I'm looking for a good investment and was wondering about the future of copper or copper bouillon as an investment. I know gold is, but that can be quite pricey. Thanks.
I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research.
Agree with what John said.. And, no of course you can't invest in copper bullion. Copper sells for $3.40/lb. That means to make a significant investment in copper you need tons of it. What are you going to do, put it in your back yard? Then there's the what are you going to do with it to make money question. Suppose Copper goes up to $5/lb and you want to sell the copper you have stacked in your backyard. Who is going to buy it? The junk dealer who will give you $3.40/lb and charge you to haul it away. You could invest in copper by buying LME or COMEX copper contracts, but they don't look very bullish to me. I'll bet big that you have never traded a futures contract in your life. Edit: @underexposed - That stuff about looking at commodity prices before looking at commodity stocks. I believe that there would be a huge market for a fund that trades mispricings between commodity stocks and commodity futures prices. I'm sure I could raise $100M for such a fund pretty easily if I could get a product together. I can't and I have tried hard. I think the daance between those is really complicated. If you can show me real numbers and defined trades (like aa mechanical system), I would be very interested and pay you well. Note that such a fund would be really low risk (presumably) and uncorrelated with both stocks and commodities. There would be huge market for it. I know people who would allocate to it immediately.
Copper is still a commodity. A pound of copper will still be a pound of copper but a share of Apple in 1996 is very different from a share of Apple today. Investments are supposed to improve in value. An investment in a company is an investment in a business intended to make a profit, so long as it makes a profit, the investment improves in value so investments in companies are designed to improve in value. An investment in a metal is an investment in storage costs and in a spread, there is no natural reason for an improvement in value other than perhaps some industrial demand for which there's plenty for copper. Essentially metals are not investments, they may have a place in a portfolio to adjust risk but they by themselves are not an investment. Note that although gold's price is high, had you bought gold 30 years ago, you would've made 2.33% per year on it all while the stock market returned 18% to 22% per year, Coca-Cola returned 13.5% per year over those 30 years.
Is Copper A Good Investment
