Investing in Copper.. Thoughts?

Sure have a couple grand of copper blocks on standby but look into Palladium.

http://palladiumprice.org/palladium-price-history.html

 

Log in or Sign up to hide this ad.

Copper, like scrap metal, has millions of uses, unlike gold and silver, which have a very limited specific use. I think what is missed here is the fluctuations percentage-wise in the rise and fall of copper prices far out distance that of other bullion metals. Just over a year ago we saw copper hit a record $4 a lb. That would be like gold hitting a high of about $3000 an oz. At least where I live, people were stripping copper wiring from live power lines along busy highways. We'll never see gold reach those proportions.
Guy~

 

What an interesting article, Cloud! Wow. Had me glued to the page.

 

It's a dangerous world out there. If you own gold and it isn't in your possession, there is a good chance you don't own gold.

 

Although construction in our country has slowed down, it's positively booming in China and emerging market countries. There was an analysis done computing the average amount of copper plumbing and wire that would get used for construction in those countries and the upshot was that the long-term scenario for copper was positive although as you say the price can whipsaw rather violently.

As far as physically holding copper, evidently in China pig farmers and other private speculators have quite a sizable stash. One reason they do this is the simple reason that copper is more affordable than PM's.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1B_ZBQfii8Q

 

Not necessarily, if you have invested in gold via a mutual fund, the assets are held in a trust account with a bank as custodian. Even if the custodian bank fails, the trust account is not part of the bank's assets. They are secured and separate.

Also, SIPC coverage protects mutual fund investors in situations where an investment firm is insolvent. All major firms have this coverage, in fact most have bought private insurance to increase limits beyond SIPC limits of $500,000 in investments including up to $100,000 in cash. Note that SIPC coverage covers stocks & bonds, but does not cover interests in gold, silver or other commodity futures contracts or commodity options.
http://www.finra.org/Investors/Prot...nvest/YourRightsUnderSIPCProtection/index.htm

 

What chance is there that the gold bars are tungsten?

 

No one will be able to accuse you of straddling the fence on this issue...

 

I'd generally consider someone involved with copper to also be involved with crystal meth.

 

If you have an investment in a mutual fund, you don't own physical gold and cannot force the fund to redeem your shares for gold. Basically, a mutual fund is a derivative investment in gold.

 

Probably close enough to zero not to worry about it.

 

True, but at this point I don't think that the system will become so broken that I have to worry about actually holding the gold in lieu of its redeemable value in currency.

However, if events start to point in another direction, I would add to my current physical holdings. I'd rather this type of scenario not unfold, since it would imply a massive economic breakdown has occurred likely bringing with it a dangerous psychological environment.

 

Ok. But the original point was that if you purchase physical gold and leave it with any custodian other than Comex, there is a significant risk of physical loss. That point still holds.

 

In an Earlier Thread, which I created , and was Edited because some members took the opportunity to make the thread a political soap box. I was also cited with an infraction of two points , for as the moderator worded it " posting a thread that was to suggestive" of encouraging a political argument . The fact is, Penny's are disappearing from circulation, and The U.S. is increasing it's copper reserves. The fact is, that the U.S. is so rich in copper reserves, but this reserve is in areas where it would be more costly to extract for other technological advancements, they have chosen to "mine" in other countries, namely Mexico and reduce significantly the circulation of the penny. Someone pointed out, in an earlier post here, that not very far off, your copper penny's quite possibly be worth up to 10 cents a piece, and that may not be far from the truth. Now Investing in copper? I would look at some advanced U.S. mining companies that have recently been given authority by other governments, such as Mexico has authorized the U.S. Government to mine for copper within their borders.

GD made an excellent point of reference with regards to "scrap metals" and their increasing demand and increasing values. I could offer some interesting insight into that issue, but for certain there would very clear political agenda's brought to light, and contrasting positions of thought. So we won't go there.

 

someone else said it, the funnest way is to hoard pre-1982 pennies

 

That's true, takes a lot of effort, but very true idea nonetheless.

 

Just go through pennies in your change and boxes at the bank. If you don't care to look through them by hand and also pull out varieties and wheat cents, then just buy one of these automatic copper sorters:

http://www.youtube.com/watch?v=q6dYza7E9_c

The very basic model is about $40 or so, should pay for itself rather quickly if you're selling the copper. Other companies make big industrial strength sorters that sort very quickly but those are several hundred each.

 

where does one sell the copper if melting cents is illegal?

 

Copper doesn't have to be melted to have value. Coins are one of the best and highest uses for copper [and gold and silver]. What is strange is that coin collectors frequently don't recognize this as quickly as non-collectors.

 

what can you do with the copper in cents if you can't melt them? I mean, even if it is a store of copper, it's not a precious metal so it's only use is as a metal which would require some sort of modification... or am I just like not getting it?