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If You Have 10,000.00$ To Spend....

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Author Previous TopicReplies: 9 / Views: 1,755Next Topic  
Pillar of the Community
jakedacc's Avatar
Canada
1177 Posts
 Posted 07/20/2012  10:29 pm Show Profile   Bookmark this topic Add jakedacc to your friends list Get a Link to this Message Number of Subscribers
Poll Question
if you have ten thousand dollars to spend, and you had the option to purchase 6.3 ounces of gold, 358 ounces of silver, or 2,500 pounds of copper what would you choose...?

explain? do you feel one is more readily stable? one will sky rocket? one will go down hill? less storage? safer investment? more weight? equal? (doesn't matter) ect!

Poll Choices
 Gold (AU)
 Silver (AG)
 Copper (CU)

Valued Member
OldGold's Avatar
United States
272 Posts
 Posted 07/20/2012  11:24 pm  Show Profile   Bookmark this reply Add OldGold to your friends list Get a Link to this Reply
I picked silver, I think it has better upside at the moment.
Pillar of the Community
jakedacc's Avatar
Canada
1177 Posts
 Posted 07/20/2012  11:42 pm  Show Profile   Bookmark this reply Add jakedacc to your friends list Get a Link to this Reply
could the copper choice be explained?
Pillar of the Community
coinwatch's Avatar
United States
808 Posts
 Posted 07/21/2012  12:26 am  Show Profile   Bookmark this reply Add coinwatch to your friends list Get a Link to this Reply
I picked silver for the same reasons explained in the traevin's "Gold vs Silver? thread. High risk, but high potential return.

I have to admit, I don't understand copper well enough to ever really consider taking a significant position in the metal.

Gold, of course, is the fall back PM if buying the other metals stop making sense.
Edited by coinwatch
07/21/2012 12:27 am
Pillar of the Community
Namachieli's Avatar
United States
2120 Posts
 Posted 07/21/2012  12:36 am  Show Profile   Bookmark this reply Add Namachieli to your friends list Get a Link to this Reply
$ 5:3 Silver to gold.

Which is

$6250 in Ag : $3750 in Au

At

$27.33/oz Ag : $1585/oz Au

would be

229/ozt Ag : 2.35/ozt Au

totaling $9983.32 which leaves you enough for gas / food for the outing.
Valued Member
Canada
135 Posts
 Posted 07/21/2012  09:50 am  Show Profile   Bookmark this reply Add Sixthcents to your friends list Get a Link to this Reply
"Could the copper choice be explained"

Copper will likely have better short, mid and long term profit margins if bought at today's prices, though may be a little volatile for some.

Because copper is "only" a couple bucks a pound, when/if it doubles or triples or more, so does your money. This can easily happen.
It's also the most significant industrial commodity on your list. As you may have heard, explosive developmental growth of China and India, will surely drive up the demand, creating a larger copper shortage every year.

Just like any "penny stock" your chances of making big profits are there.


Example: $10,000 invested in copper @ $3lbs, another $10,000 in gold@ $1600/ounce.

If gold moves up $10/ounce, you make a 1% profit, you now have $10,100.
If copper moves up $10/pound, you make around ~230% profit, you now have around $33,000 total.
(I hope I did the math right, but you get the idea)

In my opinion, I am almost certain copper can hit $10/lbs, very easily, in the next couple years.
Look at how many electronics we now use today. Copper is the new lumber stock, and you may see "copper barons" in the future.

The cheaper the starting price, the better potential for profits.

Copper is ~ $3/lbs
Gold is ~ $25,600/lbs
As you can see, the copper is almost free compared to the price of gold.

Heck, copper can gain you 15% percent in a matter of hours or days.
Don't be scared to trade it monthly, or even daily.
You absolutely will not get anywhere near this kind of performance from gold.


$500 in gold, just to look at and polish.
$1500 in silver for diversification.
$8000 in copper, your money making workhorse.

(If your greedy, put it all in copper, though the "eggs in one basket" approach should not be recommended.)

