In the past few years if you have listened to the news then you would know that the price of copper is on the rise. With the price of copper going up so is the number of incidences where people are stealing copper. These people are not just looking for scraps of copper but even stealing it off your conditioning systems from your house.

What needs to be understood is that the price of scrap copper and raw copper are different. Thus when there is less raw copper and scrap copper starts showing up, the price of scrap copper will go up. It is said that certain copper companies are being held off the market to drive up the price of scrap copper, this is also said about China as a whole that it is not selling its raw copper to drive up the price of scrap copper.

If all the factors are working towards driving up the scrap copper prices then it would be a normal assumptions to think that people stealing copper would be on the rise, and it is. The amount of copper being stolen is higher then it has been in many years, but people are trying to make a few bucks and with the price of scrap copper being so high it is going to happen.

This causes companies who use copper to be extra cautious and safe, copper wire is stolen very often. Clean uncoated copper wire and scraps sell for the highest amount, so if a bundle of copper wire is coated you would think you would have less to worry about. This is not true because the people stealing copper wire will burn off the coating and clean the copper as well as they can to sell for a higher price.

The price of scrap copper will continue to be high as long as the amount of minned copper is down. As scrap copper prices rise the amount of stolen copper will stay high, so be careful.

Many people will assume that the price of copper is going up because of the demand for copper in countries like China and India, and this is partially true. China consumes 50% of the worlds copper and is a factor in the rising price but not the only or largest factor. The volatility in copper prices can be most highly attributed to the managers of copper funds.

Fund managers look for places to invest money in order to earn returns, thus in the copper market they invest due to the current and future demands and predictions of copper prices. There is always a correlation between the physical market of copper and the predicted demands of copper in the future, thus when the two meet the price of copper will go up and profits will be made. Fund managers also buy into copper companies — copper stocks are extremely popular methods for investing in copper.

Over the last 15 years copper prices have changed dramatically thus attributing to their volatility. Around 1998 copper prices were so low that many copper mining companies went under, the price to mine copper was more expensive then the profits gained for selling the copper. In the past five years copper prices per tonne have fluctuated by two to four thousand dollars.

The price of copper looks as if it will stay somewhat strong for the future due to the many uses of copper now. Basically the demand for copper will keep it afloat and the price will rise unless more copper is found. Copper could be in less demand if other metals are used alternatively for coppers current uses, with the little amount of copper being found this is a likelihood.

Don’t forget to also check out our silver price website.

I say this even as I’ve launched Live Silver Prices just a few weeks ago. If you look at the about page, you’ll see that even there I’m echoing my thoughts here — prices are essentially unpredictable without scientific certainty that I’d feel comfortable enough to bet on. Some get offended and upset at this, claiming I’m too conservative — but they’re probably right. I’m more focused on financial security than profits.

In the end, economics is an art more than a science, regardless of what professors at universities might claim. This all reminds me of a quote from Richard Maybury, one of my favorite investment writers: ‎

“Investment analysis is not the study of charts, graphs and equations, it’s the study of people. The economy is not a machine, it’s an ecology; it’s not physics, it’s biology.”

Once you understand that economics is about human tendencies and vices, you’ll see why capitalism makes much more sense. It isn’t optimistic about people being inherently good or selfless — it counts on their selfishness, and unleashes it for the potential benefit of all.

Anyway, just a few thoughts on silver prices that I wanted to share. Make sure to sign up for our newsletter.

Topics include the Canadian gold ETF, the 3x gold ETF, the Barclays Gold ETF, and other more in-depth articles about the gold market, inflation, and why gold has never lost all its value.

Feel free to check it out, and use the contact form to let me know what you think.

This quest for a larger income leads many consumers to making risky stock market investments. While, silver stocks, gold stocks, penny stocks, and junior mining stocks may hold some earning potential, many investors simply do not have the experience to effectively procure a profit.

Instead, many traders end up losing their investments and wind up in worse financial shape then when they began trading.

What Are the Risks Associated With Gold and Silver Stocks?

Many investors assume that because the price of gold and silver has been at an all time high, their stocks would be as well. Unfortunately, this is not always the case. Investing in silver and gold stocks is tricky business. Most stocks are valued under the actual cost of the metals and are constantly increasing and decreasing in value, unlike many other stocks that make slow, but steady increases.

Many investors purchase these stocks in order to make a quick buck. There are numerous stock market gurus that advise traders to invest in these stocks. Unfortunately, many inexperienced investors end up losing some or all of their investments, as these markets move quickly. While it is possible to make a profit with these stocks, investors will have to select and follow their stocks very carefully, in order to make the most beneficial trading choices. Therefore, the risk of purchasing silver and gold stocks greatly outweighs the benefits for many traders.

Is It Possible to Make Money with Silver Penny Stocks or Silver Junior Mining Stocks?

