ART CASHIN: Hunters Tell Me That Rifle Ammo Has Been The Best Investment Of The Last Year

CNBC

Art Cashin's note today is particularly conspiratorial.

Cashin, UBS Financial Services' director of floor operations, addresses a rumor going around that the government has been beefing up its arsenal.

Where Are Those Black Helicopters Heading? – For weeks and weeks the blogosphere has been on fire with stories about massive purchases of ammo and weapons by Homeland Security. The questions raised are now morphing into the main stream media and even some Wall Street watering holes. A few members of Congress have begun to raise questions.

If you haven't yet heard any of this, here is one of the less incendiary references by our pal and fellow street veteran, Jim Brown in Monday's Premium Investor:

You may have seen the news stories on Homeland Security ordering 1.6 billion rounds of ammo, 7,000 machine guns and 2,700 armored personnel carriers for delivery later this year. At the height of the Iraq war the military was only using 5.5 million rounds a month and there were 500,000 soldiers. Those 1.6 billion rounds would fuel a war of that size for 30 years. They recently put out an "emergency order" for riot gear, body armor and "bullet proof checkpoint booths." What are they preparing to defend? Why are all the orders being placed on an "emergency" basis?

Responses from Homeland Security, at least the ones I've seen, have been rather vague. That tends to fan the flames rather than dispel the rumors.

Friends who are hunters and gun club members tell me that the best investment over the last twelve or sixteen months was probably rifle ammunition. They claim the price has doubled and almost tripled. So far, there is no ETF that I know of.

There have been reports of guns and ammo selling out. But this has largely been attributed to the prospect of tighter gun control laws.