Hoarding copper pennies

Discussion in 'Coin Chat' started by manic_mechanic, Feb 5, 2010.

  1. Pocket Change

    Pocket Change Coin Collector

    Let bhp3rd give his opinions. The ones he gives are a hell of a lot more interesting than a lot of the drivel I see on this site (my own contributions included).

    For purposes of full disclosure, I have about $50 face in pre-1982 pennies (CENTS). Like others, I do it for the amusement - it doesn't take up much space but they sure weigh a lot! And if we get lucky and the melting ban is lifted and copper prices go up, I can probably order a couple of FAMILY sized pizzas with DOUBLE cheese for me, the missus and the little ones. :)
     
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  3. mark_h

    mark_h Somewhere over the rainbow

    Yep - all in how you read it. Just summerize it as - "Don't do it, waste of time". See - all in how you interpret it. :)

    PS - Most of us this is a hobby and not a living. Something we enjoy. And copper is one of the things a lot of us like. And we still give them a thought(for varieties) - then toss them back into circulation. :)
     
  4. Gipper1985

    Gipper1985 Junior Member

  5. Gipper1985

    Gipper1985 Junior Member

    You are right ofcoarse, I was just temporarily offended, kind of silly now that I think about it.
     
  6. Conder101

    Conder101 Numismatist

    From an unknown collector circa 1967 (fictional of course)

    In 1967 silver was under $2 an oz, silver dimes would melt at 12 to 13 cents apiece, and the melting of silver coins was illegal.

    The same arguments used against the hoarding of copper cents today would have made the same logical sense in 1967 applied to hoarding silver. Within six years melting of silver was legal, dimes would melt at 3X face. Within twelve years silver hit $50 an oz and silver dimes were selling for $2.50 apiece. Definitely within a lifetime. Of course that was a fluke price but today, still probably within the lifetime of our fictional dime collector, silver is 7X to 10X what it was in 67. I can't guarantee that copper will do something similar, but it wasn't that long ago that it was over $4 a pound and copper cents were worth between three and four cents apiece (3X face, the same as silver coins were in 1972). I could very easily see copper over $7 a pound in my lifetime. Sure melting of cents is illegal now, but I don't see that lasting forever either, and I think once most of the copper cents are gone from circulation the melting ban will be repealed. But if you wait until the ban is repealed to start hoarding, there will be nothing to hoard. And the more hoarding done the sooned the copper will disappear from circulation and the sooner the repeal will come.
     
  7. orenthal

    orenthal Junior Member

    "From an unknown collector circa 1967 (fictional of course)"

    i like that comparison.
     
  8. bahabully

    bahabully Junior Member

    I have to agree with this..... hoarding any common thing always appears silly,,, that is until it becomes uncommon, then it becomes insightful. The amount of money thrown/given away recently ('trillions') will sooner or later impart inflation into the game,,, then watch what copper does.... $7 per lb. may too low...
     
  9. Cringely

    Cringely Active Member

    Originally Posted by Conder101
    From an unknown collector circa 1967 (fictional of course)

    In 1967 silver was under $2 an oz, silver dimes would melt at 12 to 13 cents apiece, and the melting of silver coins was illegal.

    The same arguments used against the hoarding of copper cents today would have made the same logical sense in 1967 applied to hoarding silver. Within six years melting of silver was legal, dimes would melt at 3X face. Within twelve years silver hit $50 an oz and silver dimes were selling for $2.50 apiece.


    The reason why silver hit $50/oz in 1980 was that the Hunt brothers tried to corner the market and artificially drove up the prices. As soon as the Hunt brother's bubble burst, the price of silver dropped like a rock.

