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merc49
Penny Sorter Member
88 Posts |
 Posted - 04/14/2009 : 00:36:16
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new to the forum. Hi.
The first time i heard about sorting copper pennies, was about 3 years ago in wichita kansas. i was in a coin shop and overheard two guys talking about it. One of the guys said he knew someone up north that had melted down 11,000 pounds of them already. i thought that was kinda crazy. anyway i never really got into sorting pennies, but i did start pulling the coppers out of my change every day. over the years i have only saved a gallon jar. Anyways i started to buy some boxes last week to sort for me and my kids to do togeather. Today when i was at one of my banks buying a box a guy followed me out who bought a box right behind me. he asked me how the sorting was going, i told him that i was just getting started and not to worry i wouldnt be much competition for him. He smiled and said he was more concerned about mexico. i asked what he ment and he told me that there was atleast 3 operations south of the border of texas and california that he has heard of where they are melting down thousands of pounds of U.S. copper pennies a day. I told him i wasnt saving them to melt, I was mainly looking for wheats and gonna save a few buckets of coppers. He said he was after wheats as well but that they were melting them down there too. He said that he thinks that within the next 5 years it will be as hard to find a copper penny as it is to find wheats today.
Does that even sound possible to you guys? has anyone ever heared of anything about them melting that much in mexico?
Thanks
Merc49
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Ant
Penny Hoarding Member
USA
894 Posts |
Posted - 04/14/2009 : 01:05:09
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Welcome to the forum, merc49!
If someone wanted to melt down U.S. coins, Mexico would be the place to do it.
1. Cultural history of metalworking/metalsmithing means know-how and facilities are in place;
2. Low overhead;
3. Minimal interference from authorities;
4. Coins are easier to take across the border than weed. 
I haven't looked at the CFR cite re: melting coins, so I don't know if it addresses the coins being melted outside the U.S. I do know there is a restriction on how much coin can be carried outside the U.S. and I seem to recall it is a very small amount. Drawing a blank right now but I'm thinking it's something like $5? $25? |
Lovely dimes, the liveliest coin, the one that really jingles. --Truman Capote
Coins are the metallic footprints of the history of nations. --William H. Woodin |
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Ryedale
Administrator
USA
523 Posts |
Posted - 04/14/2009 : 05:18:42
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merc49,
Great first post and welcome to the forum, we haven't had a thread with so much to chew on in quite a while.
I believe the problem is export, but you have to be caught. I don't know how it is in Mexico, but when you travel to Canada, you are on the highway essentially, cross (in the great lakes area) a river or small lake on a bridge or tunnel, and arrive at the Canadian Customs. So... you are already in the country of destination. The US is who has the export ban, but by the time the car quits rolling you're on foreign soil.
My thoughts are that Mexico is having enough other problems with it's own people, drugs, human trafficing etc, that if somebody arrives on Mexican soil with a trunkload of US currency/coinage they may turn a blind eye, afterall the coins still represent a stronger buying power than their own peso small coins. And afterall its just pennies right, what border gard is going to take 200 lbs of pennies from somebody coming into the country??
This is a very interesting development, but there is still the question of melt feasability, regarding cost to fabricate etc, it only makes cents sense to do this when copper price is higher than 1.50 per lb, and by some margin. That said, when the price was high here say $4 per lb, you had to pay a significant premium for any fabricated copper. I checked Alro Metals when it was between 2 and 3 dollars, and blocks of copper for the plastic injection mold making tools were going for 6.50 per lb. This suggests that no fabricated metals in smaller quantities ever gets close to the "strike" price, or LME (London Metals Exchange) price.
I'd be interested to hear others input on this issue, it's a great story and kindof a lightbulb moment in this hoarding activity.
It's going to take a long time to mine out all the copper, but this sure might shore up the price on things long term.
Again thanks for the great first post and keep them coming. I say hang out at that bank and kidnap that guy till you get more details next time. 
