“It’s one of those things where I think people get attached emotionally to the way things have been,” the president said. “We remember our piggy banks and counting out all the pennies and then taking them and getting a dollar bill or a couple of dollars.”
“This is not going to be a huge savings for government. But anytime we’re spending more money on something that people don’t actually use, that’s an example of something we should probably change,” Obama said. “One of the things that you see chronically in government is it’s very hard to get rid of things that don’t work so that we can then invest in the things that do.”
- Barack Obama, 44th President of the United States
Opinion on Obama’s Penny Speech 2013
Let’s be blunt. Eliminating the penny means admitting that inflation has run rampant and the one-cent, is, essentially and literally, worthless.
The penny is, however, money. Remember that it is still a legal form of currency. So when money becomes worthless, it is an admitting there is a problem with the money system.
Meanwhile, Obama and Bernanke are printing unlimited amounts of money. Buying up bonds and other various things to attempt to stimulate the economy. Eliminating the penny would bring attention to rampant inflation currently going on under Obama’s administration.
This would be a big ‘No No” to do. Therefore, side-stepping the issue is the politically motivated thing to do. And exactly what happened.
In fact, it is important to note that while this article may single out both Obama and Bernanke, this isn’t a political party issue. This is a United States political issue. Meaning, the policies from the mainstream political wings on both sides are manipulated by the financial institutions and their benefactors (think Federal Reserve is neither Federal or a Reserve). This has been going on since the inception of the latest Federal Reserve in the United States one hundred years ago.
The Coin Modernization Act of 2010 has officially announced their findings. So what is the answer?
‘We need more time.’
No news is the absolute best news as it means that we all have a lot more time to capitalize on pennies and nickels before the Government takes them in themselves.
Most intriguing is the part on the one-cent coin:
“At Present, changes to the metals formulation of the one-cent coin would not yield significant cost improvements over the current formulation because the current market price of zinc is competitive with the prices of the credible alternatives, steel and aluminum.”
What solution does this leave? Elimination of the one-cent as the only viable solution.
Buy pennies and buy nickels while you can. If supply drops to zero from a coin denomination elimination, whether you’re a bullion investor or a numismatic coin collector, prices inevitably must go up.
A friendly reminder that the Coin Modernization Act 2010 is to report its findings mid-December 2012. That means, any day now, we could get the update on whether the penny is being eliminated or having a metal composition change. This also goes for the nickel being eliminated or having a change in metal composition.
Most likely, any change in metal composition would be a change to steel. Right now, pennies are made of 97.5% zinc and 2.5% copper. Nickels are 75% copper and 25% nickel. Each costs more than twice its face value to mint.
The Coin Modernization Act of 2010 itself was passed on December 14th, 2010 and was enacted to:
‘provide research and development authority for alternative coinage materials to the Secretary of the Treasury, increase congressional oversight over coin production, and ensure the continuity of certain numismatic items’”
Since its inception, there are many rumors floating around of trials of new compositions for both the penny and nickel, particularly steel. Taking a look at Canada, one can see the penny was made of steel in Canada by the Royal Canadian Mint, and actually eliminated as of this year, 2012.
The Canadian nickel is currently made of a metal composition of 94.5% steel, 3.5% copper, and 2% nickel plating coming in at a weight of 3.95 grams.
So what happens next? Only time will tell. But one thing is certain.
History repeats. The price to buy pennies sky rocketed as soon as the announcement of the Canadian penny elimination came out. Will it happen again in the United States? Perhaps the impending “fiscal cliff” talks will push the change or elimination of the penny and nickel right over the edge. After all, the cost to make the penny is 2.41 cents.
Hindsight may be 20 – 20. But we can all conclude that buying pennies and nickels now creates huge potential gains for you with their respective face value to fall back on.
Buy pennies and buy nickels while you can. If supply drops to zero from a coin denomination elimination, whether you’re a bullion investor or a numismatic coin collector, prices inevitably must go up.
According to the United States Mint 2011 annual report, it costs 11.18 cents to mint one individual nickel. That means it costs 2.236 times the actual face value of the five cent coin.
