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ericsartwork
New Member
USA
20 Posts |
 Posted - 12/12/2009 : 11:48:54
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I think there are two main reasons for hoarding Copper pennies. One, the dollar, or perhaps most fiat currencies, fail in which case people use copper coins for transactions. It is a possibility given that pennies are transportable, have a consistent amount of copper, and the copper they are printed on is worth something. So there is value there. But the world economy would have to be in total disarray for this to happen. Also if one looks at other countries who have recently experienced hyperinflation (Zimbabwe, Argentina, Iceland) did they transact in copper or other base metal coins to get by? I think the money system in place was revalued and people just transacted in the new money system even though there wealth was destroyed in the revaluation. And the people who had collected coins for their base metal most likely still have them.
Second, the value of the copper has a melt value. Obviously. Which is another reason to own it. However everyone bases their current penny hoard value on the current price of copper. But in reality if you ever had the opportunity to melt your copper and sell it I'm sure you wouldn't get the going rate for copper but the rate thats paid for junk or scrap copper which would cut the value of your copper hoard to less than half of what you think its worth.
- Just my two cents
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 12/13/2009 : 21:42:19
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Not everyone values their hoard on the current price of copper. Many value it based on the current market price of copper pennies.. or sometimes just measure it by weight.. be that pounds or tons.
Prior to the melt ban I had deal working with a scrap yard for 2 tons. He was going to pay #2 copper prices.. which were much better than half melt value.  |
If your percentages are low.. just sort more. If your percentages are high.. just sort more.
Now selling Copper pennies. 1.6x plus shipping. Limited amounts available. |
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misteroman
Administrator
USA
2565 Posts |
Posted - 12/13/2009 : 21:58:59
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My reasons are as follows:
1) A small safety net incase there is a new currency which I believe 100% there will be in the next 10 yrs.
2) Savings. Every handful or boxful of CU's I but in my penny room is that much more I saved and won't spend.
3) Investment. I can get 1.3c for something I paid 1c for the day before all day long. 30% isn't too bad.
4) I'm sort of quirky and it gives me a weird hobby to talk about lol |
Buying CU cents!!!! Paying 1.2 unlimited amounts wanted. Can pick up if near Ohio area. |
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cesario
Penny Pincher Member
129 Posts |
Posted - 12/13/2009 : 22:07:04
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| I blame it on the OCD. |
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copperhead57
Penny Collector Member
USA
255 Posts |
Posted - 12/13/2009 : 22:34:57
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They are a great investment opportunity, because you can get 2 cents worth of metal for 1 cent. Since there still is a fairly high percentage of pre 1982 cents out there, it is very easy to accumulate a decent size hoard in a short time. It also is kind of fun looking for valuable coins.
When the economy does improve, copper prices will probably reach $5.00 or more. |
copperhead57 |
Edited by - copperhead57 on 12/13/2009 22:41:51 |
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PreservingThePast
1000+ Penny Miser Member
USA
1572 Posts |
Posted - 12/14/2009 : 07:41:36
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AND, let's not forget the possibilities of finding some error/variety coins that would give you way more than a 30% - 50% return.
Say you find a penny for one cent and it could be worth $1.00, $3.00, or more. Now that is a good return on your initial investment!
Enjoy your searches, everyone.  |
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theo
Penny Hoarding Member
USA
588 Posts |
Posted - 12/14/2009 : 09:20:58
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quote:
Originally posted by ericsartwork
Also if one looks at other countries who have recently experienced hyperinflation (Zimbabwe, Argentina, Iceland) did they transact in copper or other base metal coins to get by? I think the money system in place was revalued and people just transacted in the new money system even though there wealth was destroyed in the revaluation. And the people who had collected coins for their base metal most likely still have them.
I have to disagree with you. Argentina has experienced chronic coin shortages. This is happening because people there value coins more than paper money. I have also read a few stories about people in Zimbabwe scrounging for coins and using them in transactions. Here's an old article I found on the subject. Note where it says that the old dollar coin was revalued at 10 billion old dollars.
You must be logged in to see this link.
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Edited by - theo on 12/14/2009 09:22:46 |
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double dot
Penny Sorter Member
USA
55 Posts |
Posted - 12/14/2009 : 10:35:03
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About the time the Zimbabwe article came out, I recall reading that the banks were unprepared for coins at all. They weighed the coins as a stop gap measure as their coin counters had been sold as scrap.
I would be curious to hear more details about Zimbabwe coins. Did people hide them if Mugabe ordered them turned in or did people use them for barter? Did speculators buy them at steep discounts? Were the copper ones smuggled to neighboring countries as scrap? What were the penalties for breaking coinage laws? |
Crouching Teller, Hiding Copper |
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Zyll
Penny Pincher Member
USA
214 Posts |
Posted - 12/14/2009 : 11:12:36
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| Wow thanks for the article link. Good insight. Boy, in that day of revaluation, fire up your metal detectors! |
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Kurr
1000+ Penny Miser Member
2906 Posts |
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JobIII
1000+ Penny Miser Member
USA
1507 Posts |
Posted - 12/14/2009 : 11:48:49
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I think there are more than 2 reasons, but those are probably the 2 major reasons for hoarding copper cents.
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Selling Copper cents. $0 FV available at 1.4xFV. Also interested in trading for wheat pennies and other coins Please pm me for requests or inquiries.
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Main Reasons for Copper Penny Hoarding
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