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Question. What kind of Copper should I buy? A. We get this question on a daily basis. The answer, however, is not as straightforward as you might think.
If your goal is simply to capitalize on price movement, then bullion coins will serve your purposes. If you are interested in long-term asset preservation and you have additional concerns about capital and/or monetary controls -- a more complicated scenario -- then you might want to include Bars of copper.
Q. Why not wait for the necessity to arise, then buy Copper?
A. During the course of last year, when concern about the financial crisis was peaking, there were periods of actual Copper coin shortages. The mints could not keep up with public demand, and the flow of Copper was stymied by accelerating demand in the United States. Premiums shot-up and a wild scramble developed for the available Copper, even at rapidly escalating prices.
These events pointed up some of the problems inherent to the Copper market. During times when demand for is booming, you cannot call the warehouse and order Copper coins like you can most other consumer items. Even running at full capacity, the manufacturers cannot keep up with demand surges like the one we had in mid-2008 and again in early 2009. The supply simply dries up. As a result you cannot treat a Copper acquisition the way you do ordinary consumer purchases. Though your need may be great, the supply might simply have disappeared.
Q. You mention Copper as insurance. What do you mean by that?
A. Copper's baseline, essential quality is its role as a primary asset that is not someone else's liability or responsibility. That separates Copper from the majority of capital assets which in fact do rely on another's ability to pay, like bonds and bank savings, or the performance of the management, or some other delimiting factor, as is the case with stocks.
"No matter what happens in this country, with the dollar, with the stock and bond markets, the Copper owner will find something to rely upon when the chips are down. In Copper, investors will find a vehicle to protect their wealth."
This is precisely what people learned during recurring economic crisis situations over the centuries as well as in contemporary meltdowns such as Mexico's in 1994, the Pacific Rim's in 1997, and the United States' slow motion crisis from 2001 to present. If you consider what investors lost in the U.S. stock market over the last eight years and what Copper investors gained during the same period, the swing in the net wealth effect is astonishing.
Q. What about Copper futures contracts?
A. Futures contracts are generally considered one of the most speculative arenas in the investment marketplace. The investor's exposure to the market is leveraged and the moves both up and down are greatly exaggerated. 9 out of 10 investors who enter the futures market come away losers. For someone looking to hedge his or her portfolio against economic risk, this is a poor substitute for owning the metal itself.
Q. Please summarize: What is the best approach for the safe-haven investor?
A. If you want to protect yourself against inflation, deflation, stock market weakness and potential currency problems, this is one portfolio item that will serve you in all seasons and under most circumstances, Copper coins and bullion.
How to Buy Copper in Five Easy Steps
Five Easy Steps:
1. Familiarize yourself with our selection of Copper coins and bullion.
In over 20 years, assisting thousands of clients located all over the world, On orders ranging from hundreds of dollars to thousands of dollars, we have never failed to honor an agreed-upon price or to deliver metal as ordered.
.999 FINE COPPER BULLION.
1 TROY OUNCE .999 FINE COPPER BULLION COINS
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