    Copper isn't a precious metal. It is a relatively abundant element. If there is a rise (or fall) in copper prices, I would think it would track most other non-PM commodities
     
  10. bahabully

    bahabully Junior Member

    Why silver hit 50 is unrelated to the point... the point is that silver was @2 when freely circulating and is now at 12-18, so if you hoarded it back in the 60's you may have looked silly,, now my guess is that anyone of us would glady accept a couple hundred pounds of it from a silly uncle who hoarded it back in the 60's......
    Agree copper is not a precious metal (pm) and likely trends with non-pm commodities,,, I bet Pm's trend with non-pm commodites also...
    pm's and non-pm will tend with inflation and with petrol and with labor rates.... anyone wanna guess where those prices will go in our lifetime ?
    ... again, $7 per lb will likely seem like a great "cheap" price in the near future..... let the market digest a few more Trillion dollar baking bailouts and see what happens....
     
  11. bahabully

    bahabully Junior Member

    btw.. the new site layout is kool... kudos.
     
  12. Luke1988

    Luke1988 New Member


    I think you are comparing Apples to Oranges here, Silver like gold has a intrinsic
    monetary value that is used to store wealth and is not a pure industrial metal, If tomorrow they found a way to make iron have all of the industrial propertys as gold, gold would still be worth alot but if tomorrow they found a way to make iron have all of the industrial property as copper, copper would sink like a rock.





     
  13. bahabully

    bahabully Junior Member

    Silver and gold have no more intrinsic monitary value than our current fiat paper.... it's actual monitary value, like the paper, is only an illusion, and absolutely dependent upon others belief that it has some value.... once that illusion is debased and golds skirt is lifted, then it's value would plummet like sandstone....
    Gold does have some industrial application that generates real demand and value, as well the 'oooh it's pretty' factor, but industrial use is minimal, and ooooh it's pretty is subject to public whim and disposable income level...
    Silver has more application in industry and photography and more limited ooooh it's pretty to wear factor...
    Copper on the other hand, retains the highest degree of monitary worth of the three imo... it's high industrial demand provides something "more concrete" in it's price support than either silver or gold......
    You tell me which is more likely:
    1 - a discovery with enables iron to be turned into copper... haha.
    2 - demand for black and white photo's decreases.
    3 - walmart decides to only accept payment in .9999 fine gold dust.
     
  14. dctjr80

    dctjr80 Senior Member

    The nay sayers can deny it till their faces are blue, but facts are still facts, and the fact is that currently pre-1982 cents have greater base metal value than purchasing power.

    Nickels have already achieved greater base metal value as well.
     
  15. cerdsalicious

    cerdsalicious BigShot

    It's not illegal to melt them if they're no longer pennies!!!
     
  16. Cringely

    Cringely Active Member

    Unfortunately, until the metal content of the base metal greatly exceeds its face value, its liquidity is extremely small.
     
  17. Prospector

    Prospector Member

    You could also hoard them and store in 55 gallon drums so when the utility company gets under your skin you can
    load them in a dump truck and take them to their office to use to pay your monthly bill like some guy did years ago.

    He even made the front page!
     
  18. medoraman

    medoraman Supporter! Supporter

    I don't think its a terrible idea to hoard these cents. Yes, there is a law on the books right now making it illegal to melt them, but that law would be overturned if challenged. Just because its a law does not make it lawful. In past cases courts have ruled that coinage is personal property to be used as wished as long as it is not to deceive someone else. Melting would be "used as wished". This is why it is not illegal to deface, create elongated coins, etc. As long as you are not altering a coin to defraud someone else, you may you it as your personal property however you may wish.

    I have a few bags of wheat cents, but I haven't went through the effort of sorting out copper cents. If I were in a position where many ran through my hands daily, I probably would build a machine to sort them and hoard them.
     
  19. acepharmer

    acepharmer Junior Member

    I started hoarding pre '82 cents several years ago because my kids and I enjoy making and collecting elongated pennies as souvenirs, especially from Disney World. The copper cents make better looking elongated coins than the new zinc cents.
     
  20. dwhiz

    dwhiz Collector Supporter

    I keep all the copper cents I find just for the heck of it!!!
     
  21. ddoomm1

    ddoomm1 keep on running

    why not....I usuallly buy $5 penny rolls from the bank once a month or so and sort throught them..last time got 2 rolls (+ some extra) copper and 2 wheeties 1 1937-P
     
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