Peanut's Potent Plethora of Profit

[billyjoe]

Keep on sorting, Billy. You'll be up to a ton of copper in no time for a fraction of the actual cost. How do you determine whether a 1982 penny is copper or zinc?

With silver going up, I doubt you'll have many takers at your $8 x face Craigslist price. I think it is worth somewhere around $10.80 x face.

I hear more and more blab about commodities from the talking heads... might be time for a pullback.

Peanuts,
Good question about the 1982 pennies. I've got several hundred set aside until I can tell for sure. Statistically only .166 of them will be zinc. They say you can tell by the sound of their "ring" when dropped on a hard surface but that's not too reliable. Some you can tell just by looking, a stronger strike, a certain texture.
Last batch of 2000-- 28.8% copper. The 1982's aren't counted in the total.

---------------billy

[peanuts]

Peanuts,
Good question about the 1982 pennies. I've got several hundred set aside until I can tell for sure. Statistically only .166 of them will be zinc. They say you can tell by the sound of their "ring" when dropped on a hard surface but that's not too reliable. Some you can tell just by looking, a stronger strike, a certain texture.
Last batch of 2000-- 28.8% copper. The 1982's aren't counted in the total.

---------------billy

I guess that if you're tone deaf, you can get one of the digital scales. I read that the zinc pennies weigh 2.5 grams, and the copper pennies weigh 3.1 grams.

How about that copper price!!! It doesn't have too far to go now to get back over $3. That still won't be the high though. I wonder when we'll see $10 copper?

[billyjoe]

Peanuts,
Another 1000 today. Copper, 26%. Wheat ears 5. Also find dimes mixed in quite often. If I buy a scale to determine copper from zinc, there goes my meager profits. Any amateur chemists out there? I'm sure someone knows a simple method of determining copper plating from near solid copper. Maybe spray with a weak acid solution?

---------------billy

[peanuts]

where's the money going to?

http://business.smh.com.au/business/soros-hedge-funds-buy-into-marengo-20090901-f6ze.html

George Soros likes copper going into 2013!

[peanuts]

3 metal arbitrage opportunities













It looks like there are only 2 good opportunities to make a profitable trade:
short GOLD, long SILVER
short GOLD, long COPPER

Regardless of whichever you choose, the trade is turned off when the ratio become more in line with the far left of the comparison charts. Alternatively, a moving average could be used to compensate for trending ratios.

If the first trade method is used, the math shows approx. 28.57% potential return, regardless of the opportunity that you choose. Employing a moving average as the trigger for closing the trade would lessen the potential profit, but also add some accounting for the trend.

Theoretically, either trade can be made on futures contracts. Most do not have access to this trading. So, practically speaking this limits the trade to short GOLD, long SILVER. There is no ETF for COPPER. However, you can short GLD and buy SLV.

[skiracer]

i like both copper and silver peanuts. i just picked up a load of copper wire that was left on a job i was looking at. im not sure of the gauage but alot of 1/4" / 1/2" / and 1" service line copper. had to be at least 100 lbs. of it. i throw it in a pile out back. one of these days i'll get around to stripping it and getting rid of it when the prices goes back up. right now i think it's over $2.35 a lb. but it was up over $3.40 or so i think. the silver etf, SLV, looks good right here under $15.

[riverbabe]

My son-in-law, the artist, makes assemblage art from found objects. He has found a great deal of copper wire and sells it on ebay. Makes a bundle. Teaches master classes. Could give you a link to his work, but hesitate to use this forum.

Peanuts, today read that First Energy is buying AYE.

http://www.marketwatch.com/story/firstenergy-buying-allegheny-energy-in-stock-deal-2010-02-11?siteid=yhoof

[peanuts]

My son-in-law, the artist, makes assemblage art from found objects. He has found a great deal of copper wire and sells it on ebay. Makes a bundle. Teaches master classes. Could give you a link to his work, but hesitate to use this forum.

Peanuts, today read that First Energy is buying AYE.

http://www.marketwatch.com/story/fir...1?siteid=yhoof

yup... looks like I've got to send my bill payment to a new company. Also, I foresee further consolidation within the electricity generation and distribution industry

[peanuts]

i like both copper and silver peanuts. i just picked up a load of copper wire that was left on a job i was looking at. im not sure of the gauage but alot of 1/4" / 1/2" / and 1" service line copper. had to be at least 100 lbs. of it. i throw it in a pile out back. one of these days i'll get around to stripping it and getting rid of it when the prices goes back up. right now i think it's over $2.35 a lb. but it was up over $3.40 or so i think. the silver etf, SLV, looks good right here under $15.

I'm pretty sure there is a big difference in prices paid for stripped and unstripped wire at the scrap yards. Most of the scrap gets shipped to China.

I too like the depressed price of silver. I was pushed out of a trade in AGQ last week and I have been looking to re-enter. I am also holding some GLD calls that are still in the red.

The current ratio of gold price to silver price is just under 70... which is historically very high

[Lyehopper]

..........................................

[Lyehopper]

wonder why I can't "find" any copper.....

My son-in-law, the artist, makes assemblage art from found objects. He has found a great deal of copper wire and sells it on ebay. Makes a bundle.

There's a fella in Roanoke that is doing jail time right now because he "found" some of my copper wire on a construction site back in December....

[riverbabe]

There's a fella in Roanoke that is doing jail time right now because he "found" some of my copper wire on a construction site back in December....

try scrap yards and railway tracks. hee

[peanuts]

...I am also holding some GLD calls that are still in the red.

The current ratio of gold price to silver price is just under 70... which is historically very high

Those GLD calls ended up in the black and made up for the loss in AGQ.

Silver witnessed a rebound in comparison to the price of gold. The current ratio is more like 68.7:1 now. It still has further to go. I still like the short gold, long silver trade.

[skiracer]

There's a fella in Roanoke that is doing jail time right now because he "found" some of my copper wire on a construction site back in December....

the stuff i am talking about are short cufoffs left by the electrical contractor. nothing on the reel or roll. i think it was just scrap that no one wanted. anyway no one has mentioned it to me. it is still in my back yard scrap pile so i guess i could give it back if someone claimed it or came looking for it but if they do they better come with their holsters on.

[peanuts]

short GLD, long SLV

... the math shows approx. 28.57% potential return, regardless of the opportunity that you choose. Employing a moving average as the trigger for closing the trade would lessen the potential profit, but also add some accounting for the trend.

Theoretically, either trade can be made on futures contracts. Most do not have access to this trading. So, practically speaking this limits the trade to short GOLD, long SILVER. There is no ETF for COPPER. However, you can short GLD and buy SLV.

Here's a 3 year weekly candlestick chart that shows a 150 week moving average and a 7 week RSI. If you entered the trade today, and choose to use the 150 week MA as your trigger to turn off the trade, then the potential profit is approximately 11.82%