Hedging Copper prices

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tarnation
Posts: 2481
Joined: Thu Apr 26, 2007 12:36 am

Hedging Copper prices

Post by tarnation »

We are planning to replace out roof with a copper roof. They guy can't install until the fall at best, and copper has been on quite a streak this last year. Would like to hear opinions, on cost averaging into CPER (United States Copper Index Fund, LP) or JJC (iPath Series B Bloomberg Copper Subindex Total Return ETN) ETFs until we buy the physical copper. Just in case it goes up another 100% before we can get it done.
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Californiastate
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Joined: Thu Feb 04, 2021 11:52 am

Re: Hedging Copper prices

Post by Californiastate »

Buy the material now if you have concerns.
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Wiggums
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Re: Hedging Copper prices

Post by Wiggums »

Californiastate wrote: Tue May 18, 2021 6:44 pm Buy the material now if you have concerns.
+1
Starfish
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Joined: Wed Aug 15, 2018 6:33 pm

Re: Hedging Copper prices

Post by Starfish »

If you buy the fund and it goes up you will pay marginal tax on the gains, so it will not be the same thing. Add the trouble of dealing with K1s etc.
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tarnation
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Re: Hedging Copper prices

Post by tarnation »

Starfish wrote: Tue May 18, 2021 7:23 pm If you buy the fund and it goes up you will pay marginal tax on the gains, so it will not be the same thing. Add the trouble of dealing with K1s etc.
I was thinking I could avoid this by buying in an IRA brokerage. I see these are down 3% today already. This is why I was interested in averaging in. I don't know that metals/inflation will keep going all summer while economy heals. Surely prices will plummet after I buy a literal truck load. :D
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