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  #1  
Old 07-22-2007, 05:51 PM
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2ndAmendmentguy 2ndAmendmentguy is offline
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Lightbulb Collecting Pre-82 Pennies and Nickels

I have seen plenty of people laughing at others collecting the pre-82 pennies and nickels. Why is this? It is an easy, instant profit due to the rise in price of base metal prices.

People saying that it would take tons of pennies to make a profit and this is just not so. Say that in X number of years, copper gets to where a roll of pre-82 pennies is worth 10x face, or $5.00. You could easily go to the goofs on eBay and sell them for a $4.50 profit on each roll, plus you can gouge on shipping as well.

Or how about nickels getting to 10x face. You could sell a $2.00 roll of nickels for $20.00.

Is anyone else out there hoarding these marvelous coins, or am I one of the few sensible people trying to make a buck off of a government who has been bending us all over and taking it at will. I don't know about any of you, but good ol' Uncle Sam hasn't even given me a reach-around! Any time I can even get close to reaching in the governments pockets you can count me in.

"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants"..... I say, lets start with Bush!
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Old 07-22-2007, 10:26 PM
Tecumseh Tecumseh is offline
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Quote:
CHUCK JAFFE
Stupid Investment of the Week
A thought for your pennies: they aren't worth hoarding

http://tinyurl.com/2k3pkk
I literally read your post and then went to bigcharts and this article popped up - I haven't even read it yet - just thought it was a strange coincidence.

Last edited by Cajus : 07-23-2007 at 05:11 PM. Reason: Copyright rule
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  #3  
Old 07-22-2007, 10:55 PM
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For now I'm sticking to pre-1982 Canadian nickels, then again I do live in Canada!

Each one is 4.54 grams, or 1/100 of a pound of nickel. Right now I have a little over 4 pounds of nickel sitting in a shoebox...
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Old 07-23-2007, 05:06 PM
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2ndAmendmentguy 2ndAmendmentguy is offline
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Default About The Article

I read the guys article you posted above, and he makes good points if you are trying to get the return right away. I am doing this for the long-haul.

Quote:
There are several problems with buying pennies for their melt value. For starters, if you buy them by the bag, you'll pay dealer prices, which will inflate your buying price and cut your ultimate selling price. A 50-cent roll of 1981 pennies sells for about $1 today, so you'll spend about $3 to get a pound's worth of copper, which basically eliminates most of the margin that's attracting investors to pennies in the first place.
And if you're buying uncirculated bags of pennies -- as DiGeorgia and others suggest -- you're paying an additional premium to get a collectible, even though your investment premise is the play on metals.
Then there's the problem of storing all of those pennies. A $50 bag of pennies weighs a bit more than 30 pounds. So a $10,000 investment in pennies -- even if it buys just $5,000 worth of coins -- weighs north of 1.5 tons
First off, who would be stupid enough to buy pennies at a premium. This guy is a total ass. Those of us with a brain and a little time buy rolls of pennies and pick out the pre-1982 ones. It costs nothing more than time and the one cent cost of a penny. I like looking through pennies to be perfectly honest. I do it while I watch TV.

Secondly, he is talking about a $10,000 investment weighing 1.5 tons. So what? I am not using my garage for anything else. Why not stack 20,000 rolls of pennies in there?

Lastly, why melt them down? People will be buying them on eBay just like silver right now.

And nickels are even easier. Just go buy however much you want in Fed. rolls and throw them in the safe. What could be easier?

I might end up looking like the idiot, but unless they take the penny/nickel out of circulation, the only thing I have to lose is the price of inflation; and the upside is too pretty to let this slide. Why else would they make melting pennies and nickels illegal??
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Old 07-23-2007, 05:24 PM
Got Goldies Got Goldies is offline
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Its a waste of time to collect any penny's. You could do that by collecting $1 e-paper.
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Old 07-23-2007, 05:30 PM
Got Goldies Got Goldies is offline
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Originally Posted by Loco Vida View Post
I know GG but I got a 55 gallon drum that is full that I have been tossing change in since I was a little boy.......so is a nickel made of nickel?
The nickel i dont think is a nickel anymore. How they get it to look like a nickel is beyond me. I'd rather toss kookaburra into a plastic dump. 1 kookaburra a day keeps the spiders away.
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Old 07-23-2007, 06:01 PM
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I don't believe the US nickels have ever been pure nickel. They are cupronickel, an alloy that is 25% nickel and 75% copper. During WWII they used something else since there were nickel shortages due to the war. Same thing happened in Canada.

