Penny Hoarding
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.
