Are copper bullion bars a good investment?

Debbie_A_3

Reiwxib wrote: »

Isnt it true that now pre 1999 or therabouts 2p and 1p coins are worth more than double face value.

Just like the Romans started mixing other things in their coinage 2p and 1p's are no debased metals well just like all our other coins I suppose.

Could it be that when the pound sterling goes to zero, 1p and 2p coins will be worth a lot in whatever currency replaces sterling?

Not saying the pound will die soon, I think the Euro and the US $ are looking more unstable than the UK's pound.

You need to go back to 1991. 1p and 2p coins minted up to and including 1991 were made of bronze (97% copper):
http://en.wikipedia.org/wiki/Penny_%28British_decimal_coin%29

Bronze pennies are currently "worth" about 2p, though how one earth you could realise that extra value is another question entirely.

Debbie_A_3

Reiwxib wrote: »

Isnt it true that now pre 1999 or therabouts 2p and 1p coins are worth more than double face value.

Just like the Romans started mixing other things in their coinage 2p and 1p's are no debased metals well just like all our other coins I suppose.

Could it be that when the pound sterling goes to zero, 1p and 2p coins will be worth a lot in whatever currency replaces sterling?

Not saying the pound will die soon, I think the Euro and the US $ are looking more unstable than the UK's pound.

You need to go back to 1991. 1p and 2p coins minted up to and including 1991 were made of bronze (97% copper):
http://en.wikipedia.org/wiki/Penny_%28British_decimal_coin%29

Bronze pennies are currently "worth" about 2p, though I really don't see how you could easily realise that extra value.

talana

Are copper bullion bars a good investment?

Well, in short, there is no such thing. Copper isn't considered bullion.
And if it was, and you wanted to hold it physically, you'd need a huge amount to make it worthwhile. Half a ton, a ton....? Hope you have a large basement!

jimjames

Britishbeef wrote: »

Why would people invest in stocks during money printing as commodities do much better!

Gold, silver are all time high. I am not observing copper but it is commodity.

Really?

Surely the time to buy something for best return isn't when it is at an all time high? (although gold isn't actually at an all time high if you factor in inflation which seems to conveniently be forgotten when it suits!)

sabretoothtigger

LME Official Prices (US$/tonne) for 21 Jul 2011 (Data >1 day old) LME Official Opening Stock (in tonnes)


COPPER

CASH BUYER 9,606.00


COPPER GRADE A CASH SELLER & SETTLEMENT £5,939.41

Its not that cheap

Anything can happen but if governments can chose between deflation and hyperinflation they chose deflation.

Governments choose inflation because it means their own debt costs them less. They would not choose to avoid that and make currency so strong it causes deflation.

Its Quite confusing but UK GDP could rise under deflation

Inflation means those who carry cash subsidise the costs of debtors in the same currency. Hence most british people are debtors and borrow money from foreigners and we are vulnerable to any drop in supply of that foreign cash.

Copper price in comparison could rise alot as it is taken by those same foreign lenders especially as we dont mine it in the UK?

atush wrote: »

Is that one of those roman gold mines in wales ;-) ?

No its in Spain. Rio Tinto mine. Those gold mines in Wales are little things unfortunately. I think there is more chance of them reopening coal or tin in Cornwall

This company is involved in reopening the last deep coal mine in wales I think, I dont own them :
http://www.google.co.uk/finance?q=LON:HSP

atush

i swear I read in a newspaper on Sat that there were tiny roman mines looking to open in the UK for gold.

In any case, copper is best played my owning a miner as apart from construction/water suppiles it isn't sold in the UK market and if it were it takes up too much room and is not liquid enough as it would take far more effort than to sell a gold coin in a dealer/pawn shop.

and Ark, sorry for the typo as i don't condone taking advantage of the young lol!

Ark_Welder

atush wrote: »

In any case, copper is best palyed my owning a minor...

I thought child slavery had been abolished

Timingthemarket

sabretoothtigger wrote: »

Governments choose inflation because it means their own debt costs them less. They would not choose to avoid that and make currency so strong it causes deflation.

That is a myth.
There´s a huge difference between inflation under control and not.
Interest and costs would increase much more. If you can´t fool the whole market of course but good luck with that.

Reaper

Britishbeef wrote: »

Why would people invest in stocks during money printing as commodities do much better!

Gold, silver are all time high. I am not observing copper but it is commodity.

Don't lump all commodities in the same category.

Commodities that are used by industry will go up and down with simple supply and demand (with some speculation muddying the water). If you are hoping copper or other commodities would be a safe haven in a time of world recession you are mistaken. They will fall in price if a recession causes a drop in demand for manufacturing. They will go up if the developing countries avoid recession and manage to expand faster than new supplies can be brought on tap.

Gold is different as it has limited industrial use and is often used as a store of value when people get fearful, so it is more likely to do the opposite.

atush

Indeed, the price of copper tends these days to rise and fall with the demand from Asia.