Should I invest in a 1kg bar of copper?

[Robert]

Hi there

I'm new to Copper, so I was thinking of buying a 1kg bar (maybe even more)? Thinking goes like this, Copper is being used up VERY quick around the world (just like Silver), it has a purpose just like Silver i.e. It can be used for other stuff. So should you buy Copper now as its cheap.

look forward to hearing from you guys/gals

Robert

[kregener]

http://i152.photobucket.com/albums/s167/Kregener/Posting%20Tools/FUNNY.jpg

[willie pete]

with base metals, I think it's more up to one's own preference, personally I don't own any Cu, not even cookware.. :D ...on another note...Welcome aboard Robert ....and out of curiosity, were you ever on another board? ...BS maybe?

[RJB]

The premiums are usually astronomical. "Buy" U.S. coins for under spot price and without premiums. A nickel is worth about 6.5 cents in metal. and a pre 1982 penny is worth almost 3 cents a piece.
Here's a coin calculator.
http://www.coinflation.com/coins/basemetal_coin_calculator.html


http://gold-silver.us/forum/other-metals/the-'hoarding-nickels'-thread/

http://gold-silver.us/forum/other-metals/the-copper-penny-thread/

[Robert]

... whats BS, willie pete? Is BS another forum? In answer to your question, no, this is the 1st Gold/Silver etc forum I've ever been in.

Was hoping to get it really cheap, glad you guys made it clear about Copper, so its a No no.

[cedarchopper]

If I were to "invest" in copper I would looking to buy it in a useful form (new electrical wire...all gauges, and new copper pipe), and buy it cheap. I see good deals on craigslist all the time. Of course, pre-82 pennies are a good way also...money is a useful form ;]

[RJB]

Was hoping to get it really cheap, glad you guys made it clear about Copper, so its a No no. No, It's a yes, yes. :) Just avoid pricey bullion. Get useful wire and cheap copper coinage. Nickels are 3/4s copper 1/4 nickel. This alloy is used a lot in maritime construction.

[cedarchopper]

just a quick look on a craigslist search:

http://victoriatx.craigslist.org/bfs/2114435611.html

http://waco.craigslist.org/mat/2109488647.html

[kregener]

"Invest" in a 1k count of LEAD instead.

It will serve you better before too much longer.

[StackerKen]

Robert.
I think copper is probably a good investment.

Just don't pay more than 4 or 5 bucks a pound for it.(spots around 4.50 now)

If you do like RJB said and buy nickels (at face) you can get copper less than spot price
http://t2.gstatic.com/images?q=tbn:0nxyyLlkyEfQlM:http://www.collectibles-articles.com/collectible/collectible-image-large/2010-d-nickel-100-uncirculated-bank-box_260672899225.jpg&t=1

[Robert]

Here is a 1KG bar I've seen in eBay, he/she is selling it for £29

"WHY NOT GRAB YOURSELF A BARGAIN, COPPER IS ON THE UP UP UP!

THIS 1 KILO (2.2 lbs) COPPER BULLION IS PURE .999, IT IS FROM THE USA. THIS A LIBERTY HEAD COPPER BULLION AND IS DATED 2010

Recently gold and silver prices have increased sharply and therefore the general public finds it difficult to afford silver and gold. This is why buying copper bullion is the way to go! It is cheaper and therefore easy to afford, and as prices increases with enormous demand in China, its a win win situation for copper investors.

Copper's spot price has recently increased to an all time high and the only way is up. Grab yourself this fantastic copper bullion. Copper surged to records in London and New York (30/12/10) on speculation the global recovery is gaining pace.

Shipping to the UK only"

-- So what do you think of this?

[RJB]

Here is a 1KG bar I've seen in eBay, he/she is selling it for £29-- So what do you think of this?
That's $45 per kilo.

Copper is selling for $4.38 a pound, so that is $9.64 a kilo. You're paying a 35 dollar premium!!!

[willie pete]

I'd rather buy Ag or Au :D

[kregener]

Lots of metals have industrial value.

But only a few are a store of wealth.

Copper ain't one of them.

[StackerKen]

Buy Silver Robert

[Robert]

You guys are great help, thanks for all your wisdom!!

[madfranks]

Don't disregard pre-1982 copper cents either! The mint changed the composition of the cent in 1982 to be 97.5% zinc; in contrast, pre-82 cents are 95% copper, and the current copper value of each of those cents is almost 3 cents. So for every one cent you spend on a copper penny, you're getting three cents in copper metal! Many of us, including myself, have been keeping all of our copper cents we get in change for years, and I have a few large mint bags full of copper coins. If you're bored and looking for a hobby, buy boxes of pennies from your bank and sort out all the copper ones. Before you know it you'll have more copper than that bar you showed us above and will have paid 1/3 of copper price for them!

[MNeagle]

Then there's this in today's news:

Copper Market 2011 Deficit May Be as Much as 600,000 Tons, JPMorgan Says (http://www.bloomberg.com/news/2011-01-15/copper-market-2011-deficit-may-be-as-much-as-600-000-tons-jpmorgan-says.html)

[Robert]

If I was to buy Copper now, who or what places would buy it off me? I've seen 101 places that would buy Silver/Gold, but not Copper?

thanks

[JohnQPublic]

Then there's this in today's news:

Copper Market 2011 Deficit May Be as Much as 600,000 Tons, JPMorgan Says (http://www.bloomberg.com/news/2011-01-15/copper-market-2011-deficit-may-be-as-much-as-600-000-tons-jpmorgan-says.html)



Now that they cornered the market in copper!

Is this what you were referrnig to?

