What is Copper Chop?

 

What is Copper Chop?

Copper is one of the most industriously useful metals in the world. A wide range of different industries use copper, and its conductivity makes it especially integral in the electricity and electronics sectors. Copper’s industrial usefulness has made it a highly popular base metal for investing. Aside from being an integral component used in various industries around the world, the affordability of copper makes it a viable alternative to gold, silver, and other precious metals.

One of the largest obstacles to investing in copper is the high premiums associated with physical copper products. Processed copper coins, bars, and rounds are often sold at heightened premiums. A 1 oz copper round may sell for $1.99 or more, even if the spot price of copper is only $5 per pound. Additionally, copper’s low price per pound means that investors hoping to stack the metal typically need to buy it in bulk before they see substantial profit as the price of copper rises.

Buying copper chop and scrap is an easy way for investors to cut down on copper premiums while buying copper in bulk. What is copper chop? Copper chop refers to small granules of copper typically sourced from insulated copper wire and stripped of their plastic insulation. Many investors buy copper in bulk using large bags of copper chop, which can further minimize premiums while offering highly pure copper.

On this page, learn more about what copper chop is – and whether it’s a good way to buy copper.

How is Copper Chop Made?

Copper chop is made by removing copper from copper wiring before ‘chopping’ it into small pieces of pure copper. First, manufacturers remove the insulation, typically plastic, from the wiring. Next, the pure copper interior of the copper wiring is chopped up into a large number of small bits, which are then packaged and offered to retail consumers.

Methods for producing copper chop can vary, and several strategies are used by manufacturers to remove plastic insulation and metal impurities from the copper wiring. The result? A large amount of highly cure copper with very few impurities.

Copper Chop vs. Copper Rounds or Bars

Copper chop is different from copper rounds, bars, and other processed copper bullion products. While copper bars and rounds are likely the most common way retail investors purchase pure copper products, copper chop provides investors with an opportunity to save money on premiums while purchasing a large quantity of copper at one time.

Compared to copper chop, copper rounds, bars, and other processed copper products tend to sell at higher premiums over melt value. This is due to two main reasons. First, copper rounds and bars are more expensive to manufacture, since producing them requires metalworkers to create a design, refine their copper, and then precisely strike the design into their copper blanks or ingots. Second, copper rounds and bars tend to include less copper than copper chop, making it an inexpensive and costly product to refine and produce.

Is copper chop a better way to invest in copper than bars or rounds? Both copper chop and processed copper collectables can be great ways to invest and collect copper, but copper chop tends to be a more cost efficient product for stackers. Copper chop is sold in bulk and tends to retail at lower premiums per pound than either rounds or bars, making it an excellent choice for copper investors who want to save money on costly premiums.

Investing in Copper Chop

Copper chop is more of a specialty product than copper bars or rounds, making it a bit trickier for investors to get their hands on. Luckily, some online precious metal retailers, including Hero Bullion, regularly stock bags of copper chops in various weights. Buying copper chop can be a great way for investors to save money on premiums while buying pure copper in bulk.

Although buying copper in bulk is a classic method of cutting down on premiums, the heavy weight of most copper chop packages can pose an obstacle to investors on a budget. While copper chop can technically be sold in nearly any weight, most bags of copper chop are large. This can make it tricky for investors to find an option that works for their budget and investing needs.

For investors who want to save on premiums by buying copper chop without purchasing extremely large amounts of the metal, we recommend searching for dealers who offer a variety of different copper chop products. Bags of copper chop can be sold in nearly any weight, making it easy for investors to customize their investments.

Why Buy Copper Chop?

Copper chop is a unique copper product because of the variety of customers it tends to attract. Plenty of investors enjoy buying bags of copper chop because of their large size and low premiums. Non-investors who produce copper products, such as copper jewelry, rounds, or bars, also love copper chop because it gives them access to highly pure and easy-to-melt copper at an affordable price.