The nickel is made of 75% copper and 25% nickel. Because of this Cupronickel (copper-nickel) metal composition, the nickel has a greater metal value than face value, meaning, every nickel is worth more in its metal weight than its face value. Because of this fact, the U.S. made it illegal to melt down the nickel.
Even with these melt laws in place, prudent commodity investors and hedge funds are purchasing nickels as a medium to long term commodities Cupronickel investment.
When this metal composition change of the nickel occurs, investing in Cupronickel five cent coins will become significantly more expensive to incorporate infrastructure sorting costs to separate the newer steel nickels from the more valuable copper nickels.
In the meanwhile, nickels are disappearing from circulation from the simple $100 nickel box to the $1 million bulk investor. Because of this, more nickels are being minted by the millions upon millions to offset the loss in circulation. This process cannot and will not continue with a change.
Looking to invest millions in copper in the most stable, real, and cost effective manner possible? We can help you invest in the copper penny (95% pure copper, over 2.5x face value in metal value) and the copper nickel (75% pure copper, over face value in metal value as well), both minted in the United States.
These little treasures may be only one cent or five cents in face value individually, however, added up, make a sizable asset and significant metal value return due to their intrinsic metal composition.
We offer highly competitive pricing to ensure a lucrative and profitable return for your investment. This is made possible for two reasons:
We can acquire pennies and nickels for face value plus our overhead (fees we incur, machinery, labor, etc) so our cost is much less than actual investment grade copper.
When you invest in bulk of this magnitude, our cost structure is lowered. A lower cost structure for us means a lower investment cost for you.
We advise the strictest of caution of any website that offers a “one-click” buy for investments of this size. You deserve a personalized touch and trust by being able to talk to a real person. Call us: (302) 265-3677.
Feel welcome to browse our website to learn about the advantages of investing in copper pennies (read more: How to Invest in Copper Bullion) and copper nickels.
Most importantly, contact us to let u know your goals so we can produce the best individualized method of achieving them.
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Bad economies are often seen as when stocks are down, things are more expensive, and people are losing money. Everyone seems to want to find the best low risk way to invest, yet wants to get high yielding results. Yet there’s an important thing people forget during the panic of a bad economy: In order for people to lose money, other people have to be making money. After all, if you bought a stock for $100 and sold at $90, you lost $10 (and someone had to buy for you to sell). But where did the $10 go? Someone made that $10 and therefore made money. This is proof that you can make money during a bad economy. But let’s steer clear of the stock market to find the low risk investment that’s right for you.
When economies get bad, people want to reduce risk by seeking those low risk investments that still allow an investor to make a profit. Gold and silver are the big nest eggs people tend to buy. But gold is expensive, and silver isn’t exactly cheap either. So what can you invest in? There are two really cheap ways you can invest your money in a bad economy to make a profit. We’ll start with the one with higher cost: the copper pennies.
Copper Pennies
Ever heard of penny stocks? Worthless stocks that may go up literally by a penny if you’re lucky. Why play the stock market when you can just not play the game. Pennies today are made of 97.5% zinc and 2.5% copper. This metal composition was changed in 1982 where the penny was made of 95% copper and 5% zinc. A penny may seem small, but all that copper adds up. In fact, even in this bad economic time (where copper price is on its worse day), the copper penny is worth over two cents. That means you’re getting two cents for every one cent. Of course you can’t melt pennies because it is currently illegal, but that’s the best part. Because it is illegal, copper penny prices are down! That means all you have to do is buy cheap and wait.
