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The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 9:16 amby JobIII
Hi all,
I've been hearing a lot of rumors that the Fed is removing coppers cents from circulation. I've been a little skeptical of this talk, because I haven't read any articles about an american metal recovery program. But last weekend a LCS owner told me he was told by a Fed employee that they are pulling copper cents from circulation.
Does anyone have any information on this? By that I mean press release, Fed statements etc. Something beyond hearsay.
~JobIII
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 9:48 amby highroller4321
JobIII wrote:Hi all,
I've been hearing a lot of rumors that the Fed is removing coppers cents from circulation. I've been a little skeptical of this talk, because I haven't read any articles about an american metal recovery program. But last weekend a LCS owner told me he was told by a Fed employee that they are pulling copper cents from circulation.
Does anyone have any information on this? By that I mean press release, Fed statements etc. Something beyond hearsay.
~JobIII
I call BS on this.....
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 9:54 amby TXBullion
what does bullion stacker have to do with all of this?
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 9:57 amby NHsorter
Tell your LCS owner that he should use this insider tip that he has and start buying coppers from you at 2X face before the news gets out.
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 10:03 amby JobIII
HR, that's why i'm asking.
Tx - Very funny
NH - Not a bad suggestion
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 10:14 amby JerrySpringer
Whether or not the government is starting to do an alloy recovery program here in the US does not matter. If you think about it, the 95% Cu cents already are worth 2x face value. IMHO, only a matter of time before the general public starts catching on to this and hit up banks for the coinage. You see people go to greater extents for less certainty of return (-ie- lottery tickets as one example).
At this point, some people are willing to barter with silver. I could see copper cents taking on the same role, albeit not as lucrative due to Cu's spot value right now. There was a time when Beanie Babies, tulips and Facebook stock all were getting stupid premiums. People had to have them because they could only go higher in price in their minds. Something real like a physical metal might actually have more lasting power and build a better base of believers?
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 10:41 amby palmvtree
So the real question is who sold the Fed all the ryedales? LOL! Seriously, I think there may be some truth to this. I just posted on another link that all 4 boxes that I picked up last Friday was all zinc (actually I found 1 copper wheat that was really worn). Just like Canada, and they just announced that they will stop circulating their canadian penny next February. Get ready everyone! Find a bank that will sell you bags and fast!
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 10:47 amby natsb88
The Fed? Very, very unlikely.
Coin processors (armored car companies) like Brinks? Absolutely. Existing discussion:
viewtopic.php?f=7&t=9826
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 12:14 pmby palmvtree
Ok so maybe not the fed, but what is Brinks then doing with all the copper? Storing to sell on eBay, not likely? Should be interesting to track this moving forward...and maybe it's time to buy Brinks stock?! BCO is the ticker...
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 12:25 pmby natsb88
palmvtree wrote:Ok so maybe not the fed, but what is Brinks then doing with all the copper? Storing to sell on eBay, not likely? Should be interesting to track this moving forward...and maybe it's time to buy Brinks stock?! BCO is the ticker...
Read through the thread I linked to. They only sort when they get a big order (from an investor or the like). They don't mess with eBay or small orders. The order last fall was for $5 million face value; the mixed-zinc boxes people are getting today are probably still coming from that order (or if it has been filled, then they are probably boxes from that order that have been sitting around at Brinks or in bank vaults).
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 12:26 pmby reddirtcoins
Still getting 20+% here...
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 3:32 pmby bazmonkey
reddirtcoins wrote:Still getting 20+% here...
Same, in fresh boxes. West coast.
I've often wondered why the Fed
doesn't sort out the copper cents. I mean, that's gotta be enough copper to support the minting of new coins for a long time. Why don't they reclaim it and recover a lot of the metal value that, from their view, they're losing to hoarders like us?
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 6:00 pmby Copper Catcher
If they do have a program they have not put anything out in the open about it.
However in a report dated Feb 12, 2012 there is a stated reserve given in order to deal with the cost overrun associated with the value of metals exceeding the face value of both the nickel and the penny. (See Below)
Increasing metal prices have driven production costs to exceed the face value of one-cent coins (pennies) and 5-cent coins (nickels) since FY 2006, and have deteriorated the returns realized from other circulating coinage. Should the total cost of producing coins ever exceed their face value (thereby reducing seigniorage) the United States Mint has reserved $248.8 million in its PEF to pay for capital expenditures and unplanned expenses. Although unlikely, if results are worse than expected, and the United States Mint is required to exhaust the $248.8 million in its PEF, the United States Mint could eventually require an appropriation or borrowing authority to fund circulating operations.
http://www.treasury.gov/about/budget-pe ... passed.pdf
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 6:04 pmby deacon
Why would they recover pennies? Then they would have to hire someone to refine said pennies, and produce blanks. We are talking at least 6 months of fact finding and Requests For Proposals and contracting actions. Also, anything over 10M cant be done internally. So then you have to get another organization to approve this action. Way too much work.
