Changing Copper Into Silver

[Know Common Cents]

Was that Rumplestiltskin who was able to spin straw into gold? Regardless, I've embarked on a new adventure that seems to be working in that direction. Feel free to try this yourself.

There's so much focus on gold and silver these days. To that end, I've been focusing on those coins that have been pretty much ignored these days--Lincoln Cents and Jefferson Nickels. I've been able to turn them into silver. Here's how it works:

I post an ad on Craig's List for buying collections of Lincolns and Jeff Nickels. I use the "Need Some Holiday Cash?" angle and advertise that I'll buy collections in the famous (infamous) blue Whitman folders, Bookshelf albums and the like. I'm discovering that lots of people have their own or their childrens' penny collection lying around somewhere in a dark closet or in a box in the basement.

I say that I'll look over their collection and pay them cash on the spot. Even added a disclaimer that most collections don't contain anything valuable and may only bring a few dollars. I've been able to acquire collections that have very nice 1910-15 S mint cents and even a 1909 S along with a couple of 1922 Ds. Before everyone gets excited, I'll state that I pay between 30-50% of Grey Sheet value for the key coins in these collections. The sellers are happy not only to get rid of these collections, but also to leave with cash in their fist.

The key to successful buying like this is to thoroughly educate yourself in grading early Lincolns before you begin this adventure. Being able to detect cleaned or damaged coins at a glance is imperative or you'll be burned. I also spent some time developing my resale network infrastructure for these purchases. I now have a conduit of two buyers (coin dealers) and a Lincoln Cent maniac.

While my focus has been on early Lincs, I also ask potential sellers whether they have a Buff or Jeff nickel collection they'd like to bring along for me to evaluate. Most do and usually all the slots are filled for the Warnix issues.

I track my purchases and sales on a spreadsheet and have made over $400 since Thanksgiving (after expenses). All the profits have been plowed into silver. I've divided my buying area into quadrants and schedule my buying sessions to maximize the visits and thus avoid covering great distances for little possible reward.

As part of the selling arrangements for my "finds" it also includes being able to buy US 90% at spot from the dealers. So far, this has worked well as they seem to have waiting buyers for the Lincs. Oh yes. Don't forget to ask potential sellers whether they have any Indian cents or anything else rare or unusual.