Why should I "invest" in copper pennies?

[cheeple]

I'm big on silver, hold some Gold, would like to invest in Rhodium but it's too expensive for me, so what is the benefit of hoarding copper pennies and nickles? Seems to me cashing in that change and buying silver would be better, when silver goes up I can sell it for it's silver spot price (or a little under depending on the dealer), but pennies and nickles I cannot, if copper pennies doubled in value I could not take 100 copper pennies to a shop and ask for $4.00, is this just a hobby with no true objective? Or are penny hoarders doing this for a dollar collapse scenario? Please this isn't a Silver Vs. Penny post, it's a "what is your objective" post.

[rsk1963]

its a means of diversification. with no downside. right now you can get them at facevalue. At this point I would say it's similar to 1964-65. Sure there's a melt ban, but at 2.4x fv (actual fair market value, with canada now removing their penny from circulation) why wouldn't people grab a few bucks worth here and there?

[scyther]

I must admit as time goes on I'm thinking more and more that copper penny sorting really isn't worth the time. But it is possible to profit greatly from it if copper goes up a lot, and of course there is no down side other than the time it takes and the opportunity cost. Silver could go down lot; a penny obtained at face value will always be worth a penny.

[Engineer]

I have a modest stash of copper cents which is the byproduct of machine searching for numi value...but I don't go out of my way to sort for copper content.

[Diggin4copper]

There is a product out there that you can buy for 1 cent with no downside. It sells for between 1.3 to 2 times face value. All it costs is the time to sort it. Im good with that......

[RichardPenny43]

For me it is definetly a hobby.
It is a hobby that has no downside and potential for a decent upside.
If you don't enjoy the time it takes to amass a copper penny hoard then it probably isn't for you.
With silver in the low 30's it probably makes more sense to "invest" your FRN's there now.
Copper pennies will be available at fv from the bank for at least a few more years.

[barrytrot]

If it isn't ALSO a hobby do NOT do it.

There is no guarantee on time frame so you can't use it as any kind of "real" investment right now.

However, the day that the "melt ban" end date is known this becomes a VERY viable income source.

[MetalJunkie]

I originally started with silver when it was 31.50 on the way down to 26.50 so for silver its been a good investment so far. But then i started with the pennies/nickels and plain in simple its just fun for me and thats why i do it. No real down side but its not like i would ever sell them unless i was to make a good profit anyway. searching for (george V and VI pennies and nickels in canada) just makes finding one a great feeling. With Pennies being melted up here starting feb4 A LOT of history will be melted away......i wish i could expand my operations to cover more ground but as a handsorter thats not really going to happen.

But as for silver and copper i think BOTH have good potential as an investment. The way i see it BOTH copper and Silver have intrinsic monetary value and an industrial demand which for investing is advantageous. Foe me GOLD is a little less desirable as it doesnt have much industrial use.Jewelery and some electronics but thats really the small end of the scale compared to industry uses of copper and silver. I may buy gold if it comes down to 1000 or so but i reallly doubt that will happen. Its a investment product for the wealthy. I mean u can buy 1/10oz but really whats the point premiums are huge!(i admit i have some though)

I think both silver and copper have a great future if you can stick it out. I mean as of right now there is something like 18x more silver than gold so whats this 55:1 ratio all about.

[SilverDragon72]

I have a few CTU's of copper pennies. I like to think of it as diversification in the metals market. I save all wheats or Canadians that I find, but I do not sort for errors or specific dates. If it's copper, then it goes into the pile.
I don't expect my modest stash of pennies to make me wealthy, nor will I ever amass the huge hoards that other RC folks have.

As far as silver goes...the more ounces I can stack, the happier I get!

I also like collecting any and all nickels that I can. Everything from War nickels, to modern day Jeffersons...and .999 Ni Canadians!

[hammerrob]

Copper pennies as an investment have pros & cons, just like any other investment.

On the pro side: As others have stated here, there's no downside risk, and there's already some significant leverage built in (copper value of a penny is 2.4x your investment at current prices). A lot of people expect the price of copper to increase, either via supply/demand, or the erosion of the value of the dollar, or both.

On the con side: to make any signficant investment requires a lot of sorting time, and you have to hold A LOT of physical inventory. Worse, there's no telling when, or even if, it will be legal to unlock the full potential of your investment.

You can buy sorted pennies for as little as 1.3x face right now ... if the other cons don't scare you off, it's hard to justify the time spent sorting when you can buy them at that price. That is, if you're only in the game as an investment.

[fasteddy]

If you live in Texas...sorting pennies sucks %'s are horrible...I wouldn't do it.

[Romalae]

If you live in Texas...sorting pennies sucks %'s are horrible...I wouldn't do it.

Ugh, thanks for the reminder... Recently got a box that wasn't even 12%. And when the occasional 19% box turns up I get all excited, and then I come here to see people comment "Ehhh 28% this time, not bad I guess." Feel lucky where you're at because everything is smaller here in Texas.

Anyway, on topic, I agree with many others here in regards to the sentiment that sorting for copper pennies is chiefly a hobby rather than an investment, but it does have the potential to return some profit and hopefully a lot more in the future. Mainly I do it because I really enjoy amassing them and finding other cool treasures in penny boxes. If you're not happy sorting, then I suggest you find another activity with which to occupy your time.

[mbailey1234]

[If you're not happy sorting, then I suggest you find another activity with which to occupy your time.

Hey it's cheaper than chasing women!

So all you young bucks out there, go get married....and ask for a Ryedale for a wedding present!

My 5 year old and I just got done double sorting $250. Added a member to the tribe and snagged about 73 wheaties. Those went 29% copper which ain't to bad! As far as I'm concerned it's better than watching him play video games when it's to cold to go outside. As mentioned before in this thread, never know, this may be the time just like the 60's were for the 90%?? If not, guess we will only be out our time. Pretty cheap entertainment.

