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Mcprice302
Penny Collector Member
USA
404 Posts |
 Posted - 02/22/2010 : 19:59:43
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I've been selling a few odd and end car and racing parts that I don't use anymore lately and have just been saving the cash. I've got an opportunity to purchase some steel and (estimated around) 4000 lbs. of sheet aluminum at $.40 a lb. which is the advertised price at the moment locally at the scrap yard. However, close ties with owners and such enable me to get more than the average joe will, and I've been quoted $.50 a lb. personally right now.
My question to all of you is would you take the immediate 25% return or do you feel that like silver and copper, aluminum might see a higher price in the coming 6 months or so? If so (or not) could you please explain why you feel this way.
The steel will be used to add weight to junk cars which will bring more per lb. than selling it as steel in case you are wondering. Any advice is welcomed.
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dakota1955
1000+ Penny Miser Member
2212 Posts |
Posted - 02/22/2010 : 20:12:13
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| do you have a storage problem? Or do you have room to keep metals for up to a year or two until the price come back. |
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Mcprice302
Penny Collector Member
USA
404 Posts |
Posted - 02/22/2010 : 20:16:52
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| I own 3 secluded acres and have plenty of privacy so storage isn't a problem. I would probably hide it behind the garage as well so it would be out of sight. Do you think it will take as long as 1 or 2 years to see anything substantial? I was hoping for less than 6 months, lol. |
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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
Posted - 02/22/2010 : 20:21:38
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What kind of shape is the Al in? Any possibility of getting a better price by selling it to somebody who would actually use it? Like a fabrication shop or something along those lines...
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Mcprice302
Penny Collector Member
USA
404 Posts |
Posted - 02/22/2010 : 20:30:56
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| The majority of it is aluminum ridge caps and siding. It wasn't taken care of when removed so it's pretty mangled up, and the only option I can see for it is scrapping it. |
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hobo finds
Penny Hoarding Member
838 Posts |
Posted - 02/22/2010 : 20:31:16
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| Sell and sell. Take the quick cash and invest in more copper and silver... |
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dakota1955
1000+ Penny Miser Member
2212 Posts |
Posted - 02/22/2010 : 20:37:11
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| I would sell now also because I think that it will take longer than what you are willing to wait. |
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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
Posted - 02/22/2010 : 20:42:54
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quote:
Originally posted by Mcprice302
The majority of it is aluminum ridge caps and siding. It wasn't taken care of when removed so it's pretty mangled up, and the only option I can see for it is scrapping it.
That's about the lowest grade Al there is. I think I would take the profit and buy Ag with it.
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Mcprice302
Penny Collector Member
USA
404 Posts |
Posted - 02/22/2010 : 20:58:24
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| I was feeling the same way. In fact I think it will actually go down before it comes back up again. I'm somewhat guilty of investing on emotions at times though, and just wanted some outside feedback. Unless someone has sound reason to be bullish about short-term gains, I think I'll take the advice already given and make a quick profit. Thanks for the re-assurance everyone. |
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 02/22/2010 : 22:34:07
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The other advantage of selling it right away is you only have to move it once.  |
If your percentages are low.. just sort more. If your percentages are high.. just sort more.
Now selling Copper pennies. 1.6x plus shipping. Limited amounts available. |
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simplicitycounts
Penny Hoarding Member
USA
535 Posts |
Posted - 02/22/2010 : 23:14:42
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| I'm with hoard, when you load it take it directly to where you are selling it. The less time you have into it the better. If you end up moving it 2-4 times are you really making any more money? |
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cptindy
Penny Hoarding Member
572 Posts |
Posted - 02/23/2010 : 08:41:23
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Flip it for confirmed cash in hand! Save the cash for other investments like Silver and Gold!
One more thing:
It does not seem all that profitable to begin with considering you are handling a very temperamental product. One cut worth stitches and no more profit. One flat tire, one mishap of any sort and your profit is weary. I never pay more than 50% value for scrap of any sort after many of those experiences. I am not saying don't (only you can decide) just that you are stretching your capital on a product that can be had for less.
IMHO |
"It is the nature of the human species to reject what is true but unpleasant and to embrace what is obviously false but comforting"
" The average man doesn't want to be free. He wants to be safe."
H.L. Mencken
http://silver-news-today.com/ |
Edited by - cptindy on 02/23/2010 08:52:41 |
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Mcprice302
Penny Collector Member
USA
404 Posts |
Posted - 02/23/2010 : 16:54:10
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| Yeah, the margin isn't huge on this one. As many rained out work days as I have been through recently though, I'm just ready to break a little sweat. I cant stand sitting idle, so I'll take my chances. Still, app. $250 profit won't be bad for half a day of hauling I dont think. |
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Wanted: Your thoughts on future aluminum prices
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