Lets talk about Copper!!!

[Ivan]

Hey guys, thinking about buying some copper. what do you guys think!! here is few charts.

[nosirrahx]

It is a royal PITA to store enough to make it worth it and it is a royal PITA to get a decent over spot price.

If you could buy a pallet of copper for a little over spot then it might be worth it, but who is actually going to do that?

That being said I have 50 lbs myself but I am not trying to make it $ with it, its just cool to own. I also have large quantities of tungsten, titanium and other metals, none of them are investments.

[Ivan]

Copper - A Metal Used Through The Ages


Copper was one of the first metals ever extracted and used by humans, and it has made vital contributions to sustaining and improving society since the dawn of civilization. Copper was first used in coins and ornaments starting about 8000 B.C., and at about 5500 B.C., copper tools helped civilization emerge from the Stone Age. The discovery that copper alloyed with tin produces bronze marked the beginning of the Bronze Age at about 3000 B.C.

Copper is easily stretched, molded, and shaped; is resistant to corrosion; and conducts heat and electricity efficiently. As a result, copper was important to early humans and continues to be a material of choice for a variety of domestic, industrial, and high-technology applications today.


http://en.wikipedia.org/wiki/Peak_copper


How Do We Use Copper Today?


Presently, copper is used in building construction, power generation and transmission, electronic product manufacturing, and the production of industrial machinery and transportation vehicles. Copper wiring and plumbing are integral to the appliances, heating and cooling systems, and telecommunications links used every day in homes and businesses. Copper is an essential component in the motors, wiring, radiators, connectors, brakes, and bearings used in cars and trucks. The average car contains 1.5 kilometers (0.9 mile) of copper wire, and the total amount of copper ranges from 20 kilograms (44 pounds) in small cars to 45 kilograms (99 pounds) in luxury and hybrid vehicles.

[nosirrahx]

Do the volume math on doubling your $ with gold, silver and copper.

Unless you plan on doubling a couple of hundred bucks, copper is a huge problem to store.

Calculate the volume of $5000 of the three metals, it becomes obvious that copper as a store of wealth is not a good idea.

The best you are going to do is 6$-7$ a lb so to double copper would likely need to get into the range of 15$ a lb. You would need to store more than 700lbs of copper for a few decades to even have a shot at a double.


You posted a bunch of great info, its just not info that makes copper a good way to make $ for the average Joe.

[nosirrahx]

Think of it this way. Say you get 500lbs of copper for free and it goes to $10 a lb, that is still only $5000. It is more likely that this copper would cost you at least $3000 up front, now you are down to $2000. If it takes a decade, this is $200 a year or a pay raise of less than a dime per hour, all to store 500lbs of copper for a decade.

[Chronic]

i collect scrap. Waiting for higher prices before i sell as salvage.

[nosirrahx]

Quote:i collect scrap. Waiting for higher prices before i sell as salvage.

If you are getting the copper for free you might be better off selling half of it right away and buying some silver, that is the way I would play it at least.

[Ivan]

(04-03-2012 10:02 AM)nosirrahx Wrote:  Do the volume math on doubling your $ with gold, silver and copper.

Unless you plan on doubling a couple of hundred bucks, copper is a huge problem to store.

Calculate the volume of $5000 of the three metals, it becomes obvious that copper as a store of wealth is not a good idea.

The best you are going to do is 6$-7$ a lb so to double copper would likely need to get into the range of 15$ a lb. You would need to store more than 700lbs of copper for a few decades to even have a shot at a double.


You posted a bunch of great info, its just not info that makes copper a good way to make $ for the average Joe.

i see ur point.

[Chronic]

(04-03-2012 10:25 AM)nosirrahx Wrote:  

Quote:i collect scrap. Waiting for higher prices before i sell as salvage.

If you are getting the copper for free you might be better off selling half of it right away and buying some silver, that is the way I would play it at least.

Sorry, i guess i failed to mention, i have many other metals already and not necessarily all scrap. Copper will go up and down in value along with other metals. Thanks but i'll wait.

[nosirrahx]

Tantalum is the metal I have been thinking about as an investment lately. It has a much better $/lb and higher density so it is a lot easier to store than copper. It also has a very nice 5 year $ chart due to its extensive use replacing old capacitor technology. I would love to have gotten in on this one 5 years ago.

[kshymkiw]

There is too much Copper both above ground and below ground to make it a worth while metal.