Metal theft; North Beaver Township bridge

I have written previously about metal theft and the implications of rising metal prices and metal theft for inflation and the real estate market. In today's inflationary environment, Metal thieves are constantly finding different metal things to steal in ever greater quantities. An item in today's Ellwood City Ledger in Western PA proves that point:

As the value of scrap metal — including copper and steel — increases, thieves have been becoming more daring and less respectful of institutions such as churches and schools.

But one group of thieves might have set the standard last week by stealing a 50-foot-long bridge. State police said the bridge was stolen between Sept. 27 and Wednesday in North Beaver Township. The theft was discovered shortly after 9 a.m. Wednesday.

Despite recent commodity price declines, metal theft continues and will remain an indicator of strong inflation until government spending is brought under control.

Metal thefts in schools.

Metal theft has increased to the point of threatening this fall's opening of schools in parts of California:




The above films shows that metal theft has become more brazen, the thieves are more knowledgable and are branching into new areas.

In other metal theft news this week, thieves have stolen -

• highway guard rails.


• bronze flower vases attached to cemetary headstones.


• iron sewer grates.


• HVAC parts from a center for cancer stricken children.

As the dollar continues to lose value, any unsecured piece of metal becomes the equivalent of real money in ever widening sectors of the economy. This is a nationwide trend that real estate investors cannot ignore. The ascendency of metal value affects not only the physical safety of buildings, but (most importantly) the fluctuating value of real estate.

Metal thefts cause death, power outage and related hardship.

Metal theft continues unabated in recent days and weeks:

• Thieves have stolen $45,000.00 worth of railroad rails in Cambria County.




• Thieves have stolen 18 markers made of copper, brass and bronze from the graves of war heroes in a veterans cemetary in Massachusetts.




• A man died stealing copper from a Duke Energy substation in South Carolina, causing 3,000 people to lose power.

The fire chief in South Carolina referred to the discovery - near the thief's body - of "items that would be used in the metal theft industry, cutters and that type thing."

It is disquieting that metal theft is now referred to as an "industry."

Federal and state governments attempt to treat symptoms of inflation

Various states and the federal government are considering measures to make it more difficult to sell stolen copper. These measures are being considered in response to the upsurge in stolen copper and other metals in recent years:

When thieves ransacked eight air conditioners in an apartment complex in the city of Mobile, Alabama, the culprits made off with $800 worth of scrap metal and left residents with $38,000 worth of damages. "We've had copper robberies since forever," said Officer Christopher Levy of the Mobile Police Department, "but we've seen a spike so far this summer." Record copper prices have caused a surge in U.S. copper thefts, plaguing law enforcement and local governments and prompting states to pass new laws. "Since the beginning of the 2004 spike in copper prices, copper theft and copper prices have been directly linked," a 2010 U.S. Department of Energy study on copper wire thefts said.

These laws will not address the real problem, as metal prices will continue to rise as long as the currency is being devalued. The Reuters article attempts to explain the rise with reference to increased Chinese usage, but that explanation tells only part of the story. Copper is not the only metal that is being stolen in larger amounts. Other commodities have seen rising prices for several years, including fuel, gold and silver. The new laws will only treat the symptoms. If the government truly wants to stop the brazen metal thefts that now plague homes and businesses, the government must stop reckless deficit spending.

In related news, California scrap metal thieves have stolen the irrigation system from a vineyard, threatening the entire grape crop.




For other examples of rampant metal theft in recent months, click here.

Copper thefts in Lower Merion Township, Montgomery County; downspouts, gutters

Click here for previous posts on increasing thefts of copper (and other metals) and how they reflect rising inflation. Previously, metal theft has focused on utility wires, catalytic converters, air conditioners, transformers, railroad tracks, etc. Abandoned or rehab real estate has often been targeted for copper theft in recent years.

From CBSPhilly.com comes the story of copper thefts targetting gutters and downspouts in occupied homes in Montgomery County:

A rash of copper thefts in Montgomery county has residents on alert

They may not seem like your typical targets, but thieves in Montgomery County are looking for copper. Gutters and downspouts made of the precious metal are being stolen from people’s homes along the Main Line.

Lower Merion Township Police have reported a significant increase in the thefts of copper down spouts and gutters being taken from homes throughout the area.

Metal and copper thefts get more brazen in Pennsylvania and elsewhere; Cranberry Township; SEPTA car thefts;

I have written previously about rising metal theft as an indicator of continued inflation and its impact on real estate prices.

Recent news reports indicate that metal theft not only continues unabated in Pennsylvania and elsewhere, but that it has become more brazen and is being done at great risk to the thieves:

• In Cranberry Township (near Pittsburgh) thousands of residents remain without power because thieves (at great physical risk) stole "all the copper groundwire" at a substation on Route 19.


• SEPTA riders in Chester, Montgomery and Delaware Counties have been victimized by thefts of catalytic converters while their cars were parked in SEPTA lots during the day.


• Thieves near San Francisco knocked down 300 utility poles in order to steal copper wire and also stole an entire transformer - at great risk to themselves.


• In Sacramento, thieves have stolen a large number of brass components of fire suppression systems from commercial businesses.


• Pipe thieves near Detroit have caused possibly four house explosions by stealing the natural gas pipes from residential dwellings.


• Numerous churches near Miami have lost the use of their air conditioning when copper thieves stole copper tubing and wiring from a/c units.


• In early June, thieves caused a CSX train to de-rail in Massachusetts by stealing steel rails from the railroad line.
  

These cases are not simply an indication of rising crime due to the economic downturn. Metal theft is a specific type of crime that exists solely because inflation has pushed commodity prices higher. Metal theft goes hand-in-hand with an increase in legitimate scrap dealers, companies that offer to buy your gold on late night infomercials, rising gasoline and food prices and other commodity based activity.

Remember, commodity prices affect the economy as a whole. The real estate crash of 2006-2008 was accompanied by a major commodity price increase.

The market for commodities is robust, as the smart money flees the dollar (or defies physical and legal danger) in favor of hard assets. The desperation with which thieves now target metal provides specific evidence that inflation is out of control. All real estate investment decisions must accept this reality.

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:

• This year, thieves have stolen at least 50 city trash cans (iron) from the streets of Pittsburgh, with each can now having a scrap value of between $ 1,500 and $ 2,000.


• In Washington D.C., thieves are posing as road crews to steal underground copper wire, causing parts of the city (including traffic signals) to go dark.


• In Chicago, scrap metal thieves are suspected of stealing a handicapped child's wheelchair.


• In Sacramento, thieves were arrested dismantling railroad tracks in broad daylight for the purpose of stealing the metal.

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.