A retailer must constantly monitor his wholesale sources and market prices. When the market tightens up there will be a spike in wholesale prices, which must translate to a rise in retail prices; the only alternative being zero supply.

A retailer with a stock of .223 Rem purchased at $3.50 per box and selling for $4.99 per box notices that his suppliers have raised the wholesale price to $5.00 per box. This tells him that he cannot replace his inventory for the current retail price, so why would he continue selling for $4.99 per box? Selling what you can't get for less than replacement cost is not a part of any good business plan.

When the market eventually corrects, the same retailer may have a shelf full of .223 that cost him $5.00 per box during the tight market, but he is competing against others selling the same thing for $4.50. He can sit on that ammo forever, or he can sell it at a loss and restock with fresh product at lower cost. Not unusual in the business.

There is probably some price gouging happening during these market swings, but I doubt much of it happens at the retail level. The real gouging is done by individuals who stock up during easy times, then cash in during tough times. Even then, the "gouger" knows that he is tying up his cash for extended and unknown periods of time in hopes of making a future profit (certainly no guarantees).

A few years ago a friend mentioned that he was unable to find any 9mm ammo for range use. At the time I had a case (1000 rounds) that I had purchased for about $0.12 per round and set aside. My friend offered to pay me $15.00 per box ($0.30 per round) if I would sell him a few boxes. I let him have half of the case (500 rounds) for $150.00, recovering my cost of $120.00 for the full case and leaving me with 500 rounds in reserve at no cost (and $30.00 pocket money).

Does this make me a gouger? I thought I was doing a favor for a friend that also benefited me at the time. Walmart was selling WWB or Rem-UMC 9mm for $15.97 per box, but had none on the shelves.

I currently have several boxes of factory .300 Savage ammo that came to me from an estate. Looking at Midway and on GunBroker I see that these are selling for ~$35.00 per box. The boxes I have still show the K-Mart price tags at $4.37 each. What is the fair market value now? What will these be worth to a guy going hunting in November but can't find any ammo for his old Savage rifle?

The market will always be the market. Either you go with it or you can sit around and complain about it. Personally, I took up ammo reloading many years ago so I am not totally dependent on the market.