You could drop between $1600-$2000 on one troy ounce of gold. $30 for one troy ounce of silver. Or go the cheap route in copper by buying 68 pounds of copper for under $200. You can buy copper pennies from us even cheaper than that. But we encourage you to shop around to prove our great price, quality, and service (read about buying copper pennies on Ebay). Why 68 pounds? Because 68 pounds of copper pennies is about $100 face value in pennies as a currency, which is how it is generally traded and shipped. Yes, that’s right, shipped. The best part of this investment is you actually get them in the mail and hold onto them. No need to worry if the bank will crash or if you can access your investment on the weekends, because for you, you have them in your possession 24/7. Just to help explain the cost comparison, 1 pound = 14.5833333 troy ounces. So 68 pounds is about 991.67 troy ounces. This may seem like a bunch of random numbers, but doing the math shows that you can buy a significantly larger quantity of the metal copper for a fraction of the price of gold or silver. Copper is a heavily demanded metal around the world with many practical uses. That makes copper pennies an inexpensive and cheap metal to invest in. And the best part is, stocks may have the ability to hit zero, but your penny won’t. After all, a penny is worth at minimum, a penny.
Copper Nickels
Want to go even cheaper? Nickels are currently made of 75% copper and 25% nickel. This means their metal value in copper also makes them worth more than their face value. The catch is that the nickel has a face value of five cents, making the copper value in comparison to its face value significantly smaller than the penny (read about should you by copper pennies or nickels). Still, if you want to find the cheapest way to invest in copper, nickels are a great way to go. Nickels sell for just slightly above their face value so you have very marginal initial cost. And remember how a penny is always worth a penny? Well a nickel is worth a nickel, so you can always cash out for very little risk.
Copper pennies or copper nickels
Copper Penny
1909-1982
weighs 3.11 grams
95% copper, 5% zinc
2.9545 grams copper
0.1555 grams zinc
100 coins per $1
Nickel
1946-present
weighs 5 grams
75% copper, 25% nickel
3.75 grams copper
1.25 grams nickel
20 coins per $1
Intrigued by the idea of investing in coin but not sure which coin is right for you? It always comes down to math. Nickels take up less space since they’re bigger, have less risk since each coin is worth five cents, and have a smaller premium over face value to invest. Copper pennies take up more space, have a higher risk since each coin is only worth one cent, have a higher premium above face value, but have a significantly higher copper content compared to the same face value dollar quantity of nickels.
What does this mean? Nickels are to play it extra safe with lower returns. Copper pennies are to play it safe with higher returns. Both are cheap ways to invest during a bad economy. So either way you go, you’ve got a big win on your side right from the start.
Nickel Investors beware! You are about to jump the most important hurdle of the entire nickel investing process. And you can never go back. On December 15th, 2011 new legislation proposals have called for the elimination of the copper nickel in favor of the cheaper metals by changing to steel nickels. Though the bill was introduced with regional incentive to Ohio, with its historically developed steel industry, the lasting results and effects of the bill will still be felt nationwide. Will this bill pass? No one will know until it is voted on. But the point is that the bill existed, the public will become aware of the growing cost to make a nickel, and therefore, support the change. Politicians like being re-elected, so they do what makes their voters want to continue to vote for them. Therefore, there is a great possibility that the nickel metal composition change will occur. The 2012 nickel composition is still zinc, but if this bill passes, the 2012 nickel composition may become steel.
Nickel Prices
What does a metal composition of the nickel mean to nickel prices? Right now, if you want copper nickels, you can drive around to banks and pick up nickels from branches. All nickels you get will be copper (unless you find silver war nickels). You can order from us to save huge amounts of time and we can mail nickels directly to you or any place of your choosing. We can even help you arrange to store hundreds of thousands of dollars in secured facilities if you wish to make bulk large nickel investments.
That’s all about to change.
Once the nickel metal composition changes, nickel prices will jump because sorting will become required. Steel nickels are not as valuable as copper nickels. You will need us to process all nickels to sort the copper nickels out of the steel nickels. This adds two brand new dilemmas to nickel investing: Time and money. Time because it requires vast amounts of time to sort coin. It is quite a process to sort through literally tons of coin. Money because not only does time equal money, but there is cost to sort, and redeposit those steel nickels back to the bank. Basically, nickel investing goes from incredibly cheap, to having higher cost, making your initial capital investment in nickels greater. Buy nickels today before a metal composition change occurs.
