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thedrifter
Penny Sorter Member
USA
96 Posts |
 Posted - 03/05/2010 : 10:33:31
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What is the utility of the "melt value", for us. What I mean is , yesterdays melt value according to coinflation was .0222064 per cent, or 222.06%; however I have seen on this forum asking prices and offer prices of far less. If I were to melt my cents down and take the copper to a recycle yard I would be offered far far less than "melt value".
Just trying to be philosophical.
So, three questions 1) isn't the price or value that is really important the price that one can get for, or one is willing to pay for the cents or copper? 2) is it actually possible to obtain "melt value" or close to it some place other than the fee bay? 3) if so where?
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The Drifter |
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El Dee
Penny Hoarding Member
USA
547 Posts |
Posted - 03/05/2010 : 10:56:46
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Melt value is theoretical, but it's the only value that can be precisely calculated. So, use it as a yardstick.
#2 Copper is a better figure to use to value your hoard.
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Trust the government? Ask an Indian. |
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thedrifter
Penny Sorter Member
USA
96 Posts |
Posted - 03/05/2010 : 11:15:06
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#2 Copper is a better figure to use to value your hoard.
So where can I find # 2 copper spot prices? (Soething like Kitco)?
Hey I like your sinature at the bottom by the way. I work for the gov. (day off) and I sign my gov e-mail with, "I am with the government and I am here to help". If it is ok with you I thought I would alternate the two, to mix it up. (I like being an incoclast at work). I tmakes work a little less work. |
The Drifter |
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slickeast
1000+ Penny Miser Member
USA
2533 Posts |
Posted - 03/05/2010 : 12:20:37
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First thing to understand is, melting pennies is illegal and carries a hefty fine. The reason that the "ask" price is so much lower than the coinflation price is supply and demand. Right now the supply is great, you can pull copper pennies out of circulation at face and at about a 20-25% rate.
Next is the demand. Copper penny bullion is a niche market. There are buyers, but they are limited. Unlike the 90% junk silver market, which is HUGE with millions of buyers everyday.
As time goes by, and the percentage of copper pennies in circulation drops to less than 5% ( guesstamation ) and the cost of copper rises we should see a stronger copper penny bullion market.
If the melt ban is lifted, you will see the copper penny disappear faster than a box of Krispy Kreme doughnuts at a weight watchers convention.
Most are saving the copper penny on speculation that the cost of copper will increase to the point where the it is worth 5X face or higher.
Think of it as more of a hedge than a way to increase wealth. |
You don't have to be the BEST you just have to be.......SLICK
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Melt Value
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