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copperbullion
Penny Pincher Member
Australia
136 Posts |
 Posted - 11/26/2007 : 07:05:19
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Copper as bullion is coming!
First there was gold bullion, then silver… lookout… copper is coming! It does not seem that long ago to me that you could buy a kilo bar of fine silver for under $200, but that has all changed now. In my younger days I used to own quite a bit of gold and silver. I was young and single and it was no big deal to buy a gold sovereign or a kilo bar of silver a week and still have plenty of my pay packet left over. How much times have changed. Currently here in Australia, a kilo bar of silver is just shy of $600 and a sovereign is around $250. It is not so easy for me anymore (to buy weekly) with housing costs, kids etc…
There are people like myself who are always interested in hoarding things of value, and I predict that copper as bullion is about to arrive, in fact there are already a few companies around the world who are starting to realise this. And copper REALLY is bullion, it is one of four metals that can be classified as bullion. They are gold, silver, copper and platinum. These metals are classed as bullion because they are monetary metals and are used to make alloys for coin production, as well as bullion bars for investment purposes. Copper is in the same column of the periodic table with gold and silver. Elements in the same column have similar properties. Like gold and silver, copper is a soft metal and has a metallic luster.
I believe copper has an excellent investment potential. The price has been rising strongly now for several years and there has been huge demand coming out of Asia and China. Copper currently has an average annual production of 18m tonnes. At current prices, one full years production could be purchased for U.S 140 billion dollars. To put this into perspective, Central banks around the world injected an estimated $300 billion dollars of liquidity into credit markets in a couple days of August 2007, which was enough to buy two full years of the world’s entire copper production! Currently, the London Metal Exchange (LME) has only around 3 to 4 days supply (140,000 – 210,000 tonnes) of copper. Even a small move by the public to purchase investment copper as a "store of value" could push the price of copper much higher. As inflation increases, mining costs could also add upward pressure on the copper price. So copper may be looked at initially as a “poor mans” gold or silver, but in times of economic hardship or rising inflation, silver often outperforms gold because it is more affordable. I believe this could be the case with copper, instead of being a “poor mans” choice, it could be the smartest investment of all.
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n/a
deleted
85 Posts |
Posted - 11/26/2007 : 14:09:42
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It burns me when PM snobs say copper is not bullion! |
"The key to building wealth is to not lose money." - Warren Buffet |
Edited by - n/a on 11/26/2007 14:10:27 |
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fiatboy
Administrator
912 Posts |
Posted - 11/27/2007 : 01:03:38
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I see bullion as a continuum. Some metals are considered "money" more than others. However, not all metals are money. Iridium, like platinum and palladium, is a member of the platinum family of metals, and like platinum and palladium, it's rather pricey, but iridium doesn't have its own ISO currency code. Similarly, rhodium is insanely precious and valuable, but I honestly can't call it money. And as bullion, it isn't sold internationally by central banks. (although wouldn't it be fun to have some bars of rhodium?  )
Gold is obvious. It's on the far end of the spectrum. Copper is somewhere near the other end. Yes, it's money. Yes it is bullion, but not to the degree that gold and silver are.
I haven't yet determined if monetary value and industrial value are mutually exclusive.
I also think that some readjustment is due. I think that copper will slide closer to gold and silver on the monetary-bullion spectrum, but palladium may slide the other way. (Although I'm bullish long-term on palladium due to its industrial promise.)
After all the noise created by fiat-derivative-credit nonsense quiets down---which may be a while, I think copper will take its place as bullion alongside silver and gold. |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
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copperbullion
Penny Pincher Member
Australia
136 Posts |
Posted - 12/04/2007 : 07:18:21
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| Copper is... and always has been part of the monetary system! |
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n/a
deleted
43 Posts |
Posted - 12/04/2007 : 18:17:34
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| to me anything that can be made into a coin of some sort is money to varying degrees. the value of coins is based on what it is made out of. some things will be worth more than others because of certain factors. copper could be used small transactions(it already is that's why we're here). |
"Preserving coinage by the pound" |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 12/04/2007 : 18:36:41
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| Not to get too far off topic, but hypothetically (& for fun) speaking, what denomination should a one ounce copper coin be in today's U.S. dollars? For example; should a one ounce copper coin be a half dollar? Now consider that if you pegged the coin's melt value at 100% of it's face value it wouldn't be long before we would be hoarding it. But if its melt value was let's say 10-50% of its face value it could circulate undisturbed for at least while. True, it wouldn't take inflation too long to catch-up though. Remember too that even now the zinc cent is at about 60% of melt and few of us are hoarding them. |
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Copper as bullion is coming!
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