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 Replies: 39 / Views: 4,929 |
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Valued Member
United States
52 Posts |
Not a quarter but 2.5 cents or .025: people invest in copper pennies as a copper bullion investment. Copper is down right now because we're in a bear market and many people think the price of copper will skyrocket. A lot of the research I see out there shows that either commodity prices will rise, the Euro will fail causing mass commodity price increases, quantitative easing will devalue the dollar increasing commodity prices, or the penny has not long to live driving up the value of the pennies as bullion and numismatic value.
Either way, copper pennies are an obvious choice to keep if you already look through pennies and a worthwhile thing to consider buying at a premium if financial prudent for you to do so.
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Valued Member
 United States
477 Posts |
I'm going to cash out in penny, I'm not going to sort the penny boxes or even open, I'll only open them if I need the money and keep as many pennies as possible. In 60 years Ill have several coins that are over 100 years old and will be able to cash out lots of money for me idk
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Valued Member
United States
477 Posts |
my question is to you guys is if there have been any coins that are over a century old that are worthless to collectors and not worth more than their face value?
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Pillar of the Community
Australia
4411 Posts |
That is not the question you should be asking. It should be have there been any old coins that have risen in price less than they would have if sitting in a bank account. My guess would be yes.
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Valued Member
United States
52 Posts |
It's about two factors:
Supply and demand.
Market exposure.
There is always someone that wants to buy something, regardless of what it is. The less supply there is, the better your price. Most old coins are more desirable as times progresses which increases demand. However, as stated, nothing is guaranteed.
So then it comes down to market exposure. When time to sell, can you reach the largest population possible to offer your item for sale increasing your chance to reach more people "in demand" of such item.
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Valued Member
United States
477 Posts |
So then why do people hoard copper pennies? Like I've already asked this question but I've come to the realization from your posts that maybe it might be better to put it in the bank.
Lets say in 1975 you put 25 dollars in the bank and withdrew in 2000
you would be withdrawing roughly 129.00 dollars
the value of a copper penny 0.0217935 or roughly 50+ dollars for a 25 dollar box worth.
I think it may be better to put copper pennies in the bank.
Copper pennies can be worth only so much, due to the fact that copper is a heavily used industrial metal. Saving copper pennies in the hopes that copper will shout up to 10.00 a pound is kind of silly as it's probably not going to happen. Even if it did there's a limit as to how much copper will go up to in the sense that there has to be some kind of stable market for it as it's not a precious metal.
You can however earn interest forever without a cap for as long as you have your money in the bank. My guess is that leaving 25.00 in the bank of copper pennies would accumulate more interest in several years than there copper value and then would accumulate more profit than the copper value for ever afterwards.
I get that copper pennies are now a thing of the past (although zinc pennies will soon be as well) and that they are worth more than their face value and it's getting some media attention. People may melt the coins (like silver coins) making the coins rare and scarce. Investing in copper coins in the sense that one day they will be worth a lot more than their copper value to collectors because they are scarce is some what logical. I however don't see why people are hoarding thousands of dollars in copper coins for their copper content and not their potential value due to their scarcity after the melting band is lifted and people begun to melt them.
Edited by greenprint
06/09/2012 6:23 pm
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Valued Member
United States
52 Posts |
As you just pointed out, if you can have $25 of copper pennies and it equals $50, that's a 100% gain based on today's price, not years from now hoping for a copper per pound price increase. Even if it cost you say $40 to buy it, you still have an immediate net unrealized gain of $10. Copper usually is down in a bear market so most people speculate it'll rise. How much it rises isn't the point. It's an unrealized gain. Your money in the bank is an unrealized gain until the interest is accumulated. Given the fact interest rates at banks are paying less than inflation... you have a net unrealized loss, not a gain, by keeping money in a bank.
The only real difference is immediate access to your full investment. A penny is always worth a penny so you can cash in, but if you paid more than face, there's a potential loss. Still... better than the potential loss of the stock market (ie: look at facebook stock right now).
Does that explanation help?
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Valued Member
United States
477 Posts |
I also do think that your right and that it makes more sense to put your money in the bank regardless and that perhaps you would make profit putting coin in the bank than hoarding coins as 100 years from now the coin would be worth more to collectors than the face value, but like you said there's the chance that you would make more money off interest on that coin.
I think however you get to the point (maybe not after 100 years) were the coin becomes worth more than the interest. Like if you had a bunch of 400 year old coins sitting around those would mostly likely be worth more than the interest. But that would be an investment not for you but for someone else as you wouldn't benefit from it. By the time I die I will have several coins that are over 100 years old but none that are any where near 400 from u.s. currency (lol I don't think the currency has even been around that long but you get the point) I think you get to the point were the coin does indeed come worth more than the interest it's just a matter of how long.
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Valued Member
United States
52 Posts |
I don't understand this concept of numismatic value only talk. A coin holds two values. Numismatic value and the actual metal value. Given the vast talks of "currency wars" and inflationary practices of fiat currencies, to state that a coin valued at a currency level of one cent won't have a huge advantage in metal value in 100 years is almost impossible to argue UNLESS the statement is the metal will have no use in society what-so-over at that point in time. I suppose, that is possible. But why would you wait 100 years to cash in? I mean the point is to cash in at peak values, not set exact time values.
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Replies: 39 / Views: 4,929 |
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Posted 06/04/2012 7:51 pm
