Friday, February 01, 2008

More ways of holding energy - Aluminum foil?

 My wife thought I was a bit crazy to be grabbing a couple Costco-sized boxes of aluminum foil last time we went.  I figured the price of food is going up more over the next few months, so starting with something that preserves food would work out well.  Looks like following and trading stock charts can apply to the real world.

``Aluminum is the one to watch at the moment,'' said David Thurtell, an analyst at BNP Paribas SA in London. ``Aluminum is often referred to as solid electricity'' because it requires so much power for production, he said.

Aluminum production consumes 15.5 megawatt hours of power per ton compared with about 4 megawatt hours for a ton of copper, said Goldman Sachs analyst James Gutman in London.

Source: Commodities

I noticed AA when reviewing P/E for the large DOW stocks... theirs has steadily declined up until the Jan '08 crash.

Realistically it is probably 40% of costs that are electricity, less tax benefits and such.  That's still not bad if you want some solid electricity... and it's a conductor if you want to give it a charge.

But watch out for recycled Aluminum foil... it only takes 5% of the energy from it's parent.

"Aluminum for delivery in three months fell $15 to $2,695 a metric ton as of 3:17 p.m. on the London Metal Exchange. The 6.7 percent gain this week would be the biggest since November 2001.

Copper declined $85 to $7,265 a ton. "

Forget Gold, I'm going to go find a ton of copper someplace...

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