[fonestar]

I am mainly into silver as well as I think it has some of the greatest upside-potential of anything in history. And that's exactly why I am into copper and copper cents as well. I can easily see a situation unfolding in the next few years where physical gold and physical silver simply become unavailable at any price. The next logical and historical cash-alternatives will be physical copper and physical nickel. Even if silver and gold do not become unavailable, there will still be smaller purchases better suited to copper and nickel as opposed to silver.

[rsk1963]

I am mainly into silver as well as I think it has some of the greatest upside-potential of anything in history. And that's exactly why I am into copper and copper cents as well. I can easily see a situation unfolding in the next few years where physical gold and physical silver simply become unavailable at any price. The next logical and historical cash-alternatives will be physical copper and physical nickel. Even if silver and gold do not become unavailable, there will still be smaller purchases better suited to copper and nickel as opposed to silver.

& welcome to the mess!

[penny pretty]

I started as a silver bug, and stumbled into this! I got my tubes of 2011 eagles and 3 25th sets, but they are just socked away. I love sorting, and this site makes it fun. Anyway I have about 1K FV rolled copper, that If I ever need to cash(not likely) will always be worth that. You all know the math if melt ban goes down. Not even figuring the wheats, and other special cents I have found. In the end, you have to enjoy it as a hobby. Nothing like getting a bunch of old rolls at the bank!

[John_doe]

no risk investment.

[HoardCopperByTheTon]

If you live in Texas...sorting pennies sucks %'s are horrible...I wouldn't do it.

You are just trying to discourage the competition Eddy.. you know you do it.

[ZenOps]

I look at it like this.. People collect cars that no longer work.

A non-functioning car is basically a ton of iron, Iron which was for the most part of the last century $13 per ton. Many scrapyards will give you $100 for it. Some states will actually pay for you to have it scrapped, so that you can buy a car that is more energy efficent and hopefully less of a gasoline strain for everyone.

Copper has always been peasant money, but its still in the league of $8,000 per ton. Nickel, been as high as $52,000. But at least it does not really cost anything in storage fees (One tonne is about two foot cube each side)

http://latimesblogs.latimes.com/lanow/2 ... price.html

Besides, the US printed 3 billion $100 bills last year, but only made 1 billion nickels. Even from a collectors standpoint, you go for the rarer item.

And yes gold is rare, India has 1.2 billion people but only 19.6 million ounces of gold. The math is almost frightening.

[scyther]

Copper has always been peasant money, but its still in the league of $8,000 per ton. Nickel, been as high as $52,000. But at least it does not really cost anything in storage fees (One tonne is about two foot cube each side)

Yep. People make way too much of the storage issue, at least in terms of actual space. Sometimes I run out of containers, sure, but not space. And they even say that about silver sometimes. I just don't get that. If you can't find room in your to fit all your silver, buy a bigger house...

[dpwozney]

I'm big on silver, hold some Gold, would like to invest in Rhodium but it's too expensive for me, so what is the benefit of hoarding copper pennies and nickles?

Unlike silver coins or gold coins, nickels can easily be obtained and spent or returned without paying any markup, fees or commissions.

People invest in cupronickel-alloy nickels because they are safe-haven coins. As others have pointed out, in the case of massive deflation, nickels can simply be exchanged for face value at a bank. Cupronickel-alloy nickels can be thought of as a form of insurance for either massive deflation or massive inflation.

[Romalae]

If you can't find room in your to fit all your silver, buy a bigger house...

It's not that easy though; and you can't justify buying an entirely new house solely based on the need for silver/copper storage space.

Anyway, the "storage" issue for copper pennies may be overblown somewhat, but it does hold some bearing when you live in a house with multiple other occupants besides yourself. It's not so much a problem of actual, physical storage space, it's more of a problem of inconvenience and immobility.

The problem also manifests itself on your carpet or wood flooring after a while -- have you seen the kind of indentations those massive copper tubs make?! Which is why, if you have an unfinished basement, I highly suggest storing them in there as many here probably do.

[Sheba]

IMHO, both nickels and pennies are never going to lose face value, and might, depending on a lot of things which I don't understand very well, increase in value enough to enable a hoarder to realize a profit ('stacker' or 'whatever' ... 'keeper of the metal' ). I realize that sorting pennies takes time, but it is a relaxing hobby for me since I sort small quantities and hand sort those. Once in awhile I find something 'fun' (not a 14D penny, etc....but I have found some nice ones like a 16 S and a 21 S).

As for nickels, if a person can set aside even one box a month, that's 1200.00 a year. Over a period of years that amount becomes significant even if the nickels are just left in the box and never sorted. Then if nickle goes up, there again is a little profit. I don't sort or even store 'change type' nickels at this point, but am kind of wondering about it.

In both cases, what I may never use or sell can be passed on to future generations...even its not very much.

All these thoughts are probably worth about 1/2 cent since they come from a very small penny hoarder/handsorter. Those who have a ton of pennies or more, must be pretty happy with their investment! A ton sounds so very, very huge to me!

[Zincanator]

At the last two regional coin shows I attended late last year, I found a couple of dealers selling copper cent rolls alongside wheat and buffalo rolls etc. Perhaps the numismatic community may be slowly realizing a value for Cu Lincolns now too?

I know, I know... we're talking pennies here... and I'll still need a remarkable amount of coin to cash in and retire early .

[ZenOps]

You could always take the reverse view as well.

For $1 and some effort you can have 10 ounces of copper. That has got to be the deal of the century.

People in India work all day for less than three ounces of cupronickel.