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 6:14 pmby palmvtree
natsb88 wrote:palmvtree wrote:Ok so maybe not the fed, but what is Brinks then doing with all the copper? Storing to sell on eBay, not likely? Should be interesting to track this moving forward...and maybe it's time to buy Brinks stock?! BCO is the ticker...
Read through the thread I linked to. They only sort when they get a big order (from an investor or the like). They don't mess with eBay or small orders. The order last fall was for $5 million face value; the mixed-zinc boxes people are getting today are probably still coming from that order (or if it has been filled, then they are probably boxes from that order that have been sitting around at Brinks or in bank vaults).
I was just joking about EBay, I read the link and have one question, who can we call to set up a group order at those costs? Will they store them for us too? LOL! I checked the boxes and no dates on them, just a numbered stamp "5550", usually they have a date stamp on them, CWI number, and an inspected by number.
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 6:44 pmby highroller4321
This operation actually has been shut down.... They reached less then half of the original agreement before the plug was pulled.
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 6:45 pmby highroller4321
palmvtree wrote:Ok so maybe not the fed, but what is Brinks then doing with all the copper? Storing to sell on eBay, not likely? Should be interesting to track this moving forward...and maybe it's time to buy Brinks stock?! BCO is the ticker...
Brinks does not own any of the coin themselves therefore they can't sell to anyone.
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 6:47 pmby highroller4321
deacon wrote:Why would they recover pennies? To make millions apon millions of dollars. Then they would have to hire someone to refine said pennies an easy task to do., and produce blanks Only if the penny is going to go on for several more years and they expect a shortage.. We are talking at least 6 months of fact finding and Requests For Proposals and contracting actions. Also, anything over 10M cant be done internally. So then you have to get another organization to approve this action. Way too much work.
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 7:21 pmby everything
Nah, they are not that smart enough to do that, fed is not into sorting, they just mint em. I think copper would have to go much higher for them to even consider it.
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 9:43 pmby JerrySpringer
Has anyone checked and seen whether Adam Young gave approval of this Fed intervention?
Re: The Fed is sorting out Copper cents
Posted:
Wed Aug 01, 2012 11:22 pmby bazmonkey
deacon wrote:Why would they recover pennies?
Well, all of the coins still contain some copper. Someone has to buy that. I don't see why the Fed doesn't get it's copper from old cent coins. They already paid for that copper, they could basically get it at under spot the same way we do. Take a copper penny and that's enough copper for, what, 40+ new pennies?
Re: The Fed is sorting out Copper cents
Posted:
Thu Aug 02, 2012 10:29 pmby exbingoaddict
JerrySpringer wrote:Whether or not the government is starting to do an alloy recovery program here in the US does not matter. If you think about it, the 95% Cu cents already are worth 2x face value. IMHO, only a matter of time before the general public starts catching on to this and hit up banks for the coinage. You see people go to greater extents for less certainty of return (-ie- lottery tickets as one example).
Sorting cents takes work. While many people may start to sort cents, most won't keep it up long. They discover it's a job and not the ticket to instant wealth. As for lotto tickets, people either buy them for entertainment or to get rich quick.
Re: The Fed is sorting out Copper cents
Posted:
Fri Aug 03, 2012 5:18 pmby IronMan
exbingoaddict wrote:JerrySpringer wrote:Whether or not the government is starting to do an alloy recovery program here in the US does not matter. If you think about it, the 95% Cu cents already are worth 2x face value. IMHO, only a matter of time before the general public starts catching on to this and hit up banks for the coinage. You see people go to greater extents for less certainty of return (-ie- lottery tickets as one example).
Sorting cents takes work. While many people may start to sort cents, most won't keep it up long. They discover it's a job and not the ticket to instant wealth. As for lotto tickets, people either buy them for entertainment or to get rich quick.
I could see the services that deliver (or individuals in management) buying out of inventory or holding back old stock. Then buy out of inventory. They certainly have the machines/man power to do it.
Re: The Fed is sorting out Copper cents
Posted:
Fri Aug 03, 2012 5:24 pmby deacon
bazmonkey wrote:deacon wrote:Why would they recover pennies?
Well, all of the coins still contain some copper. Someone has to buy that. I don't see why the Fed doesn't get it's copper from old cent coins. They already paid for that copper, they could basically get it at under spot the same way we do. Take a copper penny and that's enough copper for, what, 40+ new pennies?
My point is that the govt is in business to stay employed. Not create profit. By being wasteful, they can secure their budget, and justify their existence. Any savings can be taken away from them next fiscal year.
Re: The Fed is sorting out Copper cents
Posted:
Fri Aug 03, 2012 5:39 pmby IronMan
deacon wrote:bazmonkey wrote:deacon wrote:Why would they recover pennies?
Well, all of the coins still contain some copper. Someone has to buy that. I don't see why the Fed doesn't get it's copper from old cent coins. They already paid for that copper, they could basically get it at under spot the same way we do. Take a copper penny and that's enough copper for, what, 40+ new pennies?
My point is that the govt is in business to stay employed. Not create profit. By being wasteful, they can secure their budget, and justify their existence. Any savings can be taken away from them next fiscal year.
Unfortunately, I would have to agree that is the current state of mind.