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JerrySpringer
Penny Pincher Member
101 Posts |
 Posted - 05/11/2008 : 10:44:23
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Only thing I think could cause copper and metal prices to drop is US dollar strengthening and a sharp increase in interest rates. Did I get this wrong? In the late 70's we had a high interest rates and high gold prices. Does history repeat or rhyme when metals are concerned?
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Non-wise man
Member
86 Posts |
Posted - 05/11/2008 : 18:13:25
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In theory I think this can actually work but only temporarily. Simply put there are more U.S dollars, internationally speaking, to more than buy our entire planet's net worth and that doesn't include all other foreign currencies. Eventually, the true value of the almighty buck will reveal itself. Did I mention diminishing commodities?
We wise as we age giving us a better understanding we're not wise. |
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TenBears
Penny Hoarding Member
529 Posts |
Posted - 05/11/2008 : 18:24:12
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| I would view such a drop favorably, at least for a few more years. It would limit interest in this little hoarding hobby of ours. |
"Rich," the Old Man said dreamily, "is not baying after what you can't have. Rich is having the time to do what you want to do. Rich is a little whiskey to drink and some food to eat and a roof over your head and a fish pole and a boat and a gun and a dollar for a box of shells. Rich is not owing any money to anybody, and not spending what you haven't got." Robert Ruark
there are too wild Indians...
there are too wild Indians...
there are too wild Indians...-----still taunted
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Ardent Listener
Administrator
USA
2062 Posts |
Posted - 05/11/2008 : 18:37:56
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| I think we will see a short term drop in copper prices. We who have been around here have seen them in the past. They will tell you the copper bull is not only dead but that he is being cooked out on the BBQ. Then it will start all over again. |
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Copper Catcher
Penny Pincher Member
USA
152 Posts |
Posted - 05/11/2008 : 19:17:15
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| As long as a penny is worth a penny then the only down side risk is the "time value of money" i.e. interest you are not getting by hording the coins and not having the money on deposit. This is assuming you got your pennies out of circulation and did not buy them for me than face value. What people can afford to just keep on hand and not worry about will vary greatly from person to person. Looking at a recent survey...some on this board have over $10,000 face in pennies and some with only a few dollars. A drop in copper prices only matters if you plan to sell then! |
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JerrySpringer
Penny Pincher Member
101 Posts |
Posted - 05/11/2008 : 20:10:56
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| I play devils advocate and think they will drop in the short term but rise long term. So many variables are in motion though. Energy costs being a major IMHO. |
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NDFARMER
Penny Pincher Member
USA
158 Posts |
Posted - 05/11/2008 : 20:22:11
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| I would look at it as a buying opportunity. If I can stack up $25.00 boxes for just a little over face value without having to go to the bank and pick them up, sort them and then dump the zinc that would be fine with me. |
COPPER - the "poormans" precious metal!!! |
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topeka
Penny Pincher Member
159 Posts |
Posted - 05/11/2008 : 21:53:41
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I would like a little breathing room time wise.
Anything with intrinsic value CANNOT stay down in value (USD)
What is amazing is that the USD has any value at all. |
Silver..poor mans gold
Copper..peasant silver |
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Cerulean
Penny Collector Member
USA
471 Posts |
Posted - 05/12/2008 : 07:33:32
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| I view base metals prices as a bellwether of China's economic growth. If copper prices stayed down, I'd perceive that as a sign of a cooling Chinese economy, possibly from importing USA's malaise. |
RUNNING TOTAL
---------------------------------------
15114 zincs (1982-2007) 75.5%
4792 coppers (1959-1982) 23.9%
92 wheats (1920-1958)
32 Canadian (1960-2005)
1 dime (2004)
Sorting Map: http://www.frappr.com/?a=constellation_map&mapid=68719599394
Wanna take money away from the Fed? Spend dollar coins!
Listening is the linchpin of democracy. |
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lanispet
Penny Pincher Member
USA
133 Posts |
Posted - 05/12/2008 : 10:35:35
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| i'd view it as temporary, and rather welcome, actually... i really need to re-wire my garage |
Wait, don't throw that away... I can use that! |
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moboman
Penny Collector Member
USA
473 Posts |
Posted - 05/12/2008 : 22:05:03
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I'd get more pennies!
It would certainly discourage a place like jackson metals from sorting.
As for the lower copper prices, I'd be very happy, because this is the real problem behind the housing/building slump according to the electricians. "People just cant afford to wire their buildings". |
I throw away used penny wrappers "by the ton" |
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fb101
Penny Pincher Member
USA
198 Posts |
Posted - 05/13/2008 : 11:18:31
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Isn't wiring only about 1-2% of the cost of a home?
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WilliamC
Penny Collector Member
USA
448 Posts |
Posted - 05/13/2008 : 13:37:32
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I can't see any circumstances in which the price of copper would fall without the value of the dollar increasing, so the price of other commodities would fall as well.
That would be fine with me since it would make the cost of living less. Therefore my family would have more disposable income to pay off our house early, make home repairs, and keep our two cars in good repair. I might even be able to invest more than I already have in metals too.
But in the long term the US dollar will go the way of all paper money and become essentially worthless. It's only a matter of time. If it takes a bit longer than I think it will that will be fine by me.
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Sorting In Northwest Mississippi |
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How would you view a major drop in copper price?
