Saturday, November 28, 2009

Coppertunities

Today let's discuss copper opportunities, from the other side of the coin. In past weeks I've touted the advantage gained by those first to explore a new investment niche. Specifically copper. Copper pennies, to be even more precise. Those pennies minted prior to 1982 are comprised of virtually pure elemental copper, if you want to overlook the mere 5% zinc component. Start saving those pennies. You'll achieve an inexpensive means of accumulating a form of bullion. Copper is bullion?

For those new to the subject, copper can be viewed as bullion. It is money, and circulates in an easily obtainable, instantly recognizable form. The United States Mint has gone so far as to produce billions of them for our use. It's a no-brainer to buy silver and gold, in order to preserve your purchasing power. After all, gold has long been recognized as a safe haven in times of economic disruption. Hmmm, that would be now, right? Uncle Ben will ensure that commodities go up in price.

All that money that was conjured up. It's not just a bunch of computer ones and zeroes. It has real impact but, at the moment, little effect. But just wait until the banks stop sitting on it, using it as "worst-case scenario fallback reserves." Right now, it has zero velocity. But once it is placed back into use via loans, which at some point is a certainty, through the magic of fractional reserve banking that $700,000,000,000 TARP fund will add another zero behind it. All that money will need a destination, and precious metals and copper are on that itinerary.

Hyperinflation, here we come. You best be sitting on silver and gold if you want to have any purchasing power left. It wouldn't be a bad idea to include a pile of copper pennies and a stack of nickels as well. All commodities will do well in a hyperinflationary event, but why overlook the forms of bullion that the Mint has already gift-wrapped for us, made especially for this purpose? When currency fails, only trusted and recognizable forms of barter will be accepted. In my book, that's copper and nickel. But, as should be obvious to the keen observer, I am a Copper Bug.

Perhaps I am overly biased in favor of this form of bullion? Well then, what do others say? The Copper Kangaroo http://www.copperkangaroo.com/invest.html has this to say, in part: "Bullion is a monetary metal... used to make coins and ingots for monetary or investment purposes. Gold, silver and copper are the three most common forms... Gold and silver have been hoarded as a way of preserving wealth, copper ... less. This is rapidly starting to change and there are now forum sites dedicated to hoarding copper, mostly in... cents."

The Portland Mint http://portlandmint.com/, a copper-cents-are-bullion site says: "a copper penny is worth considerably more than its face value. Because pennies are made by the U.S. mint, they are guaranteed to have the utmost quality and purity. This also makes them easily recognizable, which increases their demand and liquidity. Copper pennies are an inexpensive and safe method of copper investment. A single coin will never be worth less than face value, thus giving it a limited downside. Global demand for copper continues to rise..."

From thepennysorter http://cgi.ebay.com/10-Pounds-Copper-Bullion-Pennies-1959-1982_W0QQitemZ270492689935QQcmdZViewItemQQptZCoins_Bullion?hash=item3efa9ee60f this: "Copper’s healthy maintenance of markets and its promise to gain new ones, such as superconductivity applications, new marine uses such as ship hulls and sheathing of offshore platforms, electric vehicles, earth-coupled heat pumps, solar energy , fire sprinkler systems, and nuclear waste disposal canisters, to name a few, must be balanced against its prospects of future availability."

From PennyBullion http://cgi.ebay.com/2000-lbs-1Ton-U-S-95-Copper-Pennies-1959-1982_W0QQitemZ250407283091QQcmdZViewItemQQptZCoins_US_Individual?hash=item3a4d6fe993 this: "If Foreign Nations, including our biggest creditors, no longer want the Billions of paper Dollars that they hold, why would you want the Hundreds or Thousands that you own? Move into money that is backed by something that has held value for thousands of years; Protect Your Wealth with the most affordable "Precious" Metal, Copper Coins!"

From analyst Sol Palha http://news.goldseek.com/TacticalInvestor/1239107520.php this: "Taking a long term perspective copper is still a bargain; a day will come when its current all time high will look cheap, so one can imagine how the majority will feel in the years to come when instead of buying aggressively, they sat moping around waiting for the experts to guide them."

From GoldWhy.com http://www.goldwhy.com/why-buy-25-dollar-boxes-of-copper-pennies.html this: "Copper is on the rise and you should definitely consider placing part of your metals portfolio in copper bullion." "...you get an instant 100 plus percent gain by holding copper pennies for their raw metal value." "There are very few investments out there that guarantee an instant 100 percent appreciation with no risk." "...you should hoard all of your pre-1982 pennies." "...it may make sense to buy some copper pennies..."

From GoldWorld.com http://www.goldworld.com/articles/pinching-your-pennies/1 this: "... spot price of copper... record high on May 4, 2006 at about $3.50 a pound." " ...many analysts see copper... going much higher." "...with China and India going through their own industrial revolution, copper will see major pressure on the demand side..." "This gives copper a bullish platform." "...pre-1982 pennies could be traded for their intrinsic value, similar to old U.S. silver coins that trade back and forth for their silver content rather than their stated value."

And finally, from an article entitled Will Copper Outshine Silver and Gold?http://www.telegraph.co.uk/finance/personalfinance/investing/gold/5165209/Will-copper-outshine-gold-and-silver.html this: "BlackRock World Mining investment trust... remain overweight copper, which has some of the best fundamentals." "Metal commodities have become a staple part of many portfolios, as investors look for diversification and assets that are not correlated to the performance of shares."

I bring this to your attention to emphasize a point. Two copper opportunities are in this nest. The fledglings are spreading their wings and would like to fly, but they could use an assist. Copper, in this early stage, affords a chance to capitalize for both buyers and sellers. I've presented the case for buyers who wish to take a position in copper bullion. There are millions of these investors, and they will one day come to their senses.

But how many coin dealers and bullion vendors are there online? Hundreds? Thousands? I suspect it's a fairly large number. Do you offer copper cents in bulk? Why not? You don't even have to stock them, you need only advertise their availability. Why don't you contact one of the hundreds of members of realcent.forumco.com who have already saved you the time and expense of accumulating them? You can purchase directly from them and dropship. I'm sure, for the right price, they'd be willing to accomodate you.

If this were the sixties, we might be watching Bonanza as Hop Sing steps forth onto the front porch, grabs his wrought iron wand and vigorously bangs the dinner triangle as he hollers "Copper bullion, come and get it!" Copper is sizzling hot right now. Make sure you get your plateful, in fact why not two? The chef just placed this on the menu, and already it's becoming a crowd favorite. It's just starting to take off, and there's no telling how well it could do. Don't leave hungry.



Buy Silver. Buy Gold. Save Copper. Start Now.

2 comments:

  1. Helpful article. Copper bullion is gaining ground as an investment metal.

    ReplyDelete
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