1909 VDB Lincoln Wheat Penny
So after a good days work sorting pennies, pennies always end up on the floor everywhere. It’s a natural hazard of the business.
Normally, picking them up one by one would be mind boggling painful so usually we use a broom to sweep them up. After a long day of sorting today, we swept up this little treasure:
a 1909 VDB Lincoln wheat cent just laying there on the ground in fairly good condition. This is a great example of how easy it is to overlook and miss such a great coin without always keeping a trained eye out for value.
So next time you see a penny just laying on the ground, pick it up. You never know what you may just find!
Cost to Make the Penny
It’s official. The 2011 annual report from the United States Mint has been released. When discussing cost to mint a coin, one must look backwards in time at last year’s reported figures. So how much does it cost to make a penny in 2011? Here’s our updated chart modeling the cost of the penny since the year 2001:
Figures are in U.S. Cents Sourced from the U.S. Mint
2.41 cents. Every one cent made by the United States Mint costs 2.41 cents. The consensus is that this loss is 3x greater than the Fiscal Year for the mint in 2010. That’s three times the inefficiency, waste of money, and over-compensating minting of coins for circulation.
Penny Profitability
The loss the US Mint takes in producing the penny is mind boggling when contemplating how much turmoil goes on in Congress trying to reduce cost. Take a look at the loss taken by the Mint to make the United States penny in 2011 charted in a graph starting in the year 2000:
 Figures in U.S. Dollars Sourced from the U.S. Mint
United States Mint Annual Report 2011
Want to read the annual report? Here’s the link below. We recommend doing a “find search” for the word ‘penny’ to save time when reading. The actual figures printed for losses are on page 11. Our advice: Buy copper pennies now before pennies are exterminated and the price of copper pennies skyrockets when people realize they can’t get them in circulation anymore.
United States Mint 2011 Annual Report
What do you think about the penny? Should the United States Mint keep making the penny, change the composition of the metal of the coin, or discontinue the penny altogether? Leave a comment below with your thoughts.
|
How Much Copper is in a Penny
The amount of copper in a penny depends on the year the penny was made or minted. The most common pennies you will find are what are commonly called zinc pennies. These pennies are dated mid 1982 and newer and comprise of 97.5% zinc and 2.5% copper. Pennies dated mid 1982 and older are known as copper pennies and contain 95% copper and 5% zinc. Note that pennies dated 1909 to 1958 are known as wheat cents and may contain a very small amount of tin (less than 1%).
Copper pennies are worth more in metal value than their face value and are worth collecting in large amounts for investing.
|
Dimes and Silver Dimes in Penny Bags
Time and time again, we get very confused. Dimes in penny bags happens. A lot. Don’t get us wrong. We love it. After all, the newest record is officially:
3 nickels
241 dimes
1 silver dime
Yes. That’s right. A $50 penny bag had $24.10 in dimes and a silver dime. That sounds like a good rate of return on ones investment. Of course this does not happen often. But it’s something worth noting that it does happen quite often.
|
How to Make Money off of Copper Pennies
You can make money off of pennies. Specifically copper pennies. Many people think pennies are worthless, but the truth is, pennies have distinct advantages as an investment that are unique. Here are some topics on pennies and how to make money off of copper pennies. Feel welcome to skip to a specific section or read in order.
-
Understand Pennies
Copper in Pennies Weighs More than Face Value
-
| Pennies. Small, tiny little coins that appear worthless to the average person. Pennies are so under appreciated that they get tossed on the ground and people walk by without a second thought. A copper penny is worth more than its face value because of its copper metal content (a copper penny is made of 95% copper and 5% zinc). This means that the actual physical weight of each individual penny makes that penny worth a weight value in metal.
|  |
The metal value of copper for each penny makes the copper penny very valuable in large quantities. The U.S. isn’t the first country to have a coin become worth a lot due to their metal value. Many countries have eliminated their lowest cent value. How does money become so high in cost to produce? Inflation and massive printing of currency is just a start of the problem.
back to top
-
Devalued Dollar = Inflation = Valuable Pennies
-
|
Copper pennies really hold a great value. This is because the United States dollar is heavily devalued. In fact, the dollar is so devalued, most people do not realize how much less purchasing power the dollar has since its inception. Sure, we buy things. We sell things. It’s how trade works. We also import and export goods from an international |
perspective. But have you ever considered how inflation plays a role? Click the dollar devaluation chart on the left to enlarge it. This illustrates the purchasing power of the dollar since it’s inception in 1913. Yes, the dollar was around before that in various forms. 1913 was the year the Federal Reserve came into power, so that is a rather critical date to look at in terms of control of our money, as in control over the Dollar. Purchasing power is simply the amount of real tangible goods a dollar can buy.
The dollar is worth but a fraction of what it once was. A penny is 1/100th of the value of a dollar. If the dollar has become a fraction of what it once was, a penny is a fraction of the fraction. So to summarize the point: the price of the US dollars is going down, so the value of copper gets inflated. This is why the penny is worth a lot. Because the penny’s face value has become worth so little due to the devaluing of the dollar, that the weight in copper of the copper penny has become extremely valuable, that, and commodities in in huge demand. Particularly gold, silver, and copper.
