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CoinHunter53562
1000+ Penny Miser Member
USA
1805 Posts |
 Posted - 02/04/2008 : 23:03:00
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Hi guys...one of the members from Coin Community recommended this form so I thought I would check it out. I am new to the idea of hoarding copper pennies so I have some questions for everyone.
1) What's the best way to store the copper cents?
2) What value over face value do you expect to get if the melt ban gets lifted?
3) When do you estimate the melt ban to get lifted?
4) What do you guys think will happen to the price of copper if the melt ban gets lifted and all of a suddden a bunch of people turn their copper pennies in?
I guess what I was wondering is if it is worth it? I am not being pessimistic by any means, but looking for some honest and objective insights to this practice. After reading through alot of the threads, it seems like some are really into this so I would love to hear their thoughts on the above questions. Thanks in advance.
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My hobby: collecting real money 1 copper cent or nickel at a time.
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 02/05/2008 : 06:56:35
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Welcome, better late than never....hehe. There are so many possible answers to your questions.
1. Some re-roll and box them. Some store them loose in some sort of container, from cat litter pails to 55 gallon drums....All depends on space and availability of said containers.
2. I think melt ban has little to do with value. The ban just keeps the commercial aspect out, leaving us relative "little guys" alone....for now.
3. Personally, not sure. Hope it's a while, something like 3-5 years.
4. See answer #2. Copper price affected way more by global demand/supply factors. I for one will not be first in line to sell on the day it's lifted....
Is it worth it? Depends on who you ask. I think so. I started out hand sorting....then got a Royal Sovereign....then a Ryedale....very addicting. You can not lose money doing this. Even if copper tanks (doubtful) you still have the full face value. With typical returns in the 20% range, most of the money is recycled over and over. Hope I answered well enough, and welcome again.
Deal |
Live free or die.
Plain and simple.
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your council or your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen."
- Samuel Adams |
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CoinHunter53562
1000+ Penny Miser Member
USA
1805 Posts |
Posted - 02/05/2008 : 08:02:26
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Hi Deal...thanks for your answers. You make a good point about not losing money as at the very least it's worth face value. Some might argue that by storing pennies at home vs having the money in the bank that you are losing interest, but in reality how much interest are you losing vs the possible gains that can be achieved?
I dont think I am ready yet to get a Ryedale or go after this big time, but I can see doing a box or two each weekend more as a hobby for now. |
My hobby: collecting real money 1 copper cent or nickel at a time.
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 02/05/2008 : 09:40:27
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"but in reality how much interest are you losing vs the possible gains that can be achieved?'
The way that I figure it there is no such thing as a 100% safe way to store wealth. No matter where you put it there is risk. Most people do not want to think about their wealth being at risk and I can't blame them. There is surely more enjoyable things to think about and do than worry about money.
Given that, the fiat money system is extremely attractive to people. It offers people both the illusion of safety and the illusion of gains by giving them a "fixed" reference to focus on (the dollar) and an interest rate on that dollar. Most people are very happy with the illusion that their money is not only safe but increasing.
However the truth is (interest or not) money in the bank is no more safe than many other stores of wealth. Inflation consistently outpaces interest rates. So even though your money appears to be growing, your wealth is actually shrinking.
For myself I feel that copper pennies (like anything) are not 100% safe, but they are, at a (50%) discount, about the safest store of wealth available right now. The biggest problem with them is that it takes a nearly impossible amount of time and effort to convert a significant chunk of wealth into them and the potential bulk that would result. |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 02/06/2008 : 16:57:10
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Just a thought on "money in the bank".
Interest rates for savings accounts, CD's and the like are so low you might as well save pennies at home instead of puting them in the bank. There is the chance of finding wheats, Indian Heads or error cents to add to your wealth and the finds are as good as earning measily interest from the banks.
Given enough time, wouldn't it be fair to say that the copper cents we hoarde could be sold for their numismatic value someday even if copper prices stays the same?
Just as Horgad said, all investments have some element of risk, all we can do is recognize the risks and plan accordingly. |
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