Homeland security is buying a ton of ammo, but the ammo makers say that most of the round they make go to the consumer market. So why is ammo so expensive? Here’s why:

“There are now more than 5 million women participating in the shooting sports, an increase of 46.5 percent since 2001. The number of gun owners in America surpassed 100 million a few years ago, according to the NRA. Reportedly, NRA membership now exceeds 5 million. More gun owners means more ammo being shot.”
Source: http://www.forbes.com/sites/frankminiter/2013/10/20/is-the-obama-administration-the-cause-of-gun-ammunition-shortages/

Not to mention:

“There has certainly been price gouging by enterprising individuals. Some people have bought up all they can find and are reselling the ammo over the Internet. Other people are simply stockpiling when they can to avoid future problems.”

The good news is that many ammo makers are operating 24/7, this is a great opportunity for the ammo business to expand, and they are indeed expanding. Once supply exceeds demand, prices will come down.