Fed Reserve rolled pennies/coppers removed?

[shinnosuke]

Wow! Kyle Bass and his $1MM nickels just got rolled and smoked.

My percentages have always been 10-12%, which was one reason I never purchased a Ryedale auto.

[PolishPunisher]

Where is the Congressional/Mint outrage? Isn't sorting pennies unpatriotic, worthless, and only for the stupid?

[Copper Catcher]

Well I suppose I should shed some light on the topic....

Hi Everyone,

I just wanted to let everyone know about so information I have come across.

A very wealthy guy.from North Carolina. who I guess is in the investment business has made a deal with coinstar to buy $5,000,000 FACE VALUE in copper pennies. Yes, that is 1,666.66 TONS! He has made a contract with them for them to supply him with $5 MILLION face value over the next 2 years. (Yes, I said FIVE MILLION DOLLARS FACE VALUE)

Besides none of us getting the order the biggest kick in the pants is that he is only paying coinstar $65,000 over face value. 1.013x face.

I believe Brinks will be doing the sorting for coinstar. I am not sure if the investor has to pay brinks or not. Brinks has a machine called a supersorter that can sort out copper....they just have to turn the switch on.

I am not sure where they were going to start but I guess they have started in NC. Copper Catcher I'm sure will chime in and verify this...

The time is going to be coming sooner than we think that percentages will be under 10%!

I first discovered this when a order came in on the loading dock, multi thousand in bagged pennies, that turned out to be all zinc! I thought it was a cruel joke at first then confirmed why with Highroller...Still hunting a new source, beyond customer rolled coins.

[xpred558]

I wonder how much that order will effect the flow of coppers?

[njoElec]

I had a gut feeling knowing this day would come...

There's still nickel hoarding, though not as profitable(IMHO)..

[TXBullion]

ok ok, if anyone wants to buy copper, I will sell you some 3x face plus shipping

[hobo finds]

1.3% fee seems way low. They can't even transport for that. I believe they charge far more than that just for 5M in zincs, not to mention the sorting. You sure about the fee?

As to the volume, even 5Mil face - one time - is a drop in the bucket, but if this starts a trend, then the supply WILL dry up.

The 1.3% fee is low. But Coinstar already made there 9%+ fee on the change that was turned in

[cesariojpn]

Quickly, flood the Coinstars with Zincs!! If you can spare a few hundred and need stuff from Amazon or Lowes, do it!!

[HoardCopperByTheTon]

ok ok, if anyone wants to buy copper, I will sell you some 3x face plus shipping

3x including shipping.

Several of us experienced this a couple of years ago all across the country. I got an entire 24 box shipment of circulated zinc. The machinery is out there.. it just takes the right conditions for them to throw the switch.

Sort all you can.. while you can.

[Gipper1985]

ok ok, if anyone wants to buy copper, I will sell you some 3x face plus shipping

3x including shipping.

Several of us experienced this a couple of years ago all across the country. I got an entire 24 box shipment of circulated zinc. The machinery is out there.. it just takes the right conditions for them to throw the switch.

Sort all you can.. while you can.

I wondered why you always discourage people from rooting for the melt ban to be lifted, but this small example confirms your contention that lifting the ban will mean game over for sorters.

[Verbane]

I wondered why you always discourage people from rooting for the melt ban to be lifted, but this small example confirms your contention that lifting the ban will mean game over for sorters.

+1

[highroller4321]

1.3% fee seems way low. They can't even transport for that. I believe they charge far more than that just for 5M in zincs, not to mention the sorting. You sure about the fee?

As to the volume, even 5Mil face - one time - is a drop in the bucket, but if this starts a trend, then the supply WILL dry up.

Yes, I am 100% sure of the fee. Coinstar would normally have to PAY to get rid of the pennies so not only are they avoiding the fee they are making a small amount on them.

The investor is paying all shipping costs.....

5 Million isn't really a drop in the bucket! Its a small percentage but defintly not a drop in the bucket.

[PolishPunisher]

How much total do you think he is paying with all fees and shipping? 1.3? 1.4? 1.8? 2.5?

[68Camaro]

1.3% fee seems way low. They can't even transport for that. I believe they charge far more than that just for 5M in zincs, not to mention the sorting. You sure about the fee?

As to the volume, even 5Mil face - one time - is a drop in the bucket, but if this starts a trend, then the supply WILL dry up.

Yes, I am 100% sure of the fee. Coinstar would normally have to PAY to get rid of the pennies so not only are they avoiding the fee they are making a small amount on them.

The investor is paying all shipping costs.....

5 Million isn't really a drop in the bucket! Its a small percentage but defintly not a drop in the bucket.

Yeah - after I posted that, thought about it, I realized that it's a significant impact locally, in that entire area. It might even eventually affect me and others in the southeast. Hasn't yet, but give it time. And that for coinstar, given that they are doing this over two years, it's a bonus that 20-25% of all their pennies that they don't have to pay the fees to dispose of, so I'm sure it's a positive for them. However, I think they left money on the table - fairly sure they could have gotten more for them.

[highroller4321]

How much total do you think he is paying with all fees and shipping? 1.3? 1.4? 1.8? 2.5?

I doubt even 1.1

I don't know where the copper will be stored but I assume NC. If they are just sorting around NC a person can ship a full truck (20-22 tons) for rather cheap.

If he is having to pay brinks to sort than it might bump up to 1.1-1.2.

[highroller4321]

1.3% fee seems way low. They can't even transport for that. I believe they charge far more than that just for 5M in zincs, not to mention the sorting. You sure about the fee?