Penny stocks are low cost stocks, usually under $5.00, that are considered both high risk and unpredictable. Junior mining stocks are investments in exploration companies that are searching for valuable minerals, elements, metals, like silver, and gemstones. Traders that purchase junior mining stocks are investing in a specific company by funding their efforts, hoping that the company will make a valuable discovery.

The fact is that both of these type of stocks are erratic and largely unpredictable. Most junior mining companies will simply not make a discovery valuable enough to make stock holders a profit and penny stocks are difficult to manage. These types of stocks need to be checked on very frequently, as to ensure that the stock holder has not lost his or her investment. Therefore, unless an investor is extremely experienced, willing to do their research, and has a fair amount of time on his or her hands, these stocks are generally not profitable and should be avoided.

To learn more about gold, check out my gold coins website. To learn more about investing in gold, check out my cheap gold investment course.

Plenty of circumstances exist that would lead a prospective investor to believe that buying gold is a safe alternative to investing in other areas, but it is important to understand that purchasing gold stocks is certainly not the answer. Although there are many different reasons not to buy junior mining stocks and gold penny stocks, the following points must be considered prior to any purchasing decisions.

Gold mining companies often sell shares of their stock to investors, but it is necessary to note that these investments do not actually represent any precious metal. The success or failure of the miners is what an individual is investing in, and it is incredibly easy to lose money in these ventures. Gold coins are often considered to be one of the safest investments and is valuable throughout the world, but a stock has no guarantees and is in no way secured by existing gold. Unless an individual is looking for a volatile and risky investment that is likely to lose any money tied up in it, it is advisable to stay away from mining stocks.

Gold penny stocks and gold junior mining stocks are basically gambles that the price of gold will continue to rise, and this would then result in higher profits. However, a consumer needs to realize that even if gold prices were to reach record highs, it is still possible for a mining operation to fail. Commercial operations are subjected to a number of different risks that could individually or collectively cause the company to go bankrupt. Whether there is weather issues or simply trouble locating gold, a mining organization could be forced to close leaving all of the investors with a complete loss.

Multiple investigations by the SEC have determined that many gold penny stocks and junior mining stocks are riddled with fraudulent business practices and non-existent companies. In the modern day gold rush, consumers have been quick to jump on the bandwagon and attempt to make an incredible amount of money with fly by night mining operations. The risks are simply not worth it, and the majority of individuals will lose every bit of their investment in their attempt to invest in gold.

Some investors purchased renewable energy put options during 2010 as a bet that the market would decline. Since the market has been rather flat this year, those investors saw their put option portfolio go down. Therefore, using renewable energy put options as a hedge against a market decline was not a good idea.

Investors who are simply seeking to add renewable energy stocks for the purpose of diversification may fair better. They should focus on the clean energy sectors that are being relatively ignored by most investors. These include alternative transportation (like mass transit), energy efficiency, and electric grid sectors. Putting some money into batteries/storage, wind, geothermal, waste/biomass, and other renewable sources will add further diversification.

An alternative to investing in individual stocks within each of these sectors is to put money into exchange-traded funds. Examples are the First Trust Global Wind Energy Index, Powershares Global Progressive Transport Portfolio, and First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund. This eliminates the need for the individual to engage in stock picking, something that could be quite time consuming within all of these sectors.

As far as how much of the portfolio to invest in the renewable energy arena, that is an individualized decision. It depends largely upon the investor’s market expectations, risk tolerance, and why the individual desires to invest in renewable energy (aside from diversification). The motivations may include fighting global climate change, being environmentally responsible, or peak oil scenarios. Renewable energy is still in its early stages so investors may want to start small.

The most aggressive drilling companies will once again see capital returns that are impressive. Shareholders benefit when the stock price increases as well as through dividends paid. Large drilling companies are expected to continue their deepwater search for oil, resulting in high revenues.

Some drilling companies have managed to stay undervalued in historical terms. Investors should look at these as well as companies with global, diversified operations. This will ensure that the new regulations do not have as much of an impact on share price.

Noble, an offshore oil and gas drilling contractor based in Switzerland, is an investment recommended by some analysts. Noble’s fleet includes 69 offshore drilling units, the second largest fleet after TransOcean, which has a fleet of 138 drilling units. Noble obtains 24 percent of its business from the Gulf of Mexico and 38 percent from off the Brazilian coast. The company’s biggest customer by far is Shell.

Pride International, whose shares rose 30 percent in the wake of the BP oil spill, is another company to consider. Diamond Offshore is a another contractor that engages in offshore deepwater subsea well drilling and represents a wise investment. As deepwater drilling projects begin in rougher seas, investors may even want to consider expanding the portfolio to include rig manufacturers such as Ocean Rig ASA. The company’s rigs are designed for extreme weather and ultra deepwater conditions.