The NJ Star-Ledger is pleading with Virginia not to re-open the “Iron Pipeline” by repealing its gun rationing law, but this previous editorial from the same paper notes that it never really closed, and suggests that most of New Jersey’s guns come from Pennsylvania and Virginia even though Virginia has a one-gun-a-month law. I don’t think the frequency that Virginia is cited as a source state for guns has diminished any as a result of their law.
This study of trafficking from the FBI in 1998 highlights the problem:
The straw purchase serves as another method often employed by an illegal firearms trafficker who cannot legally purchase firearms. Most traffickers use a series of straw purchasers directed to various firearms licensees. A common scenario entails the firearm trafficker accompanying the straw purchaser into the firearms store to pay for the purchase while the straw purchaser completes the paperwork. Store video surveillance can verify this type of purchase.
The problem is that the straw purchase rings, to the extent that they exist, aren’t stupid, and know to how to route around current trafficking detection practices. It’s relatively easy to route around others. Where there’s a high demand for a product, there’s going to be supply to meet that demand. You might be able to drive price higher with interdiction, but only to a point.