Busy Yards Everywhere = Imminent Price Crash?

[Dr. Cadmium]

This is the busiest I have ever seen any of the local scrap yards. Material is coming in so fast at the yards I frequent that the workers can barely keep up. Is it the same where you are?

The last time I saw a frenzy like this was three years ago - early summer '08. Even then, it wasn't this busy.

This level of activity at the yards means only one thing to me - a major price correction to the commodities sector is coming soon.

If I'm wrong and this continues for much longer, then there will be changes at a lot of the metal yards. Examples: more laws and regulations, increased security, higher minimum weights.

[theirrationalist]

This is the busiest I have ever seen any of the local scrap yards. Material is coming in so fast at the yards I frequent that the workers can barely keep up. Is it the same where you are?

The last time I saw a frenzy like this was three years ago - early summer '08. Even then, it wasn't this busy.

This level of activity at the yards means only one thing to me - a major price correction to the commodities sector is coming soon.

If I'm wrong and this continues for much longer, then there will be changes at a lot of the metal yards. Examples: more laws and regulations, increased security, higher minimum weights.

Great observation! I sold about half of my copper stash before the price fell from sell offs, and I think I made a good call (well, I also wanted to spend the cash, so it was more luck...)

For anybody holding onto their metals for investment, this could be a bad thing; but if you are scrapper, this may prove good for your business in the long run. While volatility is mostly bad, it should weed out the amateurs and small time competition. So, if you can weather the storm, you should come out ahead!

Or if you're like my neighbor down the street, your happy because "all those scrapper guys should just go get a 'real' job."

[01GTB]

Thanks for the info. I haven't been in a while, and have a small stash (maybe a $7-800 worth) that I have been meaning to get in. I've been thinking we were due a big correction with the amount of new people I see on the roads. I guess I need to get moving.

[hobo finds]

Summer is on the way. Always a price drop......

[CrazyTom]

Funny you should mention it. Yesterday I found steel was down but lead was up.