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.

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.

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.

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Originally Posted by Scrapper2010

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.

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Sure. See my thread right under this one (where it is right now, anyway) titled "Scrap Metal guidelines for Beginners".

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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Originally Posted by Scrapper2010

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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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.

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.