On the other hand, copper chop is a poor choice for investors who enjoy collectable copper products. Unlike copper bars or rounds, copper chop carries little-to-no premium over melt value. A bag full of copper chop is really only worth its value in copper. While this is fantastic news for copper investors or stackers who primarily care about holding the metal itself, copper chop is far from ideal if you’re somebody who appreciates highly collectable copper products.

Three big reasons to buy copper chop include:

1. Easy storage.
2. Affordable premiums.
3. Quality and pure copper.

Below, we’ll take a closer look at the main reasons why copper chop is an increasingly popular way to invest in one of the world’s most useful metals.

Easy Storage

One of the biggest reasons to buy copper chop is how easy it is to store. Copper chop is typically sold in bags, boxes, or other storage containers, making it convenient to unpackage and store without any additional protection. Because copper is not nearly expensive as precious metals like gold or silver, storing copper chop usually doesn’t require investors to purchase expensive safes to keep their stack secure.

Since copper chop is valued almost exclusively for its metal content, investors also don’t need to worry about imperfections ruining the value of their copper stack. Silver or gold coins can lose considerably premium value if they’re scratched or damaged in any way. Because copper is sold based off of its purity and weight, copper chop can’t be easily damaged – at least, not in a way that impacts its value.

That being said, copper chop can lose a bit of scrap value if exposed to oxygen for prolonged periods of time. Highly oxidized copper can downgrade, which means that it is less attractive to individuals and companies that buy and sell scrap copper. While the difference is marginal for processed copper products that carry a substantial premium, we recommend that investors take steps to protect their copper chop from oxidation and other kinds of contamination.

Affordable Premiums

The single biggest reason to buy copper chop, especially compared to processed copper bars or rounds, is the lower premium costs. All metals are sold at a premium, which is a small (or large) fee added to the intrinsic melt value of the metal a product contains. Premiums can vary from product to product, as well as among different types of metal.

Where percentage premiums are concerned, copper is often sold at a much higher premium than silver, gold, or other precious metals. Some copper products are even sold at two or three times their melt value in pure copper.

The good news is that copper chop tends to retail at a far lower premium than traditional processed copper products like copper coins, bars, and rounds. Copper chop is still processed, but manufacturers don’t need to spend money on designs, laser-etching, or other costs associated with copper bars and rounds. As a result, buying copper chop is often considerably more affordable than buying copper rounds of the same size.

Quality/Pure Copper

Aside from being affordable, copper chop is also an easy way for investors to buy large quantities of highly pure copper. Most copper chop products are 99.9% pure or purer. This is about as pure as the average copper bar or round, but copper chop is sold in much higher quantities. This is great news for investors who want to save money on premiums while still buying the purest copper available.

The small size of each granule of copper in a bag of copper chop also helps attest to your product’s purity. While large copper products may sometimes be filled with less expensive metals by scammers, copper chop is so granular that it’s easy to tell what you have in your bag of chop.

Buying Copper Chop Online

Buying copper chop online is a great way for investors to build their copper stacks while taking advantage of the convenience, affordability, and variety offered by modern online retailers. Hero Bullion offers three weight options for 99.9% pure copper chop:

• 5 Pound Bag of Copper Chop
• 10 Pound Bag of Copper Chop
• 50 Pound Bag of Copper Chop

We deliver our copper chop inside of branded Hero Bullion bags, merging pure copper with collectability to give investors the best buying experience possible. Our copper chop is 99.9% pure and weighted to ensure that investors receive the perfect amount of copper for their investing needs.

Final Thoughts: What is Copper Chop, and Should You Buy It?

Copper chop is granulated copper that has been removed from highly pure copper wiring. While copper chop isn’t quite as collectable as copper coins, bars, or rounds, it offers investors the perfect opportunity to save money on premiums while buying copper in bulk. Highly pure, easy to store, and affordable, copper chop is the ideal investment vehicle for stackers who want to maximize the metal they get for their money.

You might also be interested in:

• What Drives the Price of Copper?
• What is Copper Used For?
• Why is Copper So Expensive?