Copper: Part I The new currency.
I don’t know if you have noticed what I
have, but lately it appears that people are using Copper as a poor mans
currency. I started to notice during the crash of 2008, that copper was
being sold in a .999 pure bullion. The photo attached is for a single
troy oz of “Fine Copper”. The list price for this copper, as is, was 12
dollars. Think about that for a moment.
Copper sells for about $4 per pound in the
futures market. The contract size is for 25,000 pounds, and it costs
$250 dollars per penny when quoting copper, the December forward month
is currently quoted at 400.60 pennies, for a total cash cost of $100,150
I dont know about you, but I would love to
have a business where my future cost of inventory was 27 cents per oz,
and after some remarketing costs, I am able to charge $10 to $12 per oz.
Check out this google link to Copper Bullion for sale.
It’s not just the 1 oz bars, people are now selling copper bullion in
kilo bars, coins, rounds and pretty much anything else they can make it
look like a legitimate currency.
The ironic aspect to this, is that if the
rumored one world currency is deployed, and it has in it, physical
commodities like copper, you can expect an increase in crime to break
out. If people started to look up at power-lines and instead of seeing a
few pennies per pound in realized value at a junk shop, instead becomes
thousands of future World Dollars, we will have problems.
Utilities, which are already heading
underground will have to be moved there even quicker, and the deployment
of new communications like WiMax will be necessary. The era of cell
phones, and 4G internet, will end the need for copper to be installed in
homes going forward. The Net will always be there, and why leave your
phone at home wired to the desk?
In simple terms, we are close to turning a
point in the technology curve, where the value of the copper in the old
POTS (plain old telephone system) is more valuable torn out of the
walls, than left in them. Consider that for a moment. Now, think about
how easily accessible to anyone this stuff is. Savaging will greatly
outweight the cost of trying to find job’s for our chronically
The streets are currently lined with money
hanging from wood poles. When you think about buried fiber optics,
WiMax and Cell phones, the question becomes why do we have all of this
copper in the walls, buried under the yard, etc.
Ironically, copper is already one of the
most owned metals, due to its usage in home building. It could be
argued that it is already distributed to the masses, and as such could
be considered a currency already.
A buyer of an abandoned house in today’s
economy *already* has to make sure that it still has its copper in the
walls. It takes very little effort in the big picture, to strip out
hundreds or thousands of pounds of copper from an abandoned home or
If Copper becomes part of the next global
currency, the world will have a new crime wave. The only difference, is
that it will be based on a physical commodity changing hands, or at
least represented in the exchange. While there is not enough Gold in
the world, or Silver in the world to act as the physical basis of a
currency, there is enough Copper.
Is that enough of a reason to develop it into an international currency? What say you?
Disclosure: Jack Barnes has no exposure to Copper, or any companies listed in this article. This disclosure and others are available at JackHBarnes.com