“Copper is also increasingly being seen as scarce and is in many ways adopting some store of value attributes normally associated with precious metals,” he [Jansen] said in his presentation.

[Robert]

JohnQPublic, i was thinking if I was to buy a 1kg bar of Copper, keep it for 2 or 5 years, then decide to sell the bar, who would buy the bar? I have not seen a place/company that buys it from you i.e.

http://www.bullionbypost.co.uk

They will buy Silver/Gold from the seller, but not Copper, note, this is just an example.

[madfranks]

Here's a place where you can buy and sell your copper - http://www.portlandmint.com/information.php

Here's their buy-back policy: If you chose to store your copper or nickels, in our contracted secure depository, we offer you a buy back option. How this works is you simply call a Portland Mint respresentative at 1 - 888 - 444 - 1089 and they will issue you a buy back price. Your payment will than be sent to you via a check and mailed within 48 hours. If you wish to have your funds sent via a bank wire or overnight mail there will be a $25 fee deducted from your confirmed price. Also any unpaid charges, such as storage fees, will be decucted from your confirmed price.

[Robert]

Thanks madfranks, correct me if I'm wrong but they look after your Copper, what if I want to sell a bar to bullion shop i.e. like a Silver/Gold shop (or online).

[MNeagle]

Where do copper thieves go to sell?

Junkyards?

[madfranks]

Thanks madfranks, correct me if I'm wrong but they look after your Copper, what if I want to sell a bar to bullion shop i.e. like a Silver/Gold shop (or online).


Copper, although a valuable metal, is not yet really recognized as a bullion type metal. Most coin dealers simply don't deal in copper bullion. You ought to call a few dealers in your area and simply ask them if they buy copper bullion, and what they pay.

[bellevuebully]

Try storing silver at $29/oz and then come and tell me how you would feel storing copper at $5/lb. Completely overwhelmed would be my guess.

[StackerKen]

The only place I can think of that would buy copper is a Scrap Metal recycling company

But you could sell it on ebay

[willie pete]

Thanks madfranks, correct me if I'm wrong but they look after your Copper, what if I want to sell a bar to bullion shop i.e. like a Silver/Gold shop (or online).


Copper, although a valuable metal, is not yet really recognized as a bullion type metal. Most coin dealers simply don't deal in copper bullion. You ought to call a few dealers in your area and simply ask them if they buy copper bullion, and what they pay.




Cu is a base metal....Au,Ag,Pt,Pd are Precious metals, it'd be my opinion that a coins shop probably wouldn't be interested in a base metal

[Sparky]

Apmex bought and sold for a while, when copper first reached $4/lb and nickel was over $20/lb. I believe they have stopped. At some point in the future, many of the au/ag dealers will deal in copper.

But you have to ask yourself what you're trying to do. You're showing us a kilo selling at $20/lb when spot is $4.50/pound. Are you kidding me?

There are two reasons to have copper. One is a total paper SHTF where metal will have disproportionate purchasing power for a while. The other is speculation that copper will soar in an inflationary environment, and you can make a reasonable profit for holding so much bulk. If copper goes to $20/lb and you bought it for $1.50/lb (e.g. pre-1982 pennies), then maybe it's worth your while. But if you buy it at $20/lb, you need it to go to $100/lb before it starts to become a reasonable investment. Not likely.

More simply, why pay $20/lb, when you can get it for $1.50/lb (pennies), or $3.40/lb (nickels)?

[RJB]

Apmex bought and sold for a while, when copper first reached $4/lb and nickel was over $20/lb. I believe they have stopped. At some point in the future, many of the au/ag dealers will deal in copper.Yeah, they don't even do any numismatic coins. It's straight precious metals bullion and coinage.


There are two reasons to have copper. One is a total paper SHTF where metal will have disproportionate purchasing power for a while. The other is speculation that copper will soar in an inflationary environment, and you can make a reasonable profit for holding so much bulk. If copper goes to $20/lb and you bought it for $1.50/lb (e.g. pre-1982 pennies), then maybe it's worth your while. But if you buy it at $20/lb, you need it to go to $100/lb before it starts to become a reasonable investment. Not likely. Good points. Also remember that in the old days 2000 pennies = 1 ounce of gold and 1 penny = a few eggs. Now it's almost 150,000 pennies = 1 ounce of gold and 15 pennies = 1 egg. Someday things may balance back. Also copper may work as change even more so for silver in a SHTF scenario.


More simply, why pay $20/lb, when you can get it for $1.50/lb (pennies), or $3.40/lb (nickels)?Listen to this wisdom Robert. If you live in England try to find the equivalent copper coin to the American penny and nickel and find the metal content. NOWHERE ELSE CAN YOU BUY UNDER SPOT AND WITHOUT PREMIUMS!!!!!!!

[steyr_m]

There are two reasons to have copper. One is a total paper SHTF where metal will have disproportionate purchasing power for a while. The other is speculation that copper will soar in an inflationary environment, and you can make a reasonable profit for holding so much bulk. If copper goes to $20/lb and you bought it for $1.50/lb (e.g. pre-1982 pennies), then maybe it's worth your while. But if you buy it at $20/lb, you need it to go to $100/lb before it starts to become a reasonable investment. Not likely.

I would have to agree with you. I've been sorting/saving pennies for a few months now. I'll buy $20 of penny rolls and sort out the copper from the zinc and steel (yes, our pennies are made of steel now [canada]) even though some people think I'm a bit nuts. On a good note, the yield is about 50% copper to zinc & steel. Will it be worth my sorting efforts? Time will tell when SHTF.