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Penny & nickel hoarders, here's my challenge

I read recently on this board that people think they can make an instant 20% profit on nickels, or 100% on copper pennies.

I know it's wrong and I challenge ONE PERSON to prove it. (I DON'T ENCOURAGE MELTING, THAT'S ILLEGAL, but if you think you can break the law and brag about it, be my guest)

Let's start with pennies.
(I know this from experience)

-copper pennies only consist of 15% or less of all pennies.
-no matter how fast you can sort and filter through them, you'd have to return and use the leftover zincs.

Ok, let's say you DID go through all that work. How many people can actually sell their copper pennies today for more than 2x face value?

Now, for the nickels

-nickels are 75% copper, 25% nickel.
- the "120% face value" you're told by coinflation.com is the MAXIMUM metal value contained (this assumes it costs nothing to separate the allow and people pay spot price for it)
- in reality, NOBODY pays for unpure metal for its metal price
- I challenge ONE person to show me he's sold nickels for profit, or molten them and then sold it, doesn't matter. (Troy thinks he can melt them and not be discovered)

I've done the math, and asked around. I'm convinced until proven otherwise, that nickels DO NOT AND WILL NOT sell for a long time. (and when they do, they don't be for the melt value you see on coinflation)

If anybody has sold copper pennies for above 2x face value, I know a place which sells them for less than 2x face value (shipping included), might cut you the work and time.

I will no longer mention the website as I was accused of promoting it as my own. I have NEVER encouraged anybody to hoard nickels as they're ZERO profit. I ONLY recommended that site because from my experience, the price they sell is much worth it when time saved is factored in.

Please don't reply with "Yeah, but I can wait, and when that number goes up....blah blah blah". Until it happens, you can shut up. There is no profit now, admit it or not?

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I don't hoard pennies to sell them today

I hoard pennies to sell when silver is priced out of the budget of everyday people and copper and other materials (like zinc) become the way the working man protects their wealth. We all know it is just a matter of time before the world fiat currencies crash. Copper will always be valuable and if you can name one other commodity that you can get for less than half of it's value let me know and i will start hoarding that as well. Just because it is illegal to melt down coins today does not mean it will be in the future. Besides, just from a numismatic point of view, these coins will be valuable in the future. And remember, that every $.01 appreciation in the value of those coins will mean a 100% return on your investment.

agreed. again, wasn't

agreed.

again, wasn't challenging people who were willing to wait.

Looks like those who claim "instant profit" or "easy money just by going to the bank" are a minority.

I'm still waiting if I'm wrong.

Your post seems kinda angry,

Your post seems kinda angry, but I'm gonna comment anyway.
I am surely no expert on coins in any way, but I do have this question.
Wouldn't it be the same as someone who saved their silver dollars back when they were actually worth the face value of $1? Morgans and Peace dollars are not pure, yet today they sell for close to $25.00. To get the silver the metals would have to be separated, no?
Would that person have been stupid for holding onto those silver dollars?

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No, it's not the same, for

No, it's not the same, for these reasons.

a) silver is much more valuable than copper will ever be
b) unpure silver, with copper, is still 90% silver, much different than being 75% silver.
c) knowing that silver is easier to store and purchase, one would be stupid to hoard anything less profitable
d) hoarding silver coins back then would still be "no instant profit" and "wait until decades later", which is fine if you like to wait.
e) hoarding silver coin back then made some sense when we had much less opportunities to make money
f) today, it's not illegal to melt junk silver coins, and as long as it is, junk silver will be worth much less than its melt value
g) yes, some may want silver to be purified, and 90% purity silver is much more than 75%, do you know people buying 75% silver coins now?

The main point of my post is the show that there's no easy profit now, and if you can afford to wait, fine, admit that, don't mislead people into thinking they can flip currently circulating coins for profit you've not done it first.

Sorry but I'm not up for your challenge

I'm a coin collector. That's why I fool around with coins. It's called a "hobby".

Yes, I hoard copper Lincoln cents and nickels. But I don't expect any kind of "return" at this point for either of these denominations. Back in the 60's people hoarded 90% silver coins for exactly the same reason and now they're cashing in. Some of them probably think they're even making a "profit" when, in reality, they've simply hedged their value against fraudulent central banking shenanigans.

History has shown us that as the cost of minting coins becomes more than their face value congress will soon authorize a composition change. This is the point after which hoarders begin to be rewarded for hoarding. We are at that point with nickels and even zinc cents. What congress will do and when they will do it is anyone's guess.

I have no real intention of "cashing in" on my copper cents or my nickels anytime soon. They are going to my son or they might be my "fun money" after I retire.

no need. I wasn't challenging

no need.

I wasn't challenging collectors who have fun.

I was challenging people who claimed they know what they're doing with the math, and said they can make profit (I know they can't, but nothing wrong with having fun)

meekandmild's picture

Get $1 coins from the mint

that's nice. what's the

that's nice.

what's the profit?

So you saved a trip going to the bank by sitting at home for 2 days waiting on the shipment, AND?

meekandmild's picture

2 fold

the coin $ has more valve than the paper $

the coin $ from the Mint doesn't go through the FED

Not a big issue, but all the tiny issues will add up.

I know that already. Let me

I know that already.

Let me know when this info profits you.

It's illegal to do what you

It's illegal to do what you are challenging people to do. Even if some had done it, it would be silly to post it here. And some even have the necessary equipment and expertise to separate the metals now.

How do you think some of the people who gold pan end up purifying their placer/flour gold and then selling it as bullion?

Oh. and many times (depending on the specimen) placer gold or gold nuggets will sell for face value or more due to the scarcity of the metal in it's raw format.

So.. people DO pay more for metal when not pure... sometimes.

Ha, if it's illegal, then

Ha, if it's illegal, then they ought not to talk about it. I think I made my point then.

I have NOT challenged people to melt, that's illegal and I made it clear. It's some who try to tell me they can get away with it that I want to hear if they dare speak of it.

Ok, people DO pay for unpure, but it better be gold or silver. Unlike for copper, zinc or nickel. And there better be a good amount, not 10s of dollars, but in hundreds.

Some here have said they can sell it to somebody without melting it themselves, I'd love to hear how that works!

I think in the event of a

I think in the event of a severe crash -- there would be no police force to come arrest you -- people could find legitimacy in melting coins.

But they could only easily get away with it in extreme circumstances like that.

There have been arrests before for this very same thing. And the law which prohibits melting of nickels / pennies was prompted by someone who was doing that very same thing.

So I think it's all possible to melt and make money from the pure metal -- but not without some effort. And in all reality, it would probably be less effort and less trouble... and more profitable to start manufacturing and distributing marijuana.

that may be, and that's not

that may be, and that's not my point.

I won't argue with luck or extreme circumstances as possibilities.

I'm only trying to show that UNTIL anything big happens, THERE IS NO "instant profit" or "easy money just by putting my paper money into coins", as troy and others have said.

you are correct that there's plenty of lower risk, higher profit ventures before that.