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topeka
Penny Pincher Member
160 Posts |
 Posted - 05/11/2008 : 10:07:01
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Accumulate $10,000 copper pennies
Sell pennies for 5x face ($50,000)
Purchase $50,000 nickels
Sell nickels for 3x face (150,000)
pay off mortgage
What could be easier 
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Silver..poor mans gold
Copper..peasant silver |
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nckt
Penny Collector Member
USA
304 Posts |
Posted - 05/11/2008 : 11:26:51
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| is this once they stop making nickels? |
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jorhyne
Penny Pincher Member
174 Posts |
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 05/11/2008 : 12:06:42
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Your mortgage will probably be lower by the time the copper pennies hit 5x.
The I don't think the nickel play is going to work. If copper is high enough to bring 5x then there would be no nickels available at face. Glad my mortgage is a lot lower than yours. Then you also have to contend with the RICO filing when you pay off that mortgage all at once. The first part of your plan is sound though.. accumulate as many copper pennies as you can at face.  |
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. |
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JerrySpringer
Penny Hoarding Member
669 Posts |
Posted - 05/11/2008 : 12:30:31
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If you have a mortgage payment that is manageable and your other debts are very tolerable, just accumulate the copper and let the market move the price to wherever it will go. It is not even as much dollar cost averaging as it is buying in contrarian style when you set aside the copper. Metal prices will probably regress to a long term growth not unlike stocks. The big exception is you will have real money coins that can be exchanged for something nominal in face value or maybe sold for a nice premium for the copper some day. You are losing out minimal by foregoing the 2% interest rate climate we are in.
Does everyone share my duality of opinion that metal prices could keep going up in the long term or just go bust one day and fleece all the late-to-the-party commodity buyers? At least one will have the legal tender aspect of the penny to hold onto in case of the latter. |
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topeka
Penny Pincher Member
160 Posts |
Posted - 05/11/2008 : 14:03:42
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There is a time factor here between each step.
5x face penny value would translate into roughly 14 cent nickel value
Canadian nickels (.999) can still be sorted from Canadian coinage even though they have a 12 cent melt value
At present rates Copper pennies will disappear from circulation long before nickels.
(Example: copper pennies are selling for over face now. Nickels are not)
There are many worst case possibilities but if pennies leave circulation BEFORE nickels it might work!
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Silver..poor mans gold
Copper..peasant silver |
Edited by - topeka on 05/11/2008 14:07:18 |
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jorhyne
Penny Pincher Member
174 Posts |
Posted - 05/11/2008 : 14:48:28
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| Do you live in Canada? I was under the impression that commercial sorting in Canada had reduced the percentage of pure NI nickels to a level that made it not worth sorting any more. |
Pennies For Sale: http://tiny.cc/jorhynespennies |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 05/14/2008 : 20:12:45
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quote:
Originally posted by JerrySpringer
Does everyone share my duality of opinion that metal prices could keep going up in the long term or just go bust one day and fleece all the late-to-the-party commodity buyers?
The answer is-Yes.
Yes, metals will keep going up as inflation rages on and yes metals will someday go bust, but the metals bust will only happen when the Fed slams on the brakes and spikes interest rates to get inflation under control. A quick look at interest rates and the price of gold in the year 1980 shows what happens when the former goes up to depress the price of the latter.
Of course, finding someone like Volker to run the Fed and save the dollar and have the country go through the deep hard recession that would follow would be a hard sell to the politicians and the public.
Inflation seems to be the choice of the Fed, Bernake fears a repeat of the great depression and would rather push inflation by dumping cash from helicopers than let the economy slow down. |
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TXTim
Penny Hoarding Member
629 Posts |
Posted - 05/16/2008 : 17:02:53
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At my rate it would take about 42 months to build $10,000 face in pennies at todays 19% copper ratio here. That is steady sorting with a Ryedale. With the copper penny pool diminishing, 5 years is more realistic.
Like JS says - it may be a lot better to refinance or pay down your principal. I guarantee you will really save a lot more cash with $100-$200 extra for 5 years toward your pricipal vs banking on pennies and the copper market.
It's a lot of fun to have a note burning party! |
Beer is my currency. |
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Plan A (help me flesh this out)
Forum Locked
