It’s not as crazy as it sounds.
With highly reputable online precious metals bullion dealers such as Gainesville Coins starting to offer their customers “investment-grade” bullion copper coins, one might be tempted to go “guerrilla” and hoard copper pennies — much as early silver investors did several years ago, by purchasing and acquiring from collectors as much “junk silver” as possible (U.S. coins that contained some silver content).
If you decide to do this, consider the following:
1. You want to focus on hoarding pre-1982 U.S. pennies, which contain 95% copper content, making the coin at least twice as valuable as its 1 cent face value. (Post-1982 pennies are not worth collecting, as they contain only 2.5% copper content — the rest is zinc.)
2. You need a lot of storage space. And the coins get heavy fast; 3.11 grams per coin if it’s a pre-1982.
3. Shipping is an obvious issue. If you ship to a buyer across the country, in order to “cash out” and take advantage of higher copper commodity prices at a future date, you could well end up losing all of your profit to transport costs.
4. Massive volume is necessary. We’re talking pennies here, literally. I personally won’t be trying this offbeat investment tactic, as I don’t have the patience (or space) to hoard tens of thousands of pennies for what could be a very minimal profit — but then again, that’s what they said about silver a decade ago…
5. Don’t melt your pennies into more convenient bullion bar form. Although it’d be easier to store in this form, melting or otherwise disfiguring U.S. currency is illegal.
— provided by Outlaw
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