Results 1 to 7 of 7

Scrap Metal as an investment

| General - Let's talk business
  1. #1
    Mick started this thread.
    Mick's Avatar
    SMF Badges of Honor



    Member since
    Aug 2010
    Location
    Palermo, Me
    Posts
    3,405
    Thanks
    363
    Thanked 3,086 Times in 1,326 Posts

    Scrap Metal as an investment

    I've been stockpiling a lot of the copper and #1 iron for the past year as an investment. Today, I got to figuring out potential gains. There are a couple things to keep in mind:

    1. Typical bank investment plans are paying around 1% per year or less.
    2. For reference, my scrap yard's prices today are: #1 Copper - $2.85/lb; Aluminum Sheet - .40/lb; #1 Iron - $220/Ton and Light Iron - $155/Ton.

    I keep a record of prices and a year ago (Nov 16, 2009) was $2.10, .33, $115 and $90.

    So, if you held Copper, you have a return (increase in value) of 35%; Aluminum 20%; #1 Iron 91% and Light Iron 72%.

    The low price for Copper and Aluminum was 1/28/09. Copper was 0.80/lb and Aluminum was .20/lb. Holding these for 22 months would have yielded 356% and 100%, respectively. Iron (both #1 and Lt) was low on 3/17/09. #1 was $70/Ton and Light was $40/ton. So holding these for 20 months would have been a 315% and 388% return or roughly 200% annually.



    Beats the bank and any investment firm I've heard of.
    Last edited by Mick; 11-11-2010 at 01:16 PM.
    People may laugh at me, but that's ok. I laugh all the way to the bank.


  2. #2
    SMF Badges of Honor


    Member since
    Nov 2010
    Posts
    165
    Thanks
    23
    Thanked 69 Times in 36 Posts
    I completely agree with you mike! I think copper especially is a great investment for the future. For some reason or another I have just been too busy to hold onto my scrap. (I like spending money I guess!) I did however hold onto all scrap from last june 09 until last april which was one of my smarter moves. I would have held on longer, but I had bills to pay! I know there are different stocks one could invest in that buy and sell just copper. The one that caught my eye was NYSE:JJC.

  3. #3
    SMF Badges of Honor


    Member since
    Sep 2010
    Location
    Columbus, Ohio
    Posts
    31
    Thanks
    0
    Thanked 3 Times in 3 Posts
    Mick, could you help me understand #1 Iron? I always throw all my iron into one container at the scrapyard. Is there a way to tell #1 iron from light iron? Thanks.

  4. #4
    Mick started this thread.
    Mick's Avatar
    SMF Badges of Honor



    Member since
    Aug 2010
    Location
    Palermo, Me
    Posts
    3,405
    Thanks
    363
    Thanked 3,086 Times in 1,326 Posts
    Quote Originally Posted by Scrapper2010 View Post
    Mick, could you help me understand #1 Iron? I always throw all my iron into one container at the scrapyard. Is there a way to tell #1 iron from light iron? Thanks.
    Sure. See my thread right under this one (where it is right now, anyway) titled "Scrap Metal guidelines for Beginners".

  5. #5
    SMF Badges of Honor


    Member since
    Sep 2010
    Location
    Columbus, Ohio
    Posts
    31
    Thanks
    0
    Thanked 3 Times in 3 Posts
    Thanks. Thinking back, at least some of my iron has been thicker than 1/4". Of course the scrapyard won't say anything if I don't.

  6. #6
    Mick started this thread.
    Mick's Avatar
    SMF Badges of Honor



    Member since
    Aug 2010
    Location
    Palermo, Me
    Posts
    3,405
    Thanks
    363
    Thanked 3,086 Times in 1,326 Posts
    Quote Originally Posted by Scrapper2010 View Post
    Thanks. Thinking back, at least some of my iron has been thicker than 1/4". Of course the scrapyard won't say anything if I don't.
    Live and learn. That's how most everybody does it. I hate to think how much money I've just "thrown away" by not sorting or tearing stuff apart.

  7. #7
    SMF Badges of Honor


    Member since
    Nov 2010
    Location
    Boise, ID
    Posts
    2,702
    Thanks
    2,237
    Thanked 2,352 Times in 1,014 Posts
    I'm kicking myself for not saving my copper I got in Sept of 2009. Bought over 1,000 pounds at a IRS auction. Paid $300 for it and scrapped it for $1,900.

    Went to the scrap yard yesterday and noticed I would have gotten $2,778 for it.


  8. Similar threads on the Scrap Metal Forum

    1. Stacking #1 Copper as a Precious Metal Investment
      By scrapperben in forum Off Topic Discussions
      Replies: 26
      Last Post: 09-05-2023, 03:45 AM
    2. AL-Jon Scrap Logger/Baler (investment)
      By VWS in forum Tools and Equipment
      Replies: 20
      Last Post: 11-02-2014, 06:44 PM
    3. buying and reselling investment grade copper
      By danielms in forum Off Topic Discussions
      Replies: 2
      Last Post: 03-28-2012, 05:53 AM
    4. Best Investment?
      By dherik in forum Tools and Equipment
      Replies: 38
      Last Post: 09-23-2011, 10:26 PM

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

 
Browse the Most Recent Threads
On SMF In THIS CATEGORY.





OR

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

The Scrap Metal Forum

    The Scrap Metal Forum is the #1 scrap metal recycling community in the world. Here we talk about the scrap metal business, making money, where we connect with other scrappers, scrap yards and more.

SMF on Facebook and Twitter

Twitter Facebook