Investing in Copper.. Thoughts?

What do some of you think about this? Copper is real cheap and it's bullion. Do you think it's worth investing in a little just for the sake of diversifying one's assets? Or is it junk.

 

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It's impractical to buy physical. At around $3 per pound, even if you want to invest $1,000 it's going to result in quite a heavy pile. And how and to whom will you sell it? What is the bid/ask spread? It's too common a metal compared to gold and silver.

 

Currently the copper in pre-1982 pennies is worty 1.96 cents. So, I save them. Copper will stay cheap until the economy comes back, and who knows when that will be.

 

I kind of agree with Cloud....You'd have to have a literal mountain of it. I do know it's fun to own a few bars of copper just to show to friends, who think a $12 bar is priceless!
Guy~

 

While you can't legally melt US Cents or Nickels, it is an interesting play. There is no downside -- its always worth face. As a hedge, if the dollar remains weak, its worth more than face, its the dollar strengthens the face value buys more.

All you need is a couple of tons of it to make much of a difference

 

I have kept every copper cent that I have come accross searching through bags of cents for about a year now. I have also been watching ebay prices of lots of 5000 copper pennies. The prices of these have been doing pretty good lately http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=170401792465&ssPageName=STRK:MEWAX:IT this one made a $38.05 profit. I have about $1450 in copper pennies saved up now. If I can sell them for a $35 profit each thats about $1000 I could make

 

The pennies are getting scarce. I'm starting on nickels, they're worth .04, so if copper and/or nickel goes up much they'll be over face.

 

so should i hold on to all of the pre 82's i hoarded? or get rid of em?

 

There are some copper mining stocks that are a lot more interesting than buying physical copper.

 

If its not inconvenient, and you don't really need the money, I'd hang onto them. In 5-10 years they'll be worth a dime apiece.

 

Personally, I like to roll search pennies and keep all the pre-82 copper pennies until someone comes along willing to pay my prices for them, but until that day comes, I'm keeping them, which my prices are measured in price per roll above spot, which, at 98 cents per roll and me wanting to get 10 cents per roll over spot for mixed date, "junk copper", 40 cents per roll over spot for 1970-1982 coppers (which are rolled by date) and 75 cents per roll over spot for 1959-1969 pennies (also rolled by date), it'll be awhile before I sell, especially since those prices don't include shipping.

 

Might not be the BEST thing to invest in, but some of the copper bullion can be pretty!

 

The gov. says melting down pennies is now against the law. But, why melt them down? Just remove them from circulation. And if they want their darn copper back, they'll have to pay the $.05 a piece when the price of copper reaches $7.5 a lbs or they won't get their darn pennies back. After all, once you own them, they are yours and you set the price. Don't like the price....don't sell.

 

I don't think this is a serious question.

I don't think this is a serious question. Makes about as much sence as investing in wood or something.

 

I cannot think of a more waist of time than investing in copper on

I cannot think of a more waist of time than investing in copper on anything of a personal level. This is stupid. If you had big investment plans for copper mine or something that would be different but putting copper in the same collecting venue has rare coins or bullion is absolutly stupid IMO.

 

Current price for processed #1 and #2 mixed scrap metal delivered to the mill under my November contract is $195.00 per gross ton. Which is 12.5% below October which was 11% below September.

I went from 1500 gross tons delivered in August 2008 down to 300 gross tons delivered in October 2008. From November 1st, 2008 to May 5th, 2009 - I delivered 0 tons to the mill. #1 bushling ,which was bringing $700.00 to $800.00 per gross ton in the Summer of 2008, Didn't take it but was offered $210.00 for the same material this month.

As for copper - 2004 it traded for about $1.50 per pound - right now it is trading at around $3.00 - not sure if you could can call that cheap?

 

http://www.nj.com/news/index.ssf/2009/08/clients_say_edison_jewelry_sto.html

 

I agree that for metal held in a Comex warehouse, there is virtually no chance that it will be lost. But it's important for people to realize that for most other custodians, including banks, there is a danger. If the institution runs into financial trouble, you just become another unsecured creditor.