highroller4321 wrote:Lemon Thrower wrote:VWBEAMER wrote:Copper pennies not only do you have a solid bottom of 1 cent each.
well by your logic silver dimes are 10 times better than copper pennies. I won't embarass you by mentioning quarters, halves, or dollars.
i will admit there is a margin of safety in copper pennies, but only if you ascribe a zero cost to your time. the original post suggested putting $15,000 into copper pennies, and to do that you pretty much have to buy from someone at 60% above face, which eliminates your margin of safety. so what looks like a margin of safety relies on a false assumption. its an illusion.
Not at all! If you buy 1 copper penny for 1.5x face you can only lose 0.5 cents! If you buy a silver dime for spot for $3.51 you can lose up to $3.41!
Will silver ever drop that far? I highly doubt it but the principal behind the statement is what we are looking at.
HighRoller, thanks for your response.
this thread is supposed to explain why copper is better than silver. I will concede copper is safer than silver but for me that does not make it better than silver.
copper is different from silver. its less shiny. for me that does not make it better.
copper is cheaper. for me that does not make it better - just means it takes up more space.
most people will judge what makes it better by how much it is expected to go up. there is a compelling argument that silver and gold are fundamentally different than copper in that they have substantial investment demand. investment demand is beginning to revert from the FIRE economy to gold and silver, but not copper. that argument has persuaded me.
during the 70's, silver went up 30X, gold about 25X. in comparison, copper roughly doubled from 50 cents to a buck.
http://minerals.usgs.gov/minerals/pubs/commodity/copper/240798.pdfif you want to say copper is a good thing to buy because it low risk or because appreciation is more likely, i would agree. but i would not agree that the profit potential is larger than silver or gold.
The OP says its better than silver. As a holder of silver, i am interested in anyone who can provide an argument why I should sell silver and buy copper. but really, this requires some agreement as to what makes one thing better than another. if we define better as safer, then i agree. I define better as a bigger profit potential, so i dont' agree.
it takes courage to be different from the crowd. in the short time that this forum has been around, i have seen silver go from less than 10X face to now 35X. Is it risky to buy at 35X? I dont think so, although you righly point out it can fall 34X which is more than say .5X for copper. But copper cents are still selling for about what they were selling for 3 years ago. Bernanke has flooded the world with trillions and copper cents have barely budged. If copper is better than silver, tell me what the catalyst will be to get the price of copper cents rising faster than the price of silver?