Andy |
Ryedale
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Used with permission from Ironbraid.
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"The real art of conversation is not only to say the right thing at the right place, but to leave unsaid the wrong thing at the most tempting moment."
— Dorothy Neville-Rolfe |
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 04/14/2009 : 06:09:58
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merc49, great post and glad to have you. You bring up some good points.
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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MatLock
Penny Pincher Member
USA
122 Posts |
Posted - 04/14/2009 : 20:36:53
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| Welcome to the forum, merc49. I personally believe that the pennies in their own form are fine and a gas save. This way the purity is known well, unless you are making stuff out of the copper or want it 100 percent pure, I would just keep 'em loose. I have thought about this too, and the border patrol would probably just flash you buy if you look strait. |
Edited by - MatLock on 04/14/2009 20:37:21 |
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TXTim
Penny Hoarding Member
629 Posts |
Posted - 04/14/2009 : 21:17:01
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Welcome merc 49!
Yes, it is true. There are many mexican scrap dealers in Houston that will buy pennies all day for #2 copper prices.
I asked a few what they do with them - all say "Export to Mexico smelters"
Here is the question you have to ask yourself- Would you be comfortable knowing that the pennies you sell to them are going south of the border to be melted?
Or- Does it matter? You are selling pennies at a profit and whatever they want to do with them is their business.
Is there a legal issue here?
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Beer is my currency. |
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merc49
Penny Sorter Member
88 Posts |
Posted - 04/14/2009 : 22:05:02
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Thanks for the warm welcome. If i see that guy at the bank again I will ask him for more info.
P.S. I found a 2nd century AD Greek ionian bronz coin in a penny roll today. it was one that an account holder had cashed in. there was also 2 dimes in the roll.
wish that happened every time. |
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Corsair
Penny Hoarding Member
811 Posts |
Posted - 04/14/2009 : 22:28:57
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quote:
Originally posted by merc49
Thanks for the warm welcome. If i see that guy at the bank again I will ask him for more info.
P.S. I found a 2nd century AD Greek ionian bronz coin in a penny roll today. it was one that an account holder had cashed in. there was also 2 dimes in the roll.
wish that happened every time.
Alright, I think he takes the cake for the oldest thing ever found...ever. |
So long, Realcent 1. Come visit us at Realcent.org! |
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jonflyfish
Penny Hoarding Member
USA
693 Posts |
Posted - 04/15/2009 : 00:03:04
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| A plausible theory considering the yields of border states Arizona, California, Texas (and the south in general) to that of the rust belt. |
Edited by - jonflyfish on 04/15/2009 00:03:39 |
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 04/15/2009 : 06:05:41
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quote:
Originally posted by merc49
Thanks for the warm welcome. If i see that guy at the bank again I will ask him for more info.
P.S. I found a 2nd century AD Greek ionian bronz coin in a penny roll today. it was one that an account holder had cashed in. there was also 2 dimes in the roll.
wish that happened every time.
I wanna see....
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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merc49
Penny Sorter Member
88 Posts |
Posted - 04/16/2009 : 00:05:07
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| Ill try to post a pic thursday night after work. |
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merc49
Penny Sorter Member
88 Posts |
Posted - 04/16/2009 : 22:24:56
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How do you get pictures on the posts????????????
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misteroman
Administrator
USA
2565 Posts |
Posted - 04/16/2009 : 22:31:27
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| I would disagree wih the melting of wheats though even at CU at $4 a lb,apound of wheats goes for $6/lb all day long with no efforts of melting and such.Now if a wheat or three got melted I would agree but no real quantity.If they are smart enough to do this they are smart enough to do other things as a well |
Buying CU cents!!!! Paying 1.2 unlimited amounts wanted. Can pick up if near Ohio area. |
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natsb88
Administrator
USA
1850 Posts |
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Melting in mexico?
Forum Locked
