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Penny Hoarding

Updated on October 8, 2012


Copper is a chemical element (Cu) and a ductile metal with both high thermal and electrical conductivity. It has a myriad of uses including, electrical use, piping, heatsinks, musical instruments, structures and much more. However, 95% of all the copper available to be mined has already been done. Even though we recycle copper, it remains a finite resource on this planet. Anything finite means that the price of the metal can only go up as demands and consumption rise.

Not only has there been a dwindling amount of this resource, but as well as lack of skilled laborers and engineers willing to do the onerous job of mining the copper. Production for many companies like “Freeport-Mcmoran copper & gold” and “Xstrata PLC” fell by as much as 5% back in 2010

With copper prices slowly increasing steadily over the years it’s no wonder it has become a popular hobby among investors to hoard pennies and other copper materials.

Copper hoarding has become two-face in the investment business: a safe haven for those anticipating the awaited economic collapse that seems only around the corner and those looking to make a nice profit when pennies will no longer be legal tender and melting will be permissible. At the end of 2012 Canada will be phasing out the penny because it costs half a cent more to produce the penny, meaning the government has been losing millions in production costs over the years.

For American pennies, anything pre-1982 will be 95% copper whereas Canadian pennies can be pre-1996. Currently (2012) an American 1982 penny is worth 2.5 cents. It may not seem like much, but don’t underestimate the power of a hoarding.

You can be assured that as long as copper is continued to be used as material and inflation continues, then the price of copper only has one place to go, up!

However, the counter-argument to this potentially silly investment is that you aren’t actually allowed to melt the pennies for their copper value because it’s illegal. This was the common saying back in the day, but as you can see – Canada is phasing out the penny – that melting the penny will be legal and profitable

The best tip for anyone looking to start their own hoard is to just start hoarding.

Grab them from the ground, your couch, your parents etc.. Look for pennies anywhere and everywhere-- each one counts. To me it's an easy investment opportunity and I believe it's always good to cycle your money in to multiple investments; keep your fingers in many pots at once.


happy hunting.

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    • jgetsmoneyy profile image

      jgetsmoneyy 

      5 years ago from Las Vegas, NV

      @yuki92, sorry been mia for a few days. As for the sorting machines do a youtube search or google search for a product called Ryedale. If you're looking to sort huge bulk amount of pennies this is the machine to get, it's very expensive though so unless your gonna be going thru tons of pennies probably not worht the investment. Mine I built with a vending machine part that cost maybe $20 called a coin comparator. I made mine a little fancier but really you could literally just screw it to a 2x4 and it would work. One feature I'd like to add to mine would be an autohopper so you don't have to handfeed. Even handfeeding beats hand sorting but it would be nice to just dump a bucket and let them sort. I'm actually selling mine on ebay currently although I only have one I don't make them to resell really. There's a few other machines I think one called copper king all are basically crap and use walmart coin sorters that are tweaked to sort coppers but they aren't meant to handle the volume and will break.

    • Yuki92 profile imageAUTHOR

      Yuki92 

      5 years ago from Vancouver

      @jgetsmoneyy sweet gig man. I'm definitely going to look in to getting a coin comparator- sorting coins by hand can be a bit tedious at times, heh, but for some reason I still find some fun out of checking each coin for it's date and manually sorting through it I will probably just end up doing something similar to your setup, i can't see myself even investing in 100$ for a coin separator. The Canadian pennies are 95% copper below '97, which is nice because there are still so many in circulation and still will be for a while. I also collect nickels pre '99 as they are mostly copper.

    • jgetsmoneyy profile image

      jgetsmoneyy 

      5 years ago from Las Vegas, NV

      @yuki92 thats a cool idea i never thought of storing pennies in copper pots, kettles, etc.yeah thats nice, if i remember correctly the canadian government is actually also taking the coppers out of circulation on a massive scale at your mints or treasury or whatever aren't they? are your pennies a higher copper value too? as for the sorting machine i actually built it myself. you just need to buy whats called a coin comparator. its used in vending machiens to basically stop people from putting slugs in. you can pick them up used for like $15 new for maybe $20 or a little bit more. i made kind of a nicer box for it to sit on but really you could just screw it to a 2x4 and be done with it. the nice thing would be if i built a hopper on it so it auto fed vs me having to handfeed it. if your interested in a machine check out a ryedale machine. the nice auto feed ones cost over $500 which is way overpriced in my opinion. ryedale does make a machine called the sniper for like $100 but is a handfed machine as well. there's some other machines people made copying and selling to compete with the ryledale but they are all kind of slapped together and junk for the price they are asking. i actually had mine listed on ebay recently but it didn't sell. i may throw it back up there.

    • Yuki92 profile imageAUTHOR

      Yuki92 

      5 years ago from Vancouver

      @jgetsmoneyy Yeah, I've been storing my pennies in copper vases and other copper bowls and pots etc.. I get them from thrift stores if they're at a decent price. Fortunately for myself, I'm in Canada and that means any pennies pre-97 are copper. However, that sorting machine you've got there is definitely very handy and much more efficient than the human hand. Where can you purchase them?

    • jgetsmoneyy profile image

      jgetsmoneyy 

      5 years ago from Las Vegas, NV

      @yuki92 you're right about rolling the pennis, that would make storage much more compact. ive stored mine in coffee cans, those orange home depot 5 gallon buckets, paint cans and 5 gallon culligan water jugs but that would be horrible trying to move those if i ever wind up moving. I actually built a penny sorter that sorts the pre 82 coppers form the post 82 zincs heres a video of it in action

      http://www.youtube.com/watch?v=v-UI7fbGpb8&fea...

    • Yuki92 profile imageAUTHOR

      Yuki92 

      5 years ago from Vancouver

      @jgetsmoneyy

      Yes, storage can be a problem, but if you want to be very meticulous about it then you can roll all your pennies which will give you a lot more room. If you look on ebay and other places for people selling pennies, you can see people can manage to gather a lot of weight in pennies in a relatively small surface area if they're rolled up.

      Also, the price of copper is still low compared to it's peak back in 2011 @ 4.5$~. Prices will eventually start to climb, but obviously at a slow rate, and when that happens you can expect all other metals like gold and silver to rise with them.

      Thanks for your comment!

    • jgetsmoneyy profile image

      jgetsmoneyy 

      5 years ago from Las Vegas, NV

      Intersting hub. I have a few hubs and blog posts on the same topic. My main problem is the storage. Pennies take up a lot of room if you want any significant amount and it takes a significant amount to equal anything since copper prices are really low compared to othr metals.

    • gtf profile image

      gtf 

      6 years ago from Orange County

      Great hub! Thanks for the info.

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