Coin Composition Change
When a coin is made, there are three main stages to its development and practicality: Production, distribution, and use. Respectively, these could also be called: Cost, Value, and functionality in society. The production of the coin is the cost to physically create the coin. Distribution is the cost to transport the coin to users and the price the producer (in this case the United States Mint) can sell the coin for. Use is simply the willingness of the coin buyers to have a use for the coin, whether selling numismatically for coin collecting or in trade as a currency.
The sale price in the distribution stage, with copper nickels, is lower than the production cost. Meaning that even with charging a premium above face value, the United States Mint does not have enough demand for the new copper nickels to offset the manufacturing cost to make the copper nickels. Therefore, a copper nickel is a bad business decision. This bill is an attempt to make the sale of the nickel a good business solution, which assumes the latter stage (use of the coin in society) is still practical.
Nickel Investing
Nickel investing is at an important crossroad. The copper nickel is worth more than its face value. However, with copper prices lower, this fact is hidden by the state of the economy by manipulated metal prices, including copper pricing. As time progresses, copper price will correct itself and the copper nickel value will correct with it, rising in metal value. Right now, you can buy copper nickels dirt cheap. Copper nickel investing even has a floor insurance back up plan: Each nickel is worth five cents, so in a worst-case scenario, you can cash in on your currency value of the nickel investment to have an investment exit strategy.
If the nickel metal composition changes to steel nickels, you won’t be able to simply buy copper nickels without the process of sorting equipment usage and access to large volumes of nickels. This creates a processing problem and a sourcing problem. The more work involved in an investment, the more cost. We have a solution: “Buy nickels today” before the term becomes “buy copper nickels today.” Once the term changes, the cost investment capital cost with the extra need to differentiate between copper nickels and steel nickels.
Nickels. The runner up coin to the copper penny or underdog fighter with quite a punch? Copper pennies mathematically are worth more than nickels in copper content compared to face value (from an investing point of view), but the nickel has a rather intriguing investment benefit the penny cannot do. The nickel is worth five cents. At first, you might simply shrug this fact off as an obvious one. But the real nature of the nickel is that it contains .7955 more grams of copper in each coin than a copper penny. For the math wizards out there:
Pennies
Nickels
Copper Penny
1909-1982
weighs 3.11 grams
95% copper, 5% zinc
2.9545 grams copper
0.1555 grams zinc
100 coins per $1
Zinc Penny
1982-present
weighs 2.5 grams
97.5% zinc, 2.5% copper
0.0625 grams copper
2.4375 grams zinc
100 coins per $1
Nickel
1946-present
weighs 5 grams
75% copper, 25% nickel
3.75 grams copper
1.25 grams nickel
20 coins per $1
$1 of nickels means 20 coins. 20 coins X 3.75 grams copper per coin = 75 grams copper. 20 coins X 1.25 grams nickel per coin = 25 grams nickel.
Therefore, $1 of nickels, gives us a metal value of 75 grams copper and 25 grams nickel.
$1 of copper pennies means 100 coins. 100 coins X 2.9545 grams copper per coin = 295.45 grams copper.
100 coins X 0.1555 grams zinc per coin = 15.55 grams zinc.
Therefore, $1 of copper pennies, gives us a metal value of 295.45 grams copper and 15.55 grams zinc.
Here are the comparative results:
$1 nickels
$1 Copper Pennies
75 grams copper
295.45 grams copper
25 grams nickel
15.55 grams zinc
At first glance, one could easily walk away knowing they get a much bigger quantity of copper for the same face value of coin in copper pennies than they do in nickels. But what if you don’t want to pay a premium for coin? What if you want to pay as close to face value as possible? Silver coins of the past used to be worth their face value. In fact, the cost of silver has risen so much, we often forget about the quality of silver in a silver coin.
Silver War Nickels
Silver war nickels are only 35% silver. Yet it has one of the highest, if not the highest, return on value of silver content for face value. The figures as of late 2011 have this little silver coin from the 1940s valued at over a 3200% return on its face value (that’s a nice investment return). A 90% silver half dollar has a investing return of over 2000% as of late 2011. Even the 40% silver half dollar coin at the same time period has over an 850% return in value over its face value. In fact, this 40% silver half dollar coin has the lowest U.S. return on money for face value purchase out of any U.S. coin. 850% seems like a fairly good rate of return as a worst case scenario if you picked up a U.S. silver coin.
