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 Replies: 36 / Views: 4,660 |
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New Member
United States
10 Posts |
Did you know that Lincoln cents minted all the way up until 1982 are made up of 95% copper 5% zinc? That means currently a 3.11gram Pennie minted before 1982 is actually worth more as a precious metal than its face value. Here is a formula to figure the exact price per Pennie depending on the copper spot price
Using the latest metal prices and the specifications above, these are the numbers required to calculate melt value:
$2.7667 = copper price / pound on May 29, 2015.
.95 = copper %
$1.0130 = zinc price / pound on May 29, 2015.
.05 = zinc %
3.11 = total weight in grams
.00220462262 = pound/gram conversion factor (see note directly below)
The CME uses pounds to price these metals, that means we need to multiply the metal price by .00220462262 to make the conversion to grams.
1. Calculate 95% copper value :
(2.7667 × .00220462262 × 3.11 × .95) = $0.0180208
2. Calculate 5% zinc value :
(1.0130 × .00220462262 × 3.11 × .05) = $0.0003472
3. Add the two together :
$0.0180208 + $0.0003472 = $0.0183680
$0.0183680 is the melt value for the 1909-1982 copper cent on May 29, 2015.
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Moderator
 United States
56855 Posts |
No real value in saving these for the melt value,IMHO. John1  |
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Moderator
Australia
16845 Posts |
Unfortunately, there is a logic error in all such calculations as this. You do not obtain the "melt value" of a piece of metallic alloy by calculating the melt values for the individual components of that alloy, then adding the values for the components together.
Most people interested in buying either copper or zinc for industrial or other practical purposes do not want them already mixed together. They want then separated, or perhaps mixed together in some ratio other than the 95:5 you find inside a cent. Unfortunately, we do not yet have the technology to wave a magic wand over a piece of alloyed metal and hey-presto separate the components out into two neat little piles of pure metal at no cost and with no material losses. I seriously doubt we ever will obtain such technology, given that it kind of violates the Second Law of Thermodynamics. In practice, only the major component of the alloy is recoverable, or one of the minor components if that minor component is significantly more valuable. Everything else in the coin is thrown away, ending up as toxic waste.
So, in practice, the value of an alloy is the value of its principal component, minus the cost of separating out that component from the other unwanted junk in the alloy. In the case of a bronze cent, the principal component is copper, and trying to recover that 5% zinc is never going to be economically viable - so the "scrap metal value" of a cent is actually 1.802 cents, minus about 0.5 cents refining cost.
That does still give you about 1.3 cents per cent - assuming, of course, you can find a smelter who's prepared to break Federal Law and smelt them for you.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Moderator
Australia
16845 Posts |
Oh, and I hate to be the one to point it out to you, with your username already selected and all, but you do realise that the singular form of "pennies" is "penny", right? With a "Y"?
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Rest in Peace
United States
18456 Posts |
I'm with John. I was saving them for years, then decided I was getting no where's fast when copper went down to 2.55 a pound. so I dumped them back into circulation and bought myself some nice unc. FSB Mercury dimes with the cashed in money. |
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New Member
 United States
10 Posts |
Good point sap. and yes I'm aware of the spelling thank you. I chose this spelling because of the available domain name of my blog *** Edited by Staff - Please review the rules that you agreed to when you registered. *** |
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Pillar of the Community
United States
1748 Posts |
Unless it's an older Canadian or LWC, I just drop them in the charity boxes. I really wish we would get rid of them. |
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Pillar of the Community
United States
7390 Posts |
Did anyone catch a pawn stars episode a while back where the old man was storing buckets & buckets of copper cents because the copper value was more than face? Seems ridiculous. But when coppers at say $10+/lb I wonder if the rush to scrap will be there.
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Pillar of the Community
United States
2049 Posts |
There's little downside to holding on to 95% copper cents. At worst, they are still worth face value. The toughest thing is the weight and volume to store these. I cashed in a few hundred dollars worth about 5 years ago because the space and weight was too much.
Since you can still obtain these fairly easily at face value, there's not a huge premium on them. At some time down the road (may be many years), the intrinsic value may make it worthwhile to cash in. I have a small amount (around $100 worth) and no longer aggressively trying to build a stash of these.
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Bedrock of the Community
United States
20753 Posts |
One really big problem with the value of Copper Cents, or Pennies. Just where do you sell them? I have neighbors that dump large amounts of those in with just metal when taking to a metal recycling place. They don't get anywhere what you think for those. So just where would you try to sell them for anything. At coin shows many dealers try selling them in bags of 100 for $2 or $3 but usually they just sit there. As with any coins so called MELT value, just where do you get that money.
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Pillar of the Community
United States
8517 Posts |
Should be cent jar......it's a cent.
Oregon coin geek.....*** GO BEAVS ! ! ! ***
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Bedrock of the Community
United States
17884 Posts |
Quote:
$0.0183680 is the melt value for the 1909-1982 copper cent on May 29, 2015. And several years ago when copper was higher they were theoretically worth almost 4 cents each. So investing in the melt value would have resulted in a loss in value. Now sure if copper was to go up to five or six dollars a pound or more it might be worthwhile. But do have any inside information as to why copper would more then triple in the near term? And as mentioned currently it is illegal to melt them down which also puts a damper on the idea of hoarding them. Quote:
There's little downside to holding on to 95% copper cents. At worst, they are still worth face value. With a purchasing power that declines at about 3% per year. Hold them for three years and you have in real terms lost 10%. |
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Pillar of the Community
United States
1512 Posts |
Quote:
With a purchasing power that declines at about 3% per year. Hold them for three years and you have in real terms lost 10%. DING DING DING DING DING! We have a WINNER! Inflation is the "real" reason not to hoard cents. |
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Pillar of the Community
United States
8517 Posts |
Hoarder gonna hoard....no cure for that. Anybody need five gallons worth ?  Oregon coin geek.....*** GO BEAVS ! ! ! ***
Edited by 52Raymo
05/29/2015 12:20 pm
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Pillar of the Community
United States
513 Posts |
yeah, well, what else are ya gonna do with those empty five gallon buckets hanging around anyway?
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Pillar of the Community
United States
8517 Posts |
It's hard not to save the coppers when you're going through box after box looking for goodies.
Oregon coin geek.....*** GO BEAVS ! ! ! ***
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Replies: 36 / Views: 4,660 |
Posted 05/29/2015 07:37 am
