Question: Why would someone purchase a 15 kilo copper bar for $320 when copper is only
$2.86 LB. To what I know there 2.2 LBS in a kilo now that 2.2 times 15 gives you 33 lbs. 33 times $2.86
= $94.38. Could you please explain, because to me its a huge rip off, thank you.
Answer: Thanks so much for the question and for visiting my site! As just about the
biggest copper bullion evangelist out there, I
have gotten this question more than once. As always, it's a real pleasure to answer it because I'm a
big believer in the power of accumulating a position in physical copper bullion (whether it be bars,
pennies, or scrap copper).
First and foremost, your numbers are absolutely correct. However, the spot price of copper you're
quoting of $2.86, is based on paper contracts for delivery of tons of copper bullion. When you're
not prepared to pay for and take delivery of tons of copper bullion, that spot price will quickly
become a huge understatement of the real price of copper bullion. When you want to buy
just a few pounds of copper, you're looking at substantially higher prices. Moreover, once you own
physical copper bullion, make absolutely sure you never sell for the spot price of copper.
Because it's hard to get investment grade copper in physical form, you've got something special on
your hands and make sure to extract the full value when you're selling! (However, my personal opinion:
Don't sell and hold for the long term.)
Second, copper is a tough metal to work with. It must undergo extreme temperatures to melt and it's
quite the operation to refine it into a beautiful ingot. The copper ingots from
Tacoma copper are works of art
that took substantial work to produce. These smaller copper bullion mints will definitely
charge for their hard work refining the metal, as they should. Again, from the buyer's perspective,
you're paying a bit more when you buy; When you sell, make sure to extract the full value of your
As you may know from my large focus on copper bullion, I'm a big fan of this metal. I view copper as
a great component of one's bullion portfolio in the range of 0% - 10% of your holdings. (I'm
not an investment advisor and this is just my personal opinion, for entertainment only.) Within
this component of your portfolio, there are definitely things you can do to keep your cost of copper
down. I personally enjoy owning both copper ingots and also
The beauty of copper pennies is you can hoard them for their face value. If you pay a bit more for
copper ingots, the pennies help bring your cost basis back down while owning a diversified copper
Moreover, I'm super excited about recent trends in owning physical copper bullion
that make it easier to keep your cost basis down.
The Copper Cave
recently started offering 10 pound bags of copper chops for only $49.95. This is a super way to own
copper bullion for a substantially lower premium over spot. I highly recommend this option
for small and large copper investors alike.
Also, I recently discovered The Portland Mint. I'm super
impressed with this awesome way of buying large quantities of physical copper bullion. They
can either deliver your bullion or store it for you. Again, another interesting way to own copper
close to the spot price. Longer term, I expect this trend to continue. It's awesome to see the
innovation in the industry towards reducing the spread between spot and the price small investors
pay for smaller quantities of bullion. One thing is for sure: Copper bullion is one of the most
exciting and fastest evolving areas within metals, period! I can't get enough of this niche and
enjoy buying all of the different copper flavors.
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