Copper Investing

I have worked for years for a cable manufacturer in the US. One of the most important parts of my job is to pay close attention to current market value of copper, so I am monitoring it daily, and actually several times per day.

The thing is, no one pays too much attention to copper because for the longest time it never did much. It really never went much over $1/lb. But because of Over the last 4 years, copper value has grown incredibly volatile. This is due largely to the increased demand and the decreased availability of copper. It seems like a scary choice for most investors. I'm not convinced though.

The thing about my company is that we work very often selling to the petroleum exploration and production industries, and without fail, when the gas price shoots up, so does the copper price. Obviously this is linked by the fact that it requires lots of petroleum to run exploration operations and production facilities. So as long as gas stays expensive, you can count on copper following suit. Enter the "copper trend".

One thing I can say for sure is that without fail, every year at one point or another copper drops down to somewhere around $1.50/lb. Another is that every year at one point or another, it raises to over $3.00/lb sometimes even spiking to over $4.00/lb. So this time around, I have decided to take a new look at it. Since I am constantly monitoring the metal's value for my day job, I don't loose any sleep obsessing over it, and I already have a very good understanding of the copper trends over the last 4 volatile years.

My plan is to invest a small amount (my next bonus) in copper as soon as I see it drop to around $1.50. Then I can be very certain that within 12 months we will see it over $3 again. So I am looking at doubling my investment in less than 12 months. That is good money no matter how you look at it. I am definitely a novice investor, but I am certain that I will be able to make some money with it. I will start small and update this hub when I am able to make my move.