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Hirbonzig
Penny Collector Member
USA
451 Posts |
 Posted - 08/18/2007 : 15:16:36
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When that glorious day comes and the ban on melting US cents and nickels is lifted, how long do us hoarders have to sell before the copper price goes into the tank from all of the millions and millions of pounds of new copper scrap hitting the market? Would you sell 50% of the hoard and ride it out on the other half or keep it all and wait for the price to rise again once China and India absorb the supplies and demand grows again?
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Jason
Penny Pincher Member
USA
138 Posts |
Posted - 08/18/2007 : 15:35:55
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| I am by no means an expert, but i don't believe lifting the ban will have much affect on the price of copper. Sure there are alot of folks holding alot of copper coins, but not all of them are going to go to the scrap yard the day after the ban is lifted and cash in their copper, especially if the price happens to be low at that point, and many won't want to give it up period. They could be holding on to the copper as a long term investment. If everyone who had silver coins in the early 80's would have sold when the price was high we wouldn't be able to buy 'junk' silver coins today. I haven't seen any estimates on how many copper cents are out there today, but i wouldn't think there would be enough to effect the market too much even if they were all dumped at once, especially in high demand times like these. That's just my opinion. I'm sure there are folks on this forum who know more on this subject than i do, and i'm ready to see what they have to say. |
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Hirbonzig
Penny Collector Member
USA
451 Posts |
Posted - 08/18/2007 : 18:23:50
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quote:
Originally posted by Jason
I am by no means an expert, but i don't believe lifting the ban will have much affect on the price of copper. Sure there are alot of folks holding alot of copper coins, but not all of them are going to go to the scrap yard the day after the ban is lifted and cash in their copper, especially if the price happens to be low at that point, and many won't want to give it up period. They could be holding on to the copper as a long term investment. If everyone who had silver coins in the early 80's would have sold when the price was high we wouldn't be able to buy 'junk' silver coins today. I haven't seen any estimates on how many copper cents are out there today, but i wouldn't think there would be enough to effect the market too much even if they were all dumped at once, especially in high demand times like these. That's just my opinion. I'm sure there are folks on this forum who know more on this subject than i do, and i'm ready to see what they have to say.
I am no expert either, but it just seems like once the word gets out that John Q. Public can make a few bucks by turning in their jars of pennies they will opt for the quick cash. I can see scrapyards with an ad showing Lincoln(penny) morphing into Franklin($100) to get people to turn in pennies by the 100's of millions. I think the bulk of copper pennies going to the scrap yard will be from the millions of people with their millions of penny jars. Maybe someone here would have a better understanding on the effect of billions of pennies going into the copper supply. I hope I am wrong on the price going into the tank, but there are alot of pennies out there to cash in. |
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n/a
deleted
26 Posts |
Posted - 08/18/2007 : 18:36:20
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| People didn't run to the scrapyards with their pennies prior to the melt ban and copper was high then. It would take large corporations or the goverment to make a big impact on the price of copper. |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 08/18/2007 : 18:37:46
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Don't forget eBay and the greater fool theory, why worry about scrap buyers when there will be eager speculators waiting to snap up our copper cents on the open market?
Consider what happened to housing, speculation drove the market sky high, expect the same thing to happen with copper cents and nickels, especially if the coins content changes or if the coins are made obsolete.
I should have chosen "Cut-n-Paste" as a forum name, since that is what I do, mostly. |
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Copper price after melting ban is lifted
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