‘Despicable’: LA recyclers arrested in major crackdown on stolen metal operation — here’s how to profit from rising copper prices without the risk of going to jail

“This is an organized form of crime that's enabled by those metal dealers, metal purchasers who are enabling these crimes by knowingly purchasing stolen goods,” said Los Angeles City Council President Paul Krekorian.

The cost of repairs resulting from these thefts is expected to reach half a million dollars for the city.

Thefts aren’t limited to wires; thieves are also ripping fire hydrants out of the ground to sell for scrap metal. Golden State Water, a California water company, reported more than 300 hydrants stolen since the start of 2023, with the pace “ramping up” in 2024.

Stealing fire hydrants poses a serious risk, potentially leaving communities vulnerable. With each hydrant costing around $3,500, Golden State Water estimates that the losses have totaled $1.2 million.

The damage extends further, with thieves also targeting historical monuments and grave markers.

“Even grave markers, which gives you a sense of the despicable nature of the people who commit these crimes,” Krekorian remarked.

Frustrated, Krekorian is urging the district attorney to classify copper theft as a felony.

Whether it's a sign of desperate times or a crime of opportunity, metals like copper are not just a target for thieves; they can also be a strategic asset for savvy investors. The price of copper has increased by more than 50% over the last five years.

With growing demand in sectors like renewable energy, electric vehicles and global infrastructure development, analysts predict that copper’s value will continue to rise, making it a potentially lucrative investment for those looking to capitalize on long-term trends in the market.

Here’s a look at three legitimate ways to add copper to your portfolio.

Copper stocks

When copper prices increase, companies that engage in copper mining and production often experience significant financial benefits. Copper mining stocks allow investors to tap into the profitability and growth of these companies as they extract and sell copper.

Major players in the industry, such as Rio Tinto (RIO), Freeport-McMoRan (FCX) and Southern Copper Corporation (SCCO), can be sensitive to copper price fluctuations. As the price of copper rises, these companies typically see higher revenues and improved profit margins, which can lead to increased stock prices and potentially higher dividends for shareholders.

It's important to note, however, that many copper miners also mine other metals such as gold, silver and molybdenum. This diversification can affect the stock's performance, as the prices of these additional metals also play a role in the company's overall profitability.

Additionally, each company is different, so investors should conduct thorough research and consider factors such as production costs, geopolitical risks and overall market conditions before making a decision.

Copper ETFs

For those who prefer not to pick individual stocks, exchange-traded funds (ETFs) offer a convenient way to gain exposure to the red metal.

There are ETFs that invest in shares of companies involved in the copper mining and production industry. They provide indirect exposure to copper by leveraging the profitability and growth of these companies.

These funds offer diversification within the copper sector by spreading investments across multiple companies. Notable examples include the Global X Copper Miners ETF (COPX) and the iShares Copper and Metals Mining ETF (ICOP).