Copper the base metal to invest in this year

Discussion in 'Commodities Forum' started by SamClemensMT, Jan 8, 2015.

  1. SamClemensMT

    SamClemensMT Well-Known Member

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    It's 2015 and I say you set aside 5 % of your savings to invest in copper. Do it however it suits you: ETF's, mining share, or U.S. pennies, but do it. I'm acting on solid advice from "Good as Gold: How to Profit from the Coming Boom in Copper". This book is free on Amazon and you should definitely read it if you're a serious investor.
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    Last edited: Jan 8, 2015
  2. Rosyrain

    Rosyrain Senior Investor

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    Ok, this needs to be broken down into the basics for someone like me who is a beginner. Are you saying to save actual pennies because of their copper content?
     
  3. SamClemensMT

    SamClemensMT Well-Known Member

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    Well, the book simply is advocates holding copper however you would like. Pennies, Mining stocks, ETF's all are ways to take advantage of an upswing in the price of copper. I suppose pennies would be the simplest method by far.
     
  4. Onionman

    Onionman Senior Investor

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    I guess the question should also be about "when?". The trouble with books are they're never able to time the market and they don't always move in line with particular asset prices. For example, the price of copper fell the most in almost six years overnight as concerns about a fall in Chinese demand ramped up. Who knows how this story will play out but China remains a big part of the story.
     
  5. Rosyrain

    Rosyrain Senior Investor

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    Woohoo, I have a ton of pennies at home in a jar so I am on a good start. The problem is that I do not see getting more than a penny if I went to hand them over as copper. I am sure anyone I was trying to sell them too would look at me like I have lost my mind.
     
  6. My401K

    My401K Well-Known Member

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    I hate to the bearer of bad news but most U.S pennies minted after 1982 are made of zinc. What is it you think your going to do anyway collect a bunch of older pennies and sell them for scrap? I can pretty much tell you that plan probably will not work. You do know it is illegal to melt down currency and sell it for scrap right? :confused:

    Sam you might want to check when the book you are talking about was wrote, right now copper is down maybe about 9% this year, there are some schools of thought that think this could be the beginnings of a deflationary cycle. I don't know if I am totally on board with that thought. Copper has been at the lowest point this Tuesday, it is at a point level it was at in 2009. Have you ever even looked at what the chart looks like? Talk about a perfect cliff to jump off of.

    Seriously people you may want to hang on to those pennies so you can eat after you lose your shirts on this craziness. You would probably do better collecting pop cans for refund.
     
  7. turt

    turt Guest

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    All metals will be volatile. The problem with copper is the fact that the high prices can force the industry to move to alternatives. Consider how much less copper is just being replaced by Fiber alone.
     
  8. Rosyrain

    Rosyrain Senior Investor

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    Thanks for the clarification on copper in pennies. I was really confused at how you would go about selling them for more than the face value. I guess if you are desperate to get some copper, you can start stripping some wires, but that would be more trouble that it would be worth.
     
  9. SamClemensMT

    SamClemensMT Well-Known Member

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    Pennies today are already selling at a premium if they are from a certain year. The fact that say a silver dollar has a face value of a dollar won't prevent you selling it for $16, which is its silver content's value. The same would be true for a penny. Today, in fact, the pre-1990's pennies I know are worth three cents a piece.
     

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