Copper Pennies Worth Over Double Face Value!!!

Yesterday in ATS chat there was a short discussion about where money is headed, and various models were discussed. Of course the idea of backing currency with precious metals came up, and I realized that copper has long been making steady gains in value, it's more abundant than gold and silver and it's current value is closer to the dollar than silver or gold. So of course I wondered about backing the USD with something like copper..

But this thread isn't about that.

After having this thought I checked the melt value of copper and saw that currently, it's about $3.46/lb.

Lincoln Cents, minted from 1909-1982, are made from 95% copper and 5% zinc. A Lincoln penny weighs 3.11 grams. There are 453.59237 grams in one pound.

453.59237 / 3.11 = 145.84963
145.84963 * .05 = 7.29248 (To account for pennies being only 95% copper)
145.84963 + 7.29248 = 153.14

So $1.53 in copper pennies has a real world value of $3.46, well over 100% of it's face value.


Of course I wondered if this is legal, and sadly it's not since 2008. There are also some pretty stiff penalties, including up to 5 years in federal prison and a $10,000 fine. So I definitely don't recommend melting them.

After figuring this out I started looking on the internet, and of course many others realized this long ago. Some are speculating that eventually as copper demand gets REALLY high this ban will be lifted. Or of course if the US economy dies and the currency is severely devalued or even replaced.

I definitely think it's worth going through your change and holding on to copper pennies. You're saving $.01 at a time so it's not going to make you late on your laser hair removal payment, and you are eventually going to get well over a 100% return. =]

People who did this with silver when it was no longer used in 1965 are very happy they did so today. There is a HUGE market for old US Mint silver coins.. Could copper perform similarly?


The Penny is outperforming Facebook!

I wonder though. If you took a huge chunck of copper to a scrap yard, how would they know it used to be pennies unless you told them. I have lots of those pennies, and I am also still finding pre 1965 quarters and dimes in circulation. I have a fair amount of those as well now.

Originally posted by TinkerHaus

Of course I wondered if this is legal, and sadly it's not since 2008. There are also some pretty stiff penalties, including up to 5 years in federal prison and a $10,000 fine. So I definitely don't recommend melting them.

edit on 24-5-2012 by TinkerHaus because: (no reason given)

But if you've earned your money, isn't it up to you what you do with it? You can burn it, rip it or even melt it!

Well that's my two pennies worth

reply to post by usmc0311


That is true.. I just don't want to advocate breaking any laws. Ultimately people are responsible for themselves, though.

I also find silver in circulation and have made a habit of buying rolls of coins from banks often. After you know what a silver coin looks and feels like you can sort through a few hundred dollars of change pretty quickly. If you're ever passing through a small town stop at the local bank or CU - they tend to have older rolls and more silver in my experience.

I found 2 silver Roosevelt Dimes yesterday, searched 10 plastic wrapped rolls and only had to unwrap two of them. Dimes definitely are easier to find silver than quarters, 50 cent pieces or Ike Dollars.

Canada recently changed to of their coins to be made of cheaper and less metals. They look strange, but not worries about making this same blunder....

(You know, making money that is worth something...)

he new one-dollar and two-dollar coins are manufactured at the Mint's facility in Winnipeg, Manitoba using the same patented multi-ply plated steel (MPPS) technology from which Canada's lower denomination circulation coins have been made since 2001. This proven technology, by which a steel core is plated with alternating layers of different metals such as copper, nickel and brass, employs far less metals than alloy coins and produces highly cost-effective circulation coins.

Link

How can they make it illegal? It's your money! How are they gonna know where the copper came from if it's melted anyway? I'd personally just do it and not worry about some idiotic law.

I heard about the pennies and the copper content from 1982 and earlier, so I went through a big old jar of pennies that we had been collecting for years, and found quite a few old pennies that I separated out. I was amazed at how old some of them were (the earliest one was from 1920). I understand there is a law that states that a person cannot melt them down, but if they ever decide to stop minting pennies (as Canada has done), it will no longer be illegal.

The melting point of copper is, coincidentally, 1982 degrees Fahrenheit. I don't think my oven goes that high.

100% return huh?

that and the story of things that sound too good to be true.

Originally posted by FissionSurplus


The melting point of copper is, coincidentally, 1982 degrees Fahrenheit. I don't think my oven goes that high.

A crucible and a tiger torch with a simple kiln oven will easily that temp.

Originally posted by 0mage
100% return huh?

that and the story of things that sound too good to be true.

Check out the OP to confirm this. Not only is the melting value of copper currently worth more than double the face value of the coin, there are no trade fees associated, and you will always get the coin at face value as long as you are willing to do a little sorting.

If you sold 1lb (153 pennies) of copper scrap to a recycling yard that is local to me today, you would get $3.11.

And again, over time the price of copper is only going to rise.

If you had $1000 in copper pennies by face value you would get over $2000 for metal scrap. You can verify the price of copper and do the math for yourself...