Heck, $2000 invested in copper can make you $2000 in a short amount of time, then take some profit to by some bling, rather then the principal.






Edited by Sixthcents
07/21/2012 09:51 am
Valued Member
Canada
135 Posts
 Posted 07/21/2012  11:00 am  Show Profile   Bookmark this reply Add Sixthcents to your friends list Get a Link to this Reply
In December 2008 copper was ~$1.25/lbs. In December of 2010 it peaked at ~$4.50/lbs.

$10,000 would have turned into over $40,000 in 2 years.

The same money invested in gold at that time period of 2 years would have turned into ~$19,000, for comparison.

Today, I think gold is close to, or is at a plateau of value for a while. In my opinion you have to be careful when holding "expensive" stocks, like gold and Microsoft, because unless something profound and dramatic happens to make them go up, they are more likely to take a big hit, then make you any real profit.

Here's a mixed analogy for you:

A stock like Gold is big, heavy and slow moving, unless it's drops, then it's quick. Dropping it causes big damages. It's hard to put Humpty back up on the wall.
When a stock is light-weight and agile like copper, you will have bigger swings,(ups and down), they can also recover from a drop much better and faster.

Not to sound cliche, but "buy low, sell high"
You want the big swings, and to be on the right side(Left hand side) of those upwardly moving swings.

In my opinion, it's not a good idea to buy Gold when it's "high", unless you just want to park money and are absolutely confident it's not going to drop 20% or 40%, if it does, you will have a long wait ahead of you if you want it to recover, which could take years.

Copper on the other hand swings up and down 20% or 40% in a matter of months or weeks. If you goof, you can recover, and still make profits again much faster then with gold.

So yes, I can almost promise you that 10K in copper will make you more then 10K in gold over the next 1,3,5,10,20years etc.
But alas I am not a Crystal Ball, just a geek on a computer who really can't promise you anything. :)

Another thing that needs to be considered is the effect of a global economy when it comes to "gold are prices high when the dollar is down"
There may be some saturation of gold on the market in tough times, perhaps making Gold a little less valuable in bad times then it was in previous times.

It's the old "whoda thunkit" or "why didn't I think of that".

The stocks that make people the most money over the coarse of history, are the ones that most people overlook.




Edited by Sixthcents
07/21/2012 11:08 am
New Member
United States
31 Posts
 Posted 07/21/2012  11:03 am  Show Profile   Bookmark this reply Add harthag12 to your friends list Get a Link to this Reply
Copper is a definate no for me, I have no space to store 2500 pounds of copper nor would I want to try and sell it. I'd most likely go gold based on the fact that I'm not looking to sell for 30+ years at around retirement time at the earliest, storing 6.3 oz is easier than the silver. Also currently it's easier to purchase silver in small amounts so I'm adding to that continually, gold would require me to save a bit to purchase so for a lump some scenario of here's a bunch of money, gold.
Valued Member
Canada
135 Posts
 Posted 07/21/2012  11:31 am  Show Profile   Bookmark this reply Add Sixthcents to your friends list Get a Link to this Reply
You don't need to physically by and hold the copper, and as far as selling copper, that's what the stock market is for, just a phone call away, or a few clicks of a mouse.

If you do want physical copper, it does not take up much room. I bet you use more space storing junk and Xmas decorations. You could easily fit it in a closet, or a few square feet in corner of your garage. I bet it would fit in your trunk if you do the math. It's only around 5 cubic feet, you could put it anywhere that would take the weight.

Or, if you have physical copper, you can call an armored truck, would take them 10-15 minutes to load it and their gone.

By the nature of it's weight, it is more secure for home storage. Somebody can run off with your gold and silver very easily, but they can't carry 2500lbs of copper.
An average pickup truck can't carry that much copper. You need at least a 1-ton to carry that weight properly, or take 2 or 3 trips.
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Ed_B's Avatar
United States
4008 Posts
 Posted 07/21/2012  4:48 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list Get a Link to this Reply
I went for the gold. Already have a good amount of silver and copper is a "meh" for me.
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