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Thread: Scrap Metal as an investment

  1. #1
    Mick started this thread.
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    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
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    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.

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    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.
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    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".

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    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.

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    Mick started this thread.
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    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.

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    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.


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