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Why do you need armor piercing ammunition?
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There is no real practical reason for me to have AP ammo - I won't hunt with it and I prefer other types of ammo for target practice. But do we do everything out of practical considerations? Maybe I just want to have 1-2 magazines of that ammo "just in case" for a doomsday scenario when aliens land on earth to invade us or whatever - I am sure that I will never fire it. It is extremely unlikely that anyone would have a practical need to fire it but it is nice to have a comforting feeling in the back of your mind that you also have that option in ammo if you need it.
There are other interesting types of military ammo - for example Russia makes special ammo for AK type guns that sets things on fire. Like you shoot that round on enemy wooden roof and it's on fire. I don't know if this is made for US military as well. I wouldn't be interested in having it anyway but it does exist.
Also, are you sure that AP ammo is illegal in all states? To me it looks like if I can buy it at a gun show, it is pretty legal.