Market Caution

Originally Posted by IdahoScrapper

I don't know what to do. I am sitting on about 15,000 lbs of misc scrap.

sell some of it now encase prices drop hard an fast.

Originally Posted by easyrecycle

sell some of it now encase prices drop hard an fast.

You can also hedge against a price drop by shorting the commodities that you hold the most of. So if you're holding X amount worth of gold rather then dumping it you can hedge by short selling the same value of gold futures.

That way you get to hold your product until you have large quanties to move and you protect your margin/profit from prices drops. You wont make more if the price rises but you won't lose anything if the price drops.

As an example today I purchased 15,000 pounds of misc copper cables. If I wasn't planning to move it right away I would short sell an equivalent amount of copper on the open market and protect my profit margin from any price movements.