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copper

Glenn Sossin_2
Glenn Sossin_2 Member Posts: 592
in THE MAIN WALL
Prices will start going up again shortly

Comments

  • Unknown
    Unknown


    These prices are for what quantity?
  • Robert O'Brien
    Robert O'Brien Member Posts: 3,563
    A

    copper contract is 25,000 lbs.It doesn't matter what the contract size is.If there was a mini copper contract for say 5000 lbs the prices would be the same otherwise there would be an arbitrage opportunity.Someone would buy the cheap contract and sell the expensive one in the proper ratio and lockup a guaranteed profit.Needless to say that will never happen to me or you.

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  • Brad White_9
    Brad White_9 Member Posts: 2,440
    Holding on to my scrap pile for now....

    Great chart, Glenn- where did you get that?

    Do they have one for bull manure? I have a short sale pending on Washington DC...
  • Glenn Sossin_2
    Glenn Sossin_2 Member Posts: 592
    Futuresource

    http://www.futuresource.com/charts/charts.jsp?s=RHG&o=&a=D&z=800x550&d=medium&b=bar&st=

    I try to monitor every day. I got a call from a copper tube mfg a few minutes ago that they expect a 21/2 price change tomorrow morning. They are soliciting a coverage order from me. I place it today, even if I don't need it, wait 3 - 4 wks or more to get it, and hope the prices are higher still when it comes. The idea is, tomorrow morning, they expect the price to be 21/2% higher or more.

    It basically its the comex - similar to the stock market. You try to buy low and sell high. Alot of times, it doesn't work out that way. As I said in an earlier post on this subject, its a two sided sword for the wholesaler.

    Even if this wasn't happenning in the market, the price ususally goes up around end of June and July as the mills close down for maintenance. When this happens, there is a smaller supply availble so prices tend to go up.

    So for those of you with some room and money, I would suggest you look closely at your bids, and stock up on brass and copper related items like ball valves, and copper fittings.
  • Unknown
    Unknown


    I'm still confused. How much copper does my $371.20 buy? I'm thinking it's $371 per 100 lbs?
  • Robert O'Brien
    Robert O'Brien Member Posts: 3,563
    It's

    $3.71 x 25,000 = $92,750.00 Total value of contract.The margin required to open a position is only $5700 and $4200 to maintain so you can see the enormous leverage available

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  • Glenn Sossin_2
    Glenn Sossin_2 Member Posts: 592
    I'm In

    Robert I'm in for $50
  • Unknown
    Unknown


    Thank you! Put me in for $50 too. ;)
  • Robert O'Brien
    Robert O'Brien Member Posts: 3,563
    Sure

    if copper goes up .002 you'll have doubled your $50!

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  • Unknown
    Unknown
    Where do I send the money?

    Oop, I figured out the math now. So I guess all that new copper I was shaking my head at yesterday because it's been in stock so long is actually a GOOD thing? ;)
  • Glenn Sossin_2
    Glenn Sossin_2 Member Posts: 592
    Where do we send the check

    Weeeeee were making money. Up again. I heard today that one of the major copper tube guys(I'm not naming names) will only sell under contract now. Meaning you issue a PO today, when they ship, thats the price regardless of whether the price at time of shipment is up or down.

    Brad I'm working on the bull manure chart.
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