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Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 07/31/2010 : 21:30:00
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Author: Gold Why Webmaster
Updated: March, 2010
©iStockphoto.com – monomov
This site is all about precious metals with a heavy focus on my favorite metal, gold. Today, I'm going to do something a little different and take a look at a non precious metal which has been appreciating in value quite rapidly, copper. The picture to the left is a large stash of copper bars. Copper is a common metal and is used in many applications including gutters, wire, and pennies. However, demand currently exceeds supply and the US dollar is under a lot of pressure, forcing the price of copper to new heights. Copper bullion bars, ingots, coins, and pennies are emerging as a brand new niche with precious metals investors and collectors. Today I will talk all about this fascinating hobby and my personal excitement around it. (When you're done reading this article, I also encourage you to read my brand new free eBook about copper bullion highlighting my top 10 copper bullion tips.)
Copper Pennies are Worth More Than 1 Cent
A very interesting fact: All pennies before 1982 (and some produced in 1982) are primarily composed of copper. All pennies after 1982 (and some produced in 1982) are only coated in copper. The reason for this is copper is worth more than the face value of the penny itself. According to Coinflation, the current value of a pre-1982 copper penny is over 1 cent. In fact, as of today (March 21, 2010), each pre-1982 copper penny is worth over two cents!
What does this mean to the metals investor? First, it indicates you should hoard all of your pre-1982 pennies. You get instant and free investment returns by holding onto your copper pennies. Second, it may make sense to buy some copper pennies and bars. I have recently brought home some $25 dollar boxes of pennies from the bank and sort through them by hand to pull out the pre-1982 pennies for investment. This is a cheap and fun weekend hobby. One guy has taken this hobby to the next level and has developed a copper penny sorting machine which sorts the copper pennies from the non-copper ones. If I had a garage, I would buy this because it's a great tool to sort through tons of pennies and get instant appreciation. If you are interested in investing in copper pennies, you'll want to get started immediately. Gresham's law states that bad money drives good money out of existence. In this case, the old pre-1982 pennies are "good" money and the post-1982 pennies are "bad" money. (Even the post-1982 pennies, largely composed of zinc coated with copper, are anticipated to have a metal value higher than face value as inflation continues.) As more and more investors start hoarding copper pennies, there will be none left. How many silver dimes, nickels, quarters, and half dollars are in circulation today? Almost none. This is Gresham's law in action. The good news: You're still ahead of the curve and have time to start investing in copper pennies.
Copper Bullion Bars
Another way to invest in copper: A variety of mints as now selling copper bullion bars. Some of my favorite mints include Jetco Metals, E Cohen Mint, The Metal Mint, The Copper Cave, and Tacoma Copper. To the left is Tacoma Copper's eBay store. Tacoma is one of the newer players in the copper bullion market and offers one of the most amazing products around! As with anything, there are pros and cons with this investment method. Let's start with the pros. I am amazed with the quality and variety of bullion bars that are available these days. If you are a serious investor, copper bullion bars provide a very easy way to accumulate a large position in copper bullion. The bars also make great gifts since they are very good looking. Moreover, copper bullion bars are much easier to sort through, store, and trade than pennies. Given that a sizeable position in copper takes up a lot more space than gold or silver, it makes sense to own bars rather than coins. The main downside of purchasing the bars is they do not provide a discount to current bullion value of copper. With pennies, however, you can accumulate them for their face value and realize an immediate return. That is arbitrage at its best! Given all of these facts, perhaps a hybrid investment solution makes the most sense. Accumulate some copper bars and also some pennies. This is what I'm personally doing!
More: See link above.
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Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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Copper Nugget
New Member
Canada
9 Posts |
Posted - 07/31/2010 : 21:52:46
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Wow that stack of bars would make a lot of pennies! It would also look good in my shed...I can only wish  |
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Shattered
Penny Hoarding Member
USA
523 Posts |
Posted - 07/31/2010 : 23:14:24
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Goldwhy is what orignally got me into metal investing. A lot of good information on that site.
That is where I first read about pre-82s and found links to coinflation and realcent. That's when EVERYTHING changed. |
"I need metal in my life, just like an eagle needs to fly."
-Joseph DeMaio : Die For Metal |
Edited by - Shattered on 07/31/2010 23:17:36 |
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misteroman
Administrator
USA
2565 Posts |
Posted - 08/01/2010 : 00:30:40
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| I would buy CU bars if the price was a little closer to spot. But everyone needs to make money and when something is only $3 a pound it's hard to do |
Buying CU cents!!!! Paying 1.2 unlimited amounts wanted. Can pick up if near Ohio area. |
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fb101
Administrator
USA
2856 Posts |
Posted - 08/01/2010 : 18:34:45
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Second Misteroman. Premiums keep me from doing too much in copper, especially with so much available at a discount. -
But it is a pretty metal, so, some you just have to have. |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 08/01/2010 : 20:54:21
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quote:
Originally posted by fb101
Second Misteroman. Premiums keep me from doing too much in copper, especially with so much available at a discount. -
But it is a pretty metal, so, some you just have to have.
It just seems that someone would offer bars similar to the ones pictured above at a reasonable premium. Scrap copper poured into large investment bars should have a market. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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Why Invest In Copper Bars and Coins?
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