So I have been doing some research into buying a ryedal coin sorter and am truly debating whether or not I want to buy one. And so I looked further into the melt values of pennies/one cent coins and nickels/five cent coins.
From what I have read Ryedale coin sorter have processed upward of 1 million coins.
With that understand I took 1 million pennies or $10,000fv and compared it to $10,000 fv nickels and this is what I came up with tell me if I am missing something.
Pennies: Based on 25% return$10,000fv processed
$7400 zincs returned
$2500 copper Melted (It is currently illegal to melt these coins...for hypothetical purposes only)
$100 wheats Kept
$2500 fv of copper pennies = 1700 pounds
95% copper
5% zinc
1615 pounds of copper
85 pounds of zinc
Spot Prices as 1/21/13
Copper= $3.68 lb
Zinc= .91lb
1615x$3.68=$5,943.20
85x.91=$77.35
Total melt value= $6,020.55
- $2500 inventory
$3520.35
this assumes zero waste.
If we were to work in a reasonable 10%+/- factor then profit could be $3,168=/-
Factor in $500 for a Ryedale
Factor in $100 replacement parts/1 million coins processed
factor in state of the art burner for melting (cost unknown)
Factor in Fuel (cost unknown)
factor in delivery costs (I have spoken to Loomis and can get $10,000fv worth of coins delived to my home for $32. If I want them to pick up my return coins it would be a total of $64. Which they would deposit back into my account for me...no fuss no hassle.
Factor in castings for molds and such.
I estimate $2500+/- profit per $10,000fv processed
But would you need to refine the copper and zinc before selling to a junk yard?
Nickels: I keep everything 1969 and before (just a prefrence...no special reason)based on 5% return$10,000 processed
No rydale needed
$9500 melted
$500 kept
$9500fv in nickels weighs 2094.75pounds
75%copper 25% nickel
1571.06 pounds copper
523.68 pounds nickel
as of 1/21/13 spot prices:
Copper= $3.68lb
Nickel= $7.88lb
1571.06x$3.68=5781.50
523.68x$7.88=$4126.59
Total Melt value= 10,008.09
-$9500 inventory
$508.09profit per $10,000fv processed
Build in a 10% waste factor
Factor in Deliver costs listed above
Factor in castings and such
Factor in a state of the art furnance
Factor in Fuel costs
Projected profit for first $10,000fv nickels processed
$250+/-
Potential profit from pennies with 10% waste and costs= $2500
Potential profit from nickels with 10% waste and costs= $250
No Brainer=pennies
Any thoughts
Metal Monkey
(It is illegal to melt these coins this is only hypothetical)