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.

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.

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

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.

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.