was more like Increased demand > increased supply > tanking prices > colt refusing to be competitive so stopping production to artificially decrease supply for their rifles and artificially increasing the price > start production again to sell at artificially increased price
much closer to what keeps diamond prices high even though they aint worth ****.
De Beers had a monopoly on diamonds until recently. I don't think Colt has a monopoly on anything. So I don't think they're able to manipulate market prices as effectively. Colt has also had a lot of financial problems and it would make sense to me that they have to be adept at dealing with market changes to stay profitable.
Not very long ago, gas prices went through the roof and stayed there for an extended period. Demand for pickup trucks fell, supply rose, and prices dropped as companies struggled to clear their inventory. Companies cut production of pickup trucks and ramped up production of econo-****-boxes. Later, once gas prices fell, companies shifted their production yet again. I think this is all normal stuff.
Is Colt worth the premium their products command? That's a different question all together. As long as people are willing to pay it, I suppose the answer is yes.