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 Replies: 23 / Views: 2,783 |
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Valued Member
United States
270 Posts |
There is an article in this week's Numismatic News by Russ Rulau about how he is currently hoarding nickels since the intrinsic value of the metals is worth more than the face value of the coin, coupled with the fact that it costs the mint over 11 cents to mint a nickel now. He thinks that perhaps the 2006 Jefferson nickel with the front facing portrait may turn into a single year issue with the nickel perhaps being discontinued in 2007. He's not necessarily betting on it with a new Congress, but feels strongly that both the nickel and the cent are definitely on their way out, at least with their current metallic composition. Shortly before that article came out I went through my hefty piggy bank and sorted the 95% copper cents from the zinc cents -- 5,500 coins worth altogether. I kept the $10 worth of copper cents and sent the zinc cents through a CoinStar machine which were counted without a fee for a gift card at a coffeeshop chain. In addition to that I have some rolls of nickels that I picked up from banks over the last year or two, including the 2006 Jeffersons and the 2005 Buffalo reverses. What do people here think of hoarding these small denomination coins? Will any significant increases in value be realized within a relatively short period of time. And if not interested in the issue of hoarding, what do you think of the fate of the cent and nickel? |
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Pillar of the Community
Australia
9379 Posts |
If U.S. follows the trends in other countries, it probably won't be long before they do away with the One Cent (I would think not before 2009 though, that would be 100 years of Lincoln cents). Five cents may follow the same fate or maybe they will change to a cheaper metal. Steve  |
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Valued Member
United States
80 Posts |
It is now illegal to melt down small change or ship large quantities overseas . I Hoard gold and anything made of it. Year over year growth, I believe will win out over other base metals IMHO. China is sucking up all these coins for melting world wide. It will make for interesting collecting as the supplies shrink. Circulated grades could become very rare.
Edited by DaBoz
12/29/2006 06:19 am
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Valued Member
United States
287 Posts |
The wheat pennies were discounted years ago and people hoarded these (one of my friends has 37,000 of them) and their value has not increased much at all. I would not think that the nickel would be any different.
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Pillar of the Community
United States
2540 Posts |
It could be many years before the restrictions on melting are lifted, during that time you would do better to have the money in your bank account, earning interest.
I hoard Barbers (dimes, quarters and half dollars).
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Valued Member
 United States
270 Posts |
Yes, seems like one would be waiting a long time for any increased value to accrue.
Maybe it's more a case of being an exciting time of change in terms of our coinage, and that it is not completely easy to let go.
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Pillar Of The Community
3147 Posts |
I am surprised our government (US) didn't do what the Canadian government did. They quietly ordered their banking institutions to pull the old coins out of circulation and they then made the profits off of remelting and selling? Guess the Mint never thought of that?
Personally I don't think you will EVER in this lifetime see the cent or the nickel disappear from circulation. They may change composition to mud and straw but never withdraw or cease to create. To much politics involved!
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Pillar of the Community
United States
5362 Posts |
I recall the same discussions about silver in 1964. The reasons for not saving the coins were the same - too many - illegal to melt - etc. President Johnson even guaranteed that silver coins would remain in circulation for years. But while he was saying that the government was itself removing the silver coins form circulation.
Here are a few other facts to consider. The zinc and copper pennies are different weights - they can be sorted out very easily by counting machines. So it would be easy for Brinks to sort out copper on a massive scale.
The law prohibiting melting cents and nickels has an EXEMPTION for people granted a license for that purpose. So the government can pick from its friends certain individuals who will do the melting. Their exorbitant salaries will be deducted from the proceeds before the "profit" is returned to the Treasury.
Free market metal prices fluctuate but since there are fewer than 150 pennies in a pound - copper at $3 is a level at which terrific profits are possible. Copper pennies use zinc as an alloy metal smelting pure copper from pennies is a sinch. Costs are minimal.
Nickels are something totally different. The alloy of the US 5 cent piece is copper and smelting to seperate the two metals is expensive.
So my take is that for right now copper cents are worth saving - not as coins but as metal. A 200% rate of return in 5 years is better than bank interest and that is just what happened with silver in 1965.
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Valued Member
United States
393 Posts |
I've been saving copper pennies for a little while now. I've noticed they're becoming less common. Is this because they're being hoarded or because they're getting old and vanishing due to natural loss? As for the nickel, I'm sure that after the mentioned magazine article more people will start hoarding them. More people hoarding will mean more required from the mint. At .11 cents each that will not continue indefinately. I think it's going to get interesting within the next few years. For all practical purposes the cent and the nickel are worthless in purchasing power. According to measurngworth.com it takes about .25 cents to purchase what .01 cent would purchase 150 years ago.
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Valued Member
United States
208 Posts |
What year did the mint stop making the 95% copper pennies?
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Valued Member
United States
393 Posts |
1982. Both copper and zinc cents were made in 1982 though.
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Valued Member
United States
414 Posts |
I really don't know how much money a person can make for hoarding copper pennies. Said the copper content becames 5 cent per penny (a long shot) and when he wants to sell them, the dealer needs to make some money as well as downstream melters and refiners, etc. I believe, the most money the hoarder can make is 2 to 3 cent per penny. To make 1000 dollar, he needs to hoard 50,000 penny and wait. The bottom line, it is not worthy!  |
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Pillar of the Community
United States
5362 Posts |
Hi Monster - in your example you can make 2 cents per penny. In my book that is a 200% increase in your money. If you put one cent in a bank how long will it take to even DOUBLE?
I save pennies and right now have several hundred rolls of copper. I have 500 or so rolls of wheaties that I don't count. But as copper prices rise so will those.
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Valued Member
United States
208 Posts |
On a serious note I am hoarding all gold and silver coins I can get my hands on.
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Valued Member
United States
414 Posts |
200% profit is really great. But the effert you need to put in is more than 2 cents. I world rather focus my effert to something else, said 20% profit but 200 dollar. Just a thought.
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Pillar of the Community
United States
560 Posts |
I'm hoarding gold, silver, copper, and aluminum...aluminum cans. The last time I checked, each can was worth more than Two Cents apiece which makes them more lucrative and easier to reap your profits than copper cents. I know storage is problematic for most people but I live in a warehouse and have six 40ft. shipping containers. It seems as though all metals keep going up more and more in large part because of the Chinese. I'm fixing to marry a girl who is coming from China. Every product I buy comes from there; so, why not my wife too. Guess where I'm heading when China dumps trillions of our dollars and our economy sinks into a major depression. |
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Replies: 23 / Views: 2,783 |
Posted 12/29/2006 06:17 am
