Would you invest in copper, and if so how?

Conrad

lukekelly wrote: »

Tulips have never returned to their peak prices. Beware of this kind of argument.

I think you'll find copper has a record of demonstrating a sustained intrinsic value over time.

According to some on this site, nothing is ever worth investing in.:rotfl:

Really2

Conrad wrote: »

According to some on this site, nothing is ever worth investing in.:rotfl:

True, but fibre optics could be the invention damaging it's price.

It is not as needed in fast data tranfer that much now and that is set to dwindle further.

Generali

Conrad wrote: »

I understand the copper price has fallen 80% in a year. Would you invest and if so how exactly?

If the copper price can fall by 80% over a period then it could again fall by 80% over same period or equally rise.

When I studied economics (many years ago) the copper market was shown as one where market failure was induced by Governments - Governments would borrow to keep mines open which kept supply high which kept prices low which meant mines needed to look for Government money.......in the end the Government runs out of money.

Of course it doesn't help that so much copper comes from basket case places (Sorry to anyone from Congo but your homeland is a mess - King Leopold is mostly to blame I agree)

Generali

For many years, miners have failed to make money out of copper then all of a sudden: Way Haaay!!!


A wall of borrowed money hit commodities in the same way that borrowed money had hit the UK housing market in the past with the same result. Prices rose quickly and are now falling back quickly too.

purch

Would you invest and if so how exactly?

Investing in Commodity's is easy, and has been going on for century's

Base Metals trade on The London Metal Exchange, and COMEX

Copper is: http://www.lme.co.uk/copper_contractspec.asp

You can trade this sort of stuff through a decent commodity broker such as Sucden

Cannon_Fodder

lostinrates wrote: »

Copper theft is massive round here. and other bits of buildings.

I'm waiting to hear that the copper roof they featured on a "Grand Designs" property in the middle of Bath has gone walkies...1,000s of sq metres.

Conrad

Thanks for some useful posts, especially Purch (thx for the link - now I'm worried I'll be mugged as I know nowt about the content of copper tranches) and The General (someone said u had left, glad you haven't).

What would you invest in now?

Generali

Conrad wrote: »

Thanks for some useful posts, especially Purch (thx for the link - now I'm worried I'll be mugged as I know nowt about the content of copper tranches) and The General (someone said u had left, glad you haven't).

What would you invest in now?

Index linked Gilts, agricultural stocks and perhaps a small amount in banking stocks as a punt (eg HSBC, Standard Chartered, Westpac).

Diversification is always the best policy though, IMO.

DYOR of course. These aren't recommendations so much as ideas to pursue.

chookie1

Really2 wrote: »

True, but fibre optics could be the invention damaging it's price.

It is not as needed in fast data tranfer that much now and that is set to dwindle further.

Quite hard to send water or electricity down fibre optics though.....

jon3001

There's an ETF based on copper futures contracts:
http://www.etfsecurities.com/csl/etfs_copper.asp