Step Seven to a Fortune:
Copper has become very valuable
While picking up cans, I notice small lengths of copper wire laying on the street and sidewalk. I close my eyes and visualize copper of all kinds everywhere for the picking. I see myself picking up these pieces and collecting them over time.
Salvage Copper for Scrap
From $8.85 in reserve capital, I plan to invest up to $ 1.46, looking for a return of $1.61 or greater. This would include a profit of $ 0.15 or more.
If I gather small lengths of copper wire that I find laying about construction sites, strip off the insulation, and sell it to a scrap yard, I should be able to increase my capital.
As I cross small lengths of abandoned copper I put them in my pocket. I do not get large piles of it, only isolated bits of wire that have fallen or been discarded. I am salvaging, not stealing this wire.
I will need a wire stripper tool and a knife to slice off the insulation.
A little research shows #1 bright copper wire sells for over $2.00 per pound. I would like to gather about 5 pounds of this semi-precious metal.
I drove 31 miles to a scrap dealer. I sold 4 lbs. of copper at $2.40 a pound. It took 31 miles at 15.5 mpg. Gas was about $1.50 per gal...so $3.00 went for gass. I got $9.60 for the copper. Net=$6.60
Starting capital $ 8.85
Planned investment risk > $ 1.46
Investment return goal > 1.61
Actual investment 0
Total actual expenses $ 3.00
Total gross income $9.60
Profit or loss this deal $6.60
Ending capital $15.45
I found 4 lbs of copper! I drove 31 miles to a scrap dealer. I sold 4 lbs. of copper at $2.40 a pound. It took 31 miles at 15.5 mpg. Gas was about $1.50 per gal...so $3.00 went for gass. I got $9.60 for the copper. Net=$6.60 Starting capital $ 8.85 Planned investment risk > $ 1.46 Investment return goal > 1.61 Actual investment 0 Total actual expenses $ 3.00 Total gross income $9.60 Profit or loss this deal $6.60. Ending capital before deductions is $15.45
What is my expected gain? I expect to gain at least $1.61.
What place does copper have for future steps? Copper has become so expensive some investment advisors are beginning to suggest investors hold copper scrap as a hedge against inflation. The price is currently down due to the poor economy, but as construction and manufactoring grow copper will likely sky rocket in price.
Copper is real; dollars are bloated paper monsters. The fed and member banks print 20 of them for every real dollar a worker or capitalist deposits in a bank. Every dollar spent by the government that is not collected in tax is a legal theft. Since the Federal Reserve Central Bank replaced gold, the dollar has decreased in value by a 1000 to 1.
Gold would be a good thing to acquire and keep. If you can't afford gold, save a little copper. Sell enough to keep your capital fund growing and save some.
I started with $8.85 in capital. I was looking to risk $1.46, but I drove too far to the scrap dealer with too little copper. I spent $3.00 for gasoline. This is why it is so important to remember that we make these investments in curves rather than straight lines. We need to maintain the surplus capital for times like this when expenses exceed our expectations and budget. When it was all over I had $15.45 before taxes
As a good citizen we pay 35% of $15.45 or $5.40 leaving $10.05
As a good person we pay out 10% of $5.40= .54 leaving $9.51 capital for investment and surplus in case something goes wrong.