other equities, securities, and commodities all fall in price because of deflation, uncertainty, and a temporary strengthening of the US dollar.