ETA: I should have mentioned that the entire reason they made melting currency coins illegal in 2008 is because in 2006 the price of copper doubled and made the weight of a copper penny more valuable than the face value of the coin. Just goes to show you how great a fiat money system that is born out of debt is. Our money has depreciated to a point where it's not worth the metal it's minted on.

I posted on this awhile back - the thread gives you a site for real-time melt values of all US Coins.

www.abovetopsecret.com...

Originally posted by BABYBULL24
I posted on this awhile back - the thread gives you a site for real-time melt values of all US Coins.

www.abovetopsecret.com...

Ah, sorry I didn't see it. Great thread though.

It looks like MichiganSwampBuck posted one even earlier here: www.abovetopsecret.com...

If the mods don't mind I hope these can occasionally be brought up again - as you said in your thread it's a 100% risk free investment and doesn't take too much time do casually do. One day you'll be happy you did. =]


Off topic: I've been collecting silver and pulling it out of regular change since I was a kid, over 20 years now.. I just never thought to even check the price of copper until last night. Glad I did.

Originally posted by TinkerHaus

Originally posted by BABYBULL24
I posted on this awhile back - the thread gives you a site for real-time melt values of all US Coins.

www.abovetopsecret.com...

Ah, sorry I didn't see it. Great thread though.

It looks like another MichiganSwampBuck posted one even earlier here: www.abovetopsecret.com...

If the mods don't mind I hope these can occasionally be brought up again - as you said in your thread it's a 100% risk free investment and doesn't take too much time do casually do. One day you'll be happy you did. =]


Off topic: I've been collecting silver and pulling it out of regular change since I was a kid, over 20 years now.. I just never thought to even check the price of copper until last night. Glad I did.

edit on 24-5-2012 by TinkerHaus because: (no reason given)

NP - yup & dont forget about the nickels they are down now but are 75% copper - i pull those as well.

Good site here -

www.coinflation.com...

reply to post by TinkerHaus

So $1.53 in copper pennies has a real world value of $3.46, well over 100% of it's face value.

So, you'd have to have 153 pennies to make a profit of $1.93? That seems like an awful lot of work for such a small yield.

Granted, scale this up, and now you're talking some bucks, but who's going to find so many pennies that fit the bill (and as you mentioned, it's illegal).

If the US economy tanks, we will ALL (and that means the world folks) would have much bigger fish to fry. When the world's largest economy goes kaput, the rest also goes in the toilet. Why do you think China has done so much to keep us going? We're their biggest customer. Without us, they've got a ton of goods with no market.

Copper theft is always on the rise. It's used in old wiring and plumbing, and old communications lines. People strip it all the time and sell it. Still though, it seems for most uses, some other material will fit the bill.

Originally posted by Gazrok
reply to post by TinkerHaus

 

So $1.53 in copper pennies has a real world value of $3.46, well over 100% of it's face value.

So, you'd have to have 153 pennies to make a profit of $1.93? That seems like an awful lot of work for such a small yield.

Granted, scale this up, and now you're talking some bucks, but who's going to find so many pennies that fit the bill (and as you mentioned, it's illegal).

If the US economy tanks, we will ALL (and that means the world folks) would have much bigger fish to fry. When the world's largest economy goes kaput, the rest also goes in the toilet. Why do you think China has done so much to keep us going? We're their biggest customer. Without us, they've got a ton of goods with no market.

Copper theft is always on the rise. It's used in old wiring and plumbing, and old communications lines. People strip it all the time and sell it. Still though, it seems for most uses, some other material will fit the bill.

edit on 24-5-2012 by Gazrok because: (no reason given)

"If Laws Change, 'Penny Hoarders' Could Cash in on Thousands of Dollars"

abcnews.go.com...

Originally posted by Gazrok
reply to post by TinkerHaus

 

So $1.53 in copper pennies has a real world value of $3.46, well over 100% of it's face value.

So, you'd have to have 153 pennies to make a profit of $1.93? That seems like an awful lot of work for such a small yield.

Granted, scale this up, and now you're talking some bucks, but who's going to find so many pennies that fit the bill (and as you mentioned, it's illegal).

If the US economy tanks, we will ALL (and that means the world folks) would have much bigger fish to fry. When the world's largest economy goes kaput, the rest also goes in the toilet. Why do you think China has done so much to keep us going? We're their biggest customer. Without us, they've got a ton of goods with no market.

Copper theft is always on the rise. It's used in old wiring and plumbing, and old communications lines. People strip it all the time and sell it. Still though, it seems for most uses, some other material will fit the bill.

edit on 24-5-2012 by Gazrok because: (no reason given)

I'm just giving that as an example of what you would make today, if it were legal. And again, 100% is a GREAT return.. Unheard of with most regular investments.

If and when copper takes off like silver has, your pennies could be worth $2 or $3 each.. Might be 30 years from now, but still. =]

If the US economy tanks, people are going to look for another currency.. In some states using gold and silver based on it's weight value is already legal (like mine). People will still trade goods and services, but they'll look to do so with a currency that has always had value.

There already appears to be a market of people who will buy your copper pennies based on their weight. I have no idea what they would do with them and I don't care.. It's not illegal to sell collector's items.