| Author |
 Topic  |
|
|
n/a
deleted
85 Posts |
 Posted - 01/19/2008 : 09:23:31
|
I'm considering getting into penny sorting on a large scale. Currently zinc cents are consider to be a sort of waste product of the sorting process that at best are a problem recycling back into more unsorted pennies. But what if the price of zinc was to go high enough again that the zinc cent would be worth more for its melt value than for its face value?
All business are trying hard to find a maket for their waste products. An example of that is the sale of scap metals used in the production of products. Of course currently zinc cents are worth more as money than as metal but that could change.
What I'm trying to say here is that we should be keeping a close eye on the price of zinc around here. The closer we get to the zinc cent being worth 100% or more of its face value as metal, the more practical and profitable penny sorting and hoarding becomes. In additon, the higher the price of zinc the more likly the Mint/Congress will either drop the penny or switch over to a cheaper metal and perhaps lift the melting ban.
|
"The key to building wealth is to not lose money." - Warren Buffet |
Edited by - n/a on 01/19/2008 09:25:33 |
|
|
starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
 Posted - 01/19/2008 : 09:31:47
|
| CopperBar, I have pondered this subject as well. Technically, I think there is already a profit at around 1.1 cents per zinc. Please correct me if I'm wrong. However, in the long term I'd bet that holding zinc couldn't hurt. You've always got face value! |
 |
|
|
n/a
deleted
85 Posts |
Posted - 01/19/2008 : 09:47:46
|
| I believe that the current melt value of a zinc cent is at about 60.39% of its face value. It has been over 100% in the past. If zinc goes high again we should be looking at the lowly zinc cent in a new light. |
"The key to building wealth is to not lose money." - Warren Buffet |
Edited by - n/a on 01/19/2008 09:48:33 |
|
|
|
Ardent Listener
Administrator
USA
4841 Posts |
Posted - 01/19/2008 : 12:33:38
|
| Zinc as a metal doesn't have the 'curb appeal' that copper or silver has but it is a much needed metal in industry. I have read articals saying that we are going to run out of zinc in twenty years or so and others that say we are heading for a glut of it. Either way, I don't have a problem holding on to zinc cents as long as I don't need them to buy something or I run out of room in which to store them. Money with an intrinsic worth of even 60% of face is far better than paper money with an intrinsic worth of 0% of face. |
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. |
|
|
|
pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 01/19/2008 : 12:49:12
|
I could be wrong, but I feel that zinc cents right now are where copper cents were in 1977, overlooked, boring, nobody thought they would ever be worth face value, let alone double in value.
It could be a long term metal play but time and inflation are both on our side.
Setting aside 10% of the zinks you find through your sorting isn't a bad zinc play. $50 in zinc cents as a sacraficial horde to dump when you need a little extra cash isn't too bad an idea. |
|
|
|
Miser-stro
Penny Sorter Member
74 Posts |
Posted - 01/19/2008 : 15:54:12
|
I don't know about the rest of you hoarders, but I'm on a fairly tight budget even to hoard copper, much less zinc that's worth only about half its face value, merely basing your hoarding on speculation. Not to say that others don't have a valid point, and it could happen. Now if I could afford to put away $1000 bucks or more or so in cash and just sit on it for 5 or 10 years.... Sure, I'd convert it to Zinc First.
Currently copper is still available all day long at face value, with a little sorting. So why not just hoard copper as long as its still in circulation??
ON THE OTHER HAND.....I've been starting to pull any and all exceptionally nice BU zincs. If you haven't noticed a nice roll of BU zincs a couple years old are bringing 3x before shipping on ebay right NOW!!! Play them for their numismatic value. I think you'll be much further ahead.
|
Edited by - Miser-stro on 01/19/2008 16:01:10 |
|
|
|
HoardCopperByTheTon
Administrator
USA
6807 Posts |
 Posted - 01/19/2008 : 20:15:38
|
| I have to go along with Miser-stro on this. We are all on a budget. We each only have so much hoard capital available. I would rather have boxes of copper pennies than boxes of unsorted pennies and I would rather have boxes of unsorted pennies than boxes of zinc pennies. I unintentionally have a substantial amount of zinc in my hoard at all times. This is made up of the zinc I haven't cashed back in and 80 percent of my unsorted boxes which I assume is zinc. I also have a few boxes of BU zinc pennies.. if you are going to have zinc in your hoard it might as well be BU since that way you get the numismatic play as well. Like Miser-stro I also pull the nicer AU/BU zincers from my reject pile and put them in a seperate bucket. |
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. |
Edited by - HoardCopperByTheTon on 01/19/2008 20:16:08 |
|
|
|
cyberdan
Penny Collector Member
USA
289 Posts |
Posted - 01/31/2008 : 12:45:53
|
quote:
Originally posted by CopperBar
All business are trying hard to find a maket for their waste products. An example of that is the sale of scap metals used in the production of products.
That is so true. There is a HUGE gravel pit serveal miles from here. It's main product is gravel for road building and the concrete market. But it has a waste product that is easy to dispose of GOLD. It is considered one of the largest gold producers down here. |
|
|
|
c140cessna
Penny Collector Member
USA
419 Posts |
Posted - 01/31/2008 : 21:39:48
|
I know we will be kicking ourselves some day over dumping the zincs.....if i had unlimited funds I'd hoard both ZN and CU.
"Sound" = Face Value is equal to Intrinsic Value.
Since I'm $ limited...I'll just mostly do CU right now.
Here is the real issue: Cu Penny is 2.2X "sound" while the Zn Penny is just 0.6X "sound"...that about a 3.6:1 ratio of soundness...
That said, 0.6X Sound Zn is way better than Fiat Paper.
Another thought: at about 30% Cu population....an unsorted box is 100% "sound".
|
|
|
|
SmallCHange
Penny Sorter Member
USA
70 Posts |
Posted - 02/01/2008 : 06:21:34
|
I have also noticed the in general poor condition of the zinc pennies after being in circulation for awhile. They just do NOT hold up nearly as well as the Coppers. Also, noticed the high EBay premuims for uncirculated zincs, I can only assume as these have some numismatic value. I would assume very few people are/were hoarding uncirculated zincs over the years and most of the supply went into general circulation in which they do not hold any numismatic condition well.
I do not sort nearly as many pennies as many of the people on this board, but it might not be a bad idea to save a box (or some rolls) of the newly minted zincs when you come across them rather than dumping all of them back at the bank, if you have enough cash that doing so will not interfere with your primary goal of sorting and hoarding the coppers. Uncirculated might be worth a numismatic premium and if zinc every does come into play you have at least a small alternative hoard aside from only copper... plus it can be your first dump material at a bank for face value should you ever need the cash.
I would NOT save the junk Zincs from circulation if you have the time and equipment to sort them out from the coppers tho. If you have the time to cherry pick some nice Zincs by hand to save, I guess thats OK.
But for sure newly minted zincs, uncirculated zinc rolls or boxes, the ones we all sometimes come across and hate... I think a valid arguement can be made either way, depending on your particular situation, on whether to save some or not.
Also, for sure, if you somehow run across boxes or rolls of older uncirculated Zinc 1980s or 1990s, take a look at pricing on Ebay first before taking them back to the bank. |
|
|
|
Know Common Cents
Penny Pincher Member
195 Posts |
Posted - 02/01/2008 : 08:51:28
|
I'm all for the tangible argument of Zinc's value. (Thought I heard yesterday that it was up 4.4% in value.) Regardless, my main goal is Cu. With a limited amount of storage space and generally low tolerance from the other household members anyway, I'm stuck establishing some priorities. The mint could halt Zinc cent production tomorrow in favor of a Canada cent clone and there'd still be an almost limitless supply of Zinkers probably for my lifetime.
There is a small amount of merit for squirreling away some of the nicer Zincs that are encountered during the search process. They degrade in appearance so quickly in circulation that they look horrible even in a game of penny ante poker. I toss the clearly BU ones into a coffee can, but that's about my limit. |
Here in Wisconsin, we have some of the highest property and gasoline taxes in the US. We're squeezed so much, I have to make my daughter wear penny boxes for shoes. At least she has an endless supply. |
|
|
| |
Topic |
|
Zinc; the forgotten profit factor?
Forum Locked
