People believe (and rightly so) that once the melt ban lifts, the huge companies will step in and deplete the supply very rapidly. O.k. I buy that, but at what % copper does it begin to be unprofitable for them? Lot of companies shoot for a 30% gross margin and a 5-10% net. A copper cent selling for 3x would require 10% copper to return a 30% gross. Can a copper sorting compay be profitable at 8.9% like coinstar? That would mean at 3X a company could make a go of it at about 3% copper
Also, Once that happens, I believe it becomes our game again. Sorting coppers will be like those of us sorting for wheats or silver halves.
People believe (and rightly so) that once the melt ban lifts, the huge companies will step in and deplete the supply very rapidly. O.k. I buy that, but at what % copper does it begin to be unprofitable for them? Lot of companies shoot for a 30% gross margin and a 5-10% net. A copper cent selling for 3x would require 10% copper to return a 30% gross. Can a copper sorting compay be profitable at 8.9% like coinstar? That would mean at 3X a company could make a go of it at about 3% copper
Also, Once that happens, I believe it becomes our game again. Sorting coppers will be like those of us sorting for wheats or silver halves.
If done properly and effenciently I think 5% range would possible be the point where they stop. It all depends on the companies set up and how they aquire the pennies. Transportation is probably the biggest cost.
I'm not aware of anyone ever commercially sorting for wheats. Could have happened but I've just never heard of it.
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw. Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony Passive Income blog
When all the undebased coins (pennys and nickels) are out of circulation we will will be selling "junk bags" of them just as junk bags of silver coins are sold today. I envision a network of dealers organized by those in the forum in every major city and most minor ones in the US. Perhaps a few in Canada too, given the more pure nickel up there.
"I Killed the Bank" from the tombstone of Andrew Jackson
copper % where mega sorters exit?
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Posted - 01/26/2010 : 19:09:06
