Copper bullion. Does it make sense?

It may become the thing that people use for barter, since the denominations are not too high. Here's a place that sells copper rounds and bars. I think I would rather get the rounds, because they are an ounce and the value would be easy to figure out. They take up a lot more space than silver, but they might make sense again in the near future. I imagine bartering at the farmer's market with a big copper round for a bunch of carrots or something.

http://www.copperheadbullion.com/

 

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I wouldn't mind investing in some of these rounds, but the premium is just to high compaired to what they are worth in melt. You may be better off saving pre 1982 pennies or going to Home Depot and buying copper piping in my opinion.

 

I agree. They're really cool-looking, and i wouldn't mind collecting some, but like rocky says, the premiums are huge. It'll be a long time before their intrinsic value outpaces your initial investment.

 

I have a little sneaky way if you want to save a few dollars and buy copper at Home Depot or Lowes. I know at my post office they have welcome packets for a new address. They come with a 10% off coupon for Lowes which Home Depot will take as well. I have never used them to buy copper but its a way to save a few bucks.

 

You are right. I would rather buy copper coins than something called bullion that is 5x what copper is selling for. I wonder what will end up being the copper equivalent of the dollar. How much would a dollar weigh? If the price of copper is around $4 a pound, then say an ounce coin could be around 50 cents. I don't even know how copper is weighed. Is it troy ounces?

 

Copper is typically measured in avoirdupois (US) pounds. Currently about $3.63/lb. I'm not sure if the outrageously priced rounds that you see everywhere are typically troy oz (31.1 grams) or if they are avoirdupois oz (28.35 grams) but my guess would be the latter as the former would be mixing measurements and get super confusing.

 

Oh.. and one other thing to consider is collecting modern nickels. They are like 75% copper and 25% nickel. The coins are already worth more in metal value than their face value. As such I think modern nickels are an excellent investment for copper. At worst they are still worth a nickel.

 

the only good way to invest in copper is buying pre 82 pennies (if you can get them considerably below melt) or sorting them yourself, in my opinion.

1 oz copper rounds, or even the half pound and pound bars are always priced at a huge premium.

Nickels are also a reasonable alternative as aldric22 mentioned.

 

Nickels are a good alternative, but you just can't beat instantly doubling the value of your investmet when you can spend .01 on a pre 1982 penny and it is already worth .024 in melt value. May take a long time to invest enough to be worth it and to have the storage space for such a hoard.

 

Call any reclamation center and ask what they will pay for copper cents. I ain't sayin no more!

Chris

 

It's a long term investment obviously, I thought that went without saying.....

Part of it is banking on the melt ban eventually being lifted (extremely likely in my opinion, probably as soon as they discontinue minting the penny the melt ban would be lifted, which shouldn't be long now)

 

You're missing the point! Even if there was no ban, you would only be paid about 25% of the price of Grade A copper. So, if Grade A copper was selling for $4, you would only get $1 for 182 Lincoln cents. If you don't believe me, call a few reclamation centers.

Chris

 

well with that type of quantity I'd have no doubt you are correct. However, if you had $40,000 worth of copper you are telling me they are only going to pay you $10,000? I have a hard time believing that.

 

I find it hard to believe they wouldn't pay at least face value for the pennies. Anyone who would sell them for less than face would be a fool.

 

I didn't say $40,000 worth of copper. I said that 182 Lincoln cents would only be worth $1 because the reclamation center would have to extract the copper. Just to break even, Grade A copper would have to sell for $7.28/lb. if someone wanted to sell Lincoln cents to a reclamation center.

The reclamation centers are in business to make money just like any other business. They can't pay face value, extract the copper and still make a decent profit. Now you know why I keep saying that it is foolish to hoard pre-82 Lincolns.

Chris

 

They also give 10% military discount. Which can be combined with that coupon for 20% off.

 

I like the idea of a large copper coin with value. Like the ones they minted after the French Revolution, or large cents. They had some value and could be used as money. Today's pennies have no real value, and they would be hard to use in trade. Of all the coppe bullion out there, I like the Lakota best. I don't like a modern coin that copies older coins. The Lakota has a new design. Unfortunately it also costs more.

 

Here's a little pic of the Lakota. I think this is a 2 because they have a half ounce round as well, and don't want to assign any US currency amount to them because of what happened to the Liberty dollar folks.

 

I don't see how you are making cents? Pun intended

Say the melt ban is reduced in 10 years and the price of copper doubles during that time period. From current 3.63 a pound, to 7.26 a pound.

The copper value in a penny is currently 2.4 cents, so after the 10 years and doubling you'd have 4.8 cents. Let's say since you have a large quantity of copper the melter pays you 66.6% of spot. (i think this is reasonable for a large quantity transaction.)

So your copper penny gets you 3.2 cents each. Say you sorted a million pennies yourself with one of those coin sorters . (so $10,000 fv)

Your $10,000 face value investment (plus your time and gas getting back and forth from the bank), turned into $32,000 under this realistic scenario.

I'm not saying its a brilliant idea because it does take time, effort and storage space. But it is practically a risk free investment. (other than losing your time and gas if copper never goes up in price or the melt ban is not lifted)

 

I collect pre '82 cents because it just feels good. :yes: