Monday, May 30, 2011

Metal theft points to direction of inflation and economy

As inflation picks up, the value of scrap metal rises. These price increases affect real estate in two ways:

  1. Increasing commodity prices can help predict the general direction of prices of all goods, inclusing real estate; and

  2. Increasing scrap metal values place real estate at risk for theft and vandalism.

In particular, metal theft demonstrates the declining value of the dollar and the lengths to which thieves will go to obtain something with real value. Metal theft has been rising in recent years, and in particular in recent weeks. Consider the following news items:

The problem is nationwide and is no longer limited just to copper or just to abandoned houses or houses undergoing rehabilitation. Iron is considerably less valuable than copper, yet thieves are targetting that metal also.

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