So what is the point? Where are we going with all of this? The 40% silver half dollar was (and is) worth less than the 90% silver half dollar. There was a point in time that the 90% silver coin surpassed its face value while, proportionally to today’s value ratios, the 40% silver coin had not. So why would anyone want the 40% silver coin if it hadn’t surpassed its value? Because if you had picked up this little number while no one else wanted it, you would have a great ability to capitalize in vast quantities early on, before prices rise. Most people don’t jump on investments until they’ve already skyrocketed or jumped in value (and thus price) and everyone is running after that investment. The key is to do your research and find the investment before everyone else, getting in early, and capitalizing on the entire profitability of an upwards trend. Nickels are just now breaching their face value due to their copper content. This means we are in a historical moment for the nickel. Is this the right time for you to pick up nickels?
Nickels Insurance
Nickels have a unique factor over the penny that if you ever wanted to cash out at face value of your investment, you’d receive five cents for every coin rather than one cent. Yes, this may seem obvious, but it is still an important factor to weigh in when making any investment decision. Buying nickels in bulk means you can cash out in bulk at your local bank. This is not an ideal scenario, but it is an option. And the more options you have, the better. In a sense, this is creating an insurance option for your investment since your nickel investment will always be worth at least five cents per nickel.
Nickels Price
You can buy nickels from your local bank branch. They come in $100 boxes, with nicely wrapped and stackable rolls. Maybe your bank charges. Maybe they don’t. Maybe they can order as much as you want. Perhaps they can’t. But the point is, the composition of the nickel has not changed and is 100% not needing to be sorted (unlike the penny which does need to be sorted). Is it worth the time, gas, etc to drive to the bank to pick up nickels yourself? We don’t think so. Rolls are a pain to break open. Plus you can’t verify what is in between the outter two coins. They may be easy to stack, but cashing out may be difficult if your buyer doesn’t want rolled coin.
That’s why you can buy nickels straight through our website and we delivery to your door through USPS. Or you can even buy bags of nickels from us and come arrange picking up to save on shipping cost. We can order as many bags of nickels as you want, which come in increments of $200 per bag. These nickel bags will come bank-sealed, circulated, and unsearched so you may find all sorts of rare nickels.
Why Buy Nickels
Copper pennies are worth a lot more than their face value. This happened some time ago, and now there is a premium involved in buying copper pennies. In addition, there is labor-intensive techniques and high-tech machinery needed to sort out the copper pennies from the zinc pennies (unless you are hand sorting pennies). If you are hand sorting pennies, we have the utmost respect for you as we love finding rare coin too and would be happy to help save you the time of picking up penny bags and nickel bags by sending to your door. That way you can spend the time searching instead of pesky bank lines and rush hour traffic. But back to the point, copper pennies cost more than nickels because, frankly, it’s a lot more work to get you copper pennies. Nickels are easier. No sorting is needed, just the time and money in acquiring the nickels. The cost is significantly cheaper. If a metal composition changes (as it widely predicted to occur in the near future), then copper nickels will no longer be easy to come by. After all, why do we say copper pennies and not just pennies? That’s because there are multiple metal content types for pennies. Nickels are called nickels because right now there is only one major metal content type for nickels. But that will change.
Let’s be straight forward that if a seller incurs more cost and time to produce a product, the product costs more. Therefore, the price would rise dramatically as a result of having to sort nickels after a metal composition change. And rising prices later on means buying now, while prices are low, will create a much greater return on your initial investment. Buy nickels while prices are low.
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Low-risk investing is wise for any long-term investor looking to have gains while preserving wealth. Nickels offer a great solution for low-risk tangible investing.
Penny Nickel Composition Change Findings
Coin Modernization Act 2010 Reports 2012
Copper Penny Hoarders
Canada Eliminates the Penny
The Three Multi-Values of Pennies
How & Why to Invest in Copper Bullion
Invest in Copper Below Market Price