As to the volume, even 5Mil face - one time - is a drop in the bucket, but if this starts a trend, then the supply WILL dry up.

Yes, I am 100% sure of the fee. Coinstar would normally have to PAY to get rid of the pennies so not only are they avoiding the fee they are making a small amount on them.

The investor is paying all shipping costs.....

5 Million isn't really a drop in the bucket! Its a small percentage but defintly not a drop in the bucket.

Yeah - after I posted that, thought about it, I realized that it's a significant impact locally, in that entire area. It might even eventually affect me and others in the southeast. Hasn't yet, but give it time. And that for coinstar, given that they are doing this over two years, it's a bonus that 20-25% of all their pennies that they don't have to pay the fees to dispose of, so I'm sure it's a positive for them. However, I think they left money on the table - fairly sure they could have gotten more for them.

You are dang right they did!

[hags]

$5 million face equals 2.8/10 of 1% of total coppers minted....or a bit over 1/4 of 1% of total coppers ever minted....so the amount is a wee smal dent in the overall total.....

hags

[JerrySpringer]

$5 million face equals 2.8/10 of 1% of total coppers minted....or a bit over 1/4 of 1% of total coppers ever minted....so the amount is a wee smal dent in the overall total.....

hags

You are correct but this might be the beginning of a trend. Maybe a millionaire has so much money that $5 million in coins being stored is nothing to them but Kyle Bass has stored some nickels already. Suppose other 1%'ers get intrigued by this and start deciding to hoard the copper and nickel? It will not take long for famines to develop for the copper. I am surprised they have not ordered pallets of halves already. The silver payout on some of those boxes could be a bonanza.

[highroller4321]

$5 million face equals 2.8/10 of 1% of total coppers minted....or a bit over 1/4 of 1% of total coppers ever minted....so the amount is a wee smal dent in the overall total.....

hags

You can't go off the mintages. There is a certain % that have been destroyed. Certain % that have been lost. Certain % that have gone to other countries. And the most importlant one....a certain % that was melted prior to the melt ban!

Even if the number equals to 1-2% of the coppers that is still a big number overal. Aver number of coppers in circ is around 25%. You take away 1-2% of those and add in a few billion new zincs your precentages will be below 20%. Do that a few times and we will be under 10%.

[TXBullion]

I thought we were supposed to save the zincs and dump the coppers? I was doing so well at 85%, ughhhhh back to the drawing board

[hags]

$5 million face equals 2.8/10 of 1% of total coppers minted....or a bit over 1/4 of 1% of total coppers ever minted....so the amount is a wee smal dent in the overall total.....

hags

You can't go off the mintages. There is a certain % that have been destroyed. Certain % that have been lost. Certain % that have gone to other countries. And the most importlant one....a certain % that was melted prior to the melt ban!

Even if the number equals to 1-2% of the coppers that is still a big number overal. Aver number of coppers in circ is around 25%. You take away 1-2% of those and add in a few billion new zincs your precentages will be below 20%. Do that a few times and we will be under 10%.

true.....doing quick math is counter productive....a bit more in depth research reveals a much higher percentage is being collected to accomodate the $5 million order....

Total mintage of all lincoln cents equals 449.99 billion coins.....the U.S. Mint estimates that only 140 billion cents are actually in circulation, so only 31.11% of the total cents ever minted are still circulating.
Of the total mintage, 174.51 billion were copper and 275.48 billion were zinc, so at 31.11% in circulation we would have 54.29 billion copper cents and 85.70 billion zinc cents still circulating.
But 54.29 billion copper cents equals 38.78% of the cents in circulation,which is a percentage higer then realized on average. To average 25% copper from circulating coins the 85.70 billion zincs would equate to the other 75% in circulation, so 85.70 billion divided by 75 would mean 1% of the coin population equals 1.143 billion coins, thus the 25% copper in circulation would equal 1.143 times 25 or 28.58 billion coins. So from this we can summize that of the 54.29 billion copper coins in circulation, 25.71 billion have been removed leaving us 28.58 billion copper cents in circulation....The half billion coins needed to fill the $5 million dollar order therefore equals 1.75% of the presently circulating copper cents....but if you consider by removing 25.71 billion coins from circulation we would only have 114.28 billion cents then circulating, which is 22.51% less then the U.S. Mint estimates, we would only have to multiply the estimated coins in circulation by 22.51% to eqaul the 140 billion estimate...so 104.99 billion zinc and 35.01 billion copper cents circulating....and thus the half billion needed to fill the order would equal 1.43% of the presently circulating copper cents.......


hags

[Common Cents]

I've consistently proclaimed that the 'window' to amass CU penny holdings would shut much quicker than many here can imagine. I've also stated the melt ban will prove to be much more irrelevant than people think. This 'rumor' only confirms my fears that our days our numbered.

[JerrySpringer]

...and thus the half billion needed to fill the order would equal 1.43% of the presently circulating copper cents.......
hags

And it would only take a few dozen millionaires that wanted to store a $1 million of Cu pennies to create a Hubbert situation for us sorters. Good god, I hope reality TV does not want to do a series on this. Then its all over in a matter of months.

[cesariojpn]

hard math stuffs

Given the volume, about how big of a "site" would one need for that many pennies?

[JerrySpringer]

hard math stuffs

Given the volume, about how big of a "site" would one need for that many pennies?

Multiply times 5 :

http://www.kokogiak.com/megapenny/eight.asp