Canadian nickels went to cupronickel in 1982, and in 2001 they became nickel-plated steel. I imagine this will happen in the US soon as well.

2ndAmendmentguy - Agreed, who would pay a premium for circulating coins??? I go to the bank and ask for rolls. And pennies? Just pick them off the ground, even the bums don't want them anymore. Need a penny, take a penny? Sure, or just put in a dime and take out 10 pennies. Who cares?
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Old 07-23-2007, 07:04 PM
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Quote:
Originally Posted by Got Goldies View Post
Its a waste of time to collect any penny's. You could do that by collecting $1 e-paper.
Why is it a waste GG? And WTF is e-paper?

Not to be insulting, but I find it a bit dense on your part to say that collecting pennies is a waste. Everyone is looking for a decent investment with low risk / high yield. isn't that what we all want?

Well, what is the risk? Worst case scenario a penny stays worth a penny. You have lost nothing but the cost of inflation. On the other side of the coin (pun not intended), base metal use in China and in other countries rises dramatically, and base metals take off, leaving a penny worth whatever...(5 cents, 8 cents, 10 cents... you get the idea).

Lets say that it gets to 5 cents a piece. your 50 cent per roll investment is now up to $2.50. That is a profit of $2.00 per roll. Now realize you would not melt them, but instead sell them on eBay to these people who are buying silver for well over $15/oz. I'm sure they would fight to pay $3.00 per roll. Then you make an additional $1.00 on shipping and you have made $4.00 on 50 cents.

Lets say you had 1000 rolls of pre-82 pennies. Your initial investment was $500. After selling them to those ravenous beasts on eBay, you are sitting on your couch looking at $4000. That is a pure profit of $3500.

If you can look me in the eyes...well; if you can look me in the computer and say that a profit of $3500 with little to no risk is a waste of time, you must be sitting in a multi-million dollar house wiping your ass with $100 dollar bills.
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Old 07-23-2007, 08:55 PM
Megiddo Megiddo is offline
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Unhappy I agree

Quote:
Originally Posted by 2ndAmendmentguy View Post
Why is it a waste GG? And WTF is e-paper?

Not to be insulting, but I find it a bit dense on your part to say that collecting pennies is a waste. Everyone is looking for a decent investment with low risk / high yield. isn't that what we all want?

Well, what is the risk? Worst case scenario a penny stays worth a penny. You have lost nothing but the cost of inflation. On the other side of the coin (pun not intended), base metal use in China and in other countries rises dramatically, and base metals take off, leaving a penny worth whatever...(5 cents, 8 cents, 10 cents... you get the idea).

Lets say that it gets to 5 cents a piece. your 50 cent per roll investment is now up to $2.50. That is a profit of $2.00 per roll. Now realize you would not melt them, but instead sell them on eBay to these people who are buying silver for well over $15/oz. I'm sure they would fight to pay $3.00 per roll. Then you make an additional $1.00 on shipping and you have made $4.00 on 50 cents.

Lets say you had 1000 rolls of pre-82 pennies. Your initial investment was $500. After selling them to those ravenous beasts on eBay, you are sitting on your couch looking at $4000. That is a pure profit of $3500.

If you can look me in the eyes...well; if you can look me in the computer and say that a profit of $3500 with little to no risk is a waste of time, you must be sitting in a multi-million dollar house wiping your ass with $100 dollar bills.
I agree with your assessment...check out coinflation.com, they have the story and current copper & nickel values. I'm hording mine. What else can you do with them? pennys valued at over double and nickels at over 7 cents each. I don't imagine too many people thought a War Nickel would be worth 75 cents back in WWII. Perhaps GG posts to often to think through what he's putting down. At over 1000 posts a month, how much thought could go into each post?
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Old 07-23-2007, 09:23 PM
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2ndAmendmentguy 2ndAmendmentguy is offline
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Quote:
Originally Posted by Megiddo View Post
I agree with your assessment...check out coinflation.com, they have the story and current copper & nickel values. I'm hording mine. What else can you do with them? pennys valued at over double and nickels at over 7 cents each. I don't imagine too many people thought a War Nickel would be worth 75 cents back in WWII. Perhaps GG posts to often to think through what he's putting down. At over 1000 posts a month, how much thought could go into each post?
Agreed. I am sure there were people who said that hoarding pre-65 dimes quarters, halves and silver dollars was stupid. But those people who prevailed and collected them are now selling the dimes for a dollar, quarters for $2.50, halves for $5.00 and dollars for over $10.00.

I would welcome more opinions about this controversial topic as I am interested in different spins on this speculative investment.
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