Cashing in, is only a matter of time. - Page 2

The guys and gals who are going to really feel the pinch, are the ones who buy scrap. For those of us like myself who don't buy scrap, we have a little more flexibility. I will be hoarding, in fact, I'm looking to amass about a 1000 lbs for the year. To me, it's a challenge and I cannot wait to see what the end result is going to be.



QUOTE=1956;235273]Well every one has there own opinion on the storing of material, my opinion is I buy it I sell it it has worked for me for quite a few years, thinking or better yet hopeing the market will turn back to the highs of the last couple of years is a gamble that in my opinion is no way to run a business, copper in the scrap metal business is by volume and value the most precious metal we deal with and can like mentioned in a prior post a way to go into bankruptcy, buying this Commodie for a price gambling it will go up in value just does not make sence to me. Being a former yard owner I can tell you you never gamble with the highest price metals by hoarding them recipe for disaster. My advise to you would be if you want to gable , gamble on items that contain copper, perfect example electric motors, an item that if copper goes back up the coper bearing motors would also go up so you are not tiring up lots of capital and the amount of money you are gambling with would be a hole lot less. Just one more point I would like to make copper has a way of disappearing especially if a few people know you are storing it, so proced with caution best of luck.[/QUOTE]

Matador, I share your sentiments and that it exactly what I'm doing.

If anyone has decided to sit on computer scrap that's not a smart move at all. I want to explain why. E scrap trends follow a formula of the average PM content and PM prices at any given time. We as scrappers know that the newer the scrap is the less PMs it will have HOWEVER it may also have resellable parts. This is fine and dandy except both these trends steadily move downwards at a constant pace. Sure DDR2 memory is still doing good but around here that has alot to do with me. I can pay it because I need it. You guys might want to look at ebay sometime, the ddr2 memory has fallen below my buying prices, core 2 procs are dropping and things are shifting towards i series stuff...some of which is falling below 10 per proc.

My point is exactly as 1956 already said. Buy it, sell it. Computers are a super solvent depreciating market. You never hold anything unless you like losing money. Plan for every low grade assay from the big boys to come back with less PMs than last time. Did everyone forget a year or so ago we had 2.00/lb low grade motherboard buyers? Gold wasn't 1500 a year ago. I've taken the time to come up with an estimate of computer scrap depreciation formula on a few different factors, resale components, p3 and older mix and then p4 and newer but not reusable scrap. It basically says that if you sit on your scrap for six months you stand to lose 20% of your sell value if gold is at a similar price both times. I can back that up by checking my invoices. I was sick for a few months last year and had a big garage full of stuff that sat because of it.

I'm also not sure if I would sit on copper pipe, bar stock or stripped wire either. I too remember a long long stretch of low copper prices. I take the opposing view on shred though. I know the low shred price is not sustainable for anyone from down to up stream and I know the melters are still hard at work as ever here in the states...and I agree with oldude that things will take some time to settle out. I however believe we will never have 200/ton shred until the end of the decade. I think we can bounce back to 75-80% or original sometime next year. I'm ok with that...I'm looking for solutions to that problem, baling technology and so on. If your of the select few like patriot who can hold a huge amount of material you stand to make a few bucks trading on physical futures.

For the rest, I have some advice. Do your breakdowns, maximize your scrap, cherry pick what you find...don't get out of your truck for a broom handle...but a microwave you should. Think about part reselling...it's tax season and in certain neighborhoods you will begin to see perfectly good appliances get kicked to the curb simply because they are dirty or "dont work as good" anymore. I'm three feet away from a panasonic microwave with a non working turntable...it it heats just fine...and its an inverter microwave...free for the taking.

Hang in there, things are going to get much better as we shake loose the people who were only in it for easy money.

I meant to say "It was free for the taking"

still buying aggressively......If nothing else give me something to do

I'm hoarding.

I have been sitting on all my copper for a long time and can't part with it for such a low price. I got 19 lbs of carbide from a buddy a year ago or so and I sat on that hoping the price would have gone up. It's was selling at $12.25 and now at $8. Locally i could of sold it for $7 and now its $2.20. I have to sell it, but there is that lingering thought I can store this easily and wait for the prices to return.

I have a lot friends that own businesses that have perished and are scrapping by. They all tell me to sell and not hoard. One buddy took me to his warehouse to show me an example of hoarding. He has a printing business and bought cartridges $20 a piece trying to sell them at $60. The technology changed 6 months later for printers and everyone invested in new printers. He was selling 4 a month and now its like 2 every 6 months. He has 2 pallets of these.

It's a gamble and each and everyone of us must choose a path. I'm leaning on the side of history and copper prospectus, better days are yet to come. I'm hoarding like a big dog.

Originally Posted by Rollyrogers33

I have been sitting on all my copper for a long time and can't part with it for such a low price. I got 19 lbs of carbide from a buddy a year ago or so and I sat on that hoping the price would have gone up. It's was selling at $12.25 and now at $8. Locally i could of sold it for $7 and now its $2.20. I have to sell it, but there is that lingering thought I can store this easily and wait for the prices to return.

I have a lot friends that own businesses that have perished and are scrapping by. They all tell me to sell and not hoard. One buddy took me to his warehouse to show me an example of hoarding. He has a printing business and bought cartridges $20 a piece trying to sell them at $60. The technology changed 6 months later for printers and everyone invested in new printers. He was selling 4 a month and now its like 2 every 6 months. He has 2 pallets of these.

Carbide is my LONG game. I started that after I discovered the high value right here on THIS forum. When I say long game, I plan to sit on the buckets I've got for years, decades if need be because unlike any other metal Tungsten has proven to be a finite resource.

When it comes to Carbide a lot of weight can fit in a coffee can so it doesn't take up much space at all. Not sure I've seen it go for much more then $12 bucks though.

As much as I hate to remind people, we never really know what tomorrow brings and any one of us could be 6 ft under by weeks end. When looking over my inventory I try to keep that in mind and how would it impact my family when it comes to trying to convert inventory into cash. I feel like once the initial impact has passed they could deal but would still be a chore. I think of Mick and the 1000 pounds of copper he was sitting on, waiting for a better price, when he passed.

Originally Posted by KzScrapper

When it comes to Carbide a lot of weight can fit in a coffee can so it doesn't take up much space at all. Not sure I've seen it go for much more then $12 bucks though.

As much as I hate to remind people, we never really know what tomorrow brings and any one of us could be 6 ft under by weeks end. When looking over my inventory I try to keep that in mind and how would it impact my family when it comes to trying to convert inventory into cash. I feel like once the initial impact has passed they could deal but would still be a chore. I think of Mick and the 1000 pounds of copper he was sitting on, waiting for a better price, when he passed.

wtf mick is gone ? When no one told me.

Originally Posted by taterjuice

wtf mick is gone ? When no one told me.

http://www.scrapmetalforum.com/scrap...ick-smith.html

Eric