Investing in Copper? [Archive] - Glock Talk

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LSUAdman
03-14-2012, 13:19
First let me start off with no, this is not a joke thread and no, I am not planning on buying a mountain of copper.

Okay, that said - I've been researching PM costs, trying to find a good angle to start picking up some silver (yeah, yeah too late, I get it) and other metals to hold on to as investment purposes, and something that kept popping up was copper!

So, googily I went to eBay to see what the pirates were selling. For between $15 - $30 you can get a .999 pure bar of...copper. One full kilo.

I've done a little research, and the basic consensus of PM collectors and investors is that this is totally a waste of money. Obviously the sellers are putting out the sales copy of "This is tomorrow's silver" and "Copper only has room to grow!"

That said, out of all the overly positive and completely negative, I did read a few interesting facts. Apparently the US government is hording copper and creating a "copper reserve." The article cited that certain people in the administration were concerned that India and China were developing more modern infrastructure projects and that copper mining was not keeping up with the demand.

Another article (which had nothing to do with copper investing) stated that by 2014 copper mining would have to double or triple to keep up with demand.

Finally, a third article and posts on a numismatic board (coin collectors) stated that current copper prices are based on industrial and "trash" copper, not pure copper. What this means is that while copper prices for investments that are traded are low but physical copper prices are much higher - not sure I really get that.

So, all of that said, what do you guys think about copper as a long term or legacy investment? For long term, I am talking about generational investment - something you pass on to your kids, etc.

What about SHTF? It seems that every time there is a hurricane here on the coast we have roving bands of people stripping wires, AC coils, etc.

It just seems to me that while gold and silver are "pretty" metals, and have use in high tech industry, copper and it's utilitarian nature could make it a useful comodity.

Or would it be like investing in lumber? :rofl:

hammerkill
03-14-2012, 13:40
Forget copper from ebay. Too expensive. The only way to save copper is through scraps you accumulate through the years. With copper theft through the roof expect to be scrutinied when to take it to the scrap dealer. Laws are getting tougher every year.

LSUAdman
03-14-2012, 13:50
Forget copper from ebay. Too expensive. The only way to save copper is through scraps you accumulate through the years. With copper theft through the roof expect to be scrutinied when to take it to the scrap dealer. Laws are getting tougher every year.


I'm seeing this. I went to Amazon, and saw some cheap ingots (and silver grams for as low as a penny). I thought, what the heck. Ordered 2x kilo copper bars, 20x 1gram silver ingots, 20x copper morgan dollar copies - just for fun. Total cost was $25, plus $250 shipping :rofl:

Man, metals are getting on my nerves. Impractical to get into and what is up with all the minimums and high shipping costs?

/rant

DoctaGlockta
03-14-2012, 14:02
Invest in copper plated lead.

LSUAdman
03-14-2012, 14:03
Invest in copper plated lead.


Got ya covered there. Problem is, I just keep losing them. :cool:

cowboy1964
03-14-2012, 14:38
I see no advantage over silver and plenty of disadvantages.

hammerkill
03-14-2012, 15:03
LSU, wait awhile because the gold bubble may burst. Maybe

http://www.shtfplan.com/precious-metals/the-bull-run-is-over-analysts-predict-gold-will-plunge-below-1000_03052012

Fallout
03-14-2012, 20:01
Copper prices are very much controlled by supply and demand in the construction world. Wo
rking part time for several years as an electrician i have seen in just the last 7 years go from the low two dollar range for #1 copper to over 4.50 then fall back down again and slowly rise back up. biggest contributor to demand is china. even there economy is not immune however. if times where going to stay good long term then it may not be a bad investment if u were paying scrap prices for your supply. when oil gets back in the upper 140 to 150 dollar range that demand is going to dump and your investment will to. if u want to see what prices are for copper find a large scrap yard close to you call them daily and check pricing. 15 to 30 dollars for just over two pounds of copper is robbery just go down to home depot or lowes and buy some 500mcm wire and save yourself some cash. Also be wary that prices quoted are often for TL or truck load quantities. LTL quantities are much lower.

GAU-8
03-16-2012, 19:15
copper ingots and coins are just silly as far as investing. Copper would need to be like $16 per pound before you would break even on the ones I've seen. They look cool but that's it.

I think the best way is to save scrap copper when you can get it. OR buying copper pennies is a very good way to have copper. You can get $100 face value in pennies for about $175 and you are actually buying copper for way under spot. The metal alone is worth over $250. The trick of course is you can't melt the pennies but in the end that won't matter much. Just think about junk silver coins. They trade over spot for silver even though you can't melt them either. So the cheapest copper out there is pennies.

jarubla
03-16-2012, 23:17
..trying to find a good angle to start picking up some silver (yeah, yeah too late, I get it) and other metals to hold on to as investment purposes...

I don't think you are too late to join the silver bullet. Would it be awesome if we'd jumped on when silver was like $4/oz? Oh yeah. I will continue to buy it because it makes sense to diversify. However I will continue to contribute to my 401K and ESPP because I don't have a crystal ball. I want to retire some day, so I do the best I can. I try to plan for contingencies, but no plan is foolproof.

I think PMs (especially silver) still have a future ahead for them. Between the maufacturing application, the record high consumer demand, and a shaky dollar/euro I see solid PM performance over the next ten years. Buy silver on the dips (google 'current silver price' for the low points) and don't look back.

-Jay