That is one of the main points why copper pennies have become so valuable. Between commodity prices on the rise and the dollar on the fall, copper pennies have become very worthwhile. In fact, the worse inflation gets and more devalued the dollar becomes, the better the price outlook on copper pennies becomes.
back to top
-
Size Matters
-
 |
The more you have, the more the investment is worth. But what is considered a lot of pennies? Even ten pounds is a great way to start (pick up a sample of ten pounds of copper pennies).
Of course, ten pounds of copper pennies is more of a starter package of an investment. After all, |
|
you want to make serious money, and to make serious money, you’ll need to find the right portion of your financial portfolio to put in copper pennies. Even if you don’t have a financial portfolio, you can still begin to build up a copper penny investing stockpile. Something is better than nothing. Even if you buy $100 of copper pennies then that’s a |
|
great head start. Investing in $1,000 is an ideal way to start a financial portfolio diversification into copper pennies. Eventually, you can work to build a huge stockpile. Though the life expectancy of the penny continuing to be minted is anticipated to not last too long. So invest in copper pennies while you still have time to get a head start on everyone else that did not buy any copper pennies. Go at your own pace, at the amount that is right for you.
back to top
-
Acquire Pennies
Get Copper Pennies
-
This may seem silly, but if you want to make money off of copper pennies, you need to get copper pennies. Find pennies on the ground, sort for copper pennies yourself, or go the efficient route of buying copper pennies from us. If you want to make money from copper pennies, your best bet is to make sure you have them. Buy copper pennies and you are on your way to making money from copper penny investing.
Efficiency is king in the copper penny investing world. It’s a balance between time management:cost:happiness. You need to find the most cost efficient manner for you that balances the amount of time spent getting your copper pennies, the cost involved in getting the copper pennies (which includes the value of your time spent), and how happy you are with those figures. For every individual, this figure is different. Most people find it much more efficient and effective to simply buy copper pennies from us.
For those that prefer to sort their own copper pennies, we offer an intermediate solution. You can buy sealed penny bags directly from our website to your door. These are the exact same penny bags we get and sort for copper bullion from. The bank the penny bags come from may differ as our sourced coin comes from many different banks. This means you’ll have a larger encompassing reach to acquire pennies from as you’ll benefit from the wide variety of our coin sourcing. We send the penny bags to you sealed, unsorted and unsearched so you never know what goodies could be inside.
back to top
-
Hoard Pennies
Should I Hold onto Copper Pennies
-
| Yes. If you want to hedge against inflation. Commodities are a great way to make a profit while outpacing dollar value drops and rising inflationary trends. Gold and silver are expensive. Copper pennies are cheap. All three are commodities. So why pay extra for a commodity when you can invest in real |
|
commodities below copper price cost? Copper pennies are very durable tangible assets. They’re just as strong and recognizable as copper bullion bars, but backed by the United States currency and significantly cheaper copper to invest in. Even if your house burnt down, your hundred dollar bills would burn up, but the copper pennies would survive. Perhaps a little blackened, but the copper would be intact. Holding onto copper pennies is a great way to secure your wealth in commodities while maintaining a security against failed currencies.
The longer you hold onto your copper penny investment, the greater copper price should outpace inflation and the better your ROI (return on investment) will be. Copper spot price drives copper penny price, so holding onto copper pennies means you make money. Depending on how economic events unfold, there are other advantages to holding onto copper pennies to make money that most people do not think about. One such event is currency failure and hyperinflation.
back to top
-
Conquer with Pennies
Make Money off Failed Currencies
-
Failed currencies are not discussed to be scary, but rather investment facts to anticipate. In fact, anticipating economic disasters is a fact of necessity in the life of investing. As a prudent investor to secure ones wealth, one must prepare for possible outcomes. One currency in the news these days on the possibility of failure is the Euro.
 |
If the Euro collapses, that doesn’t mean anarchy and the complete collapse of society. It means that a new currency (or multiple) would be needed as a medium of exchange.
What is a medium of exchange? Simply a well recognized and accepted concept used to make trade easier (these days in the form of currency). In the past, objects ranging from gold, sticks, rocks, to even chocolate were used in various places throughout the world. Currency is used because it’s easy. After all, currency is just simply the ability to sell something of value to buy something of value while being easily transferable from person to person. This is the alternative to having a barter economy. And if the Euro could collapse, who is to say the U.S. dollar can’t collapse? |
| After all, the dollar is considered the world currency. This means that to trade in certain goods (like crude oil) countries must buy dollars rather than using their own currency. Therefore, there is enough dollars printed to be utilized not just by people of the United States, but countries throughout the world. That
|
|
means supply meets world demand for dollars. If the dollar is not used as a world currency, there would be world supply for dollars with only the demand of people in the United States plus those buying U.S. goods in terms of demand for dollars. This would create a huge imbalance between supply and demand. Basic economics would suggest the price of dollars would plummet. The demand for dollars would drop so suddenly, it could cause a huge devaluing spike in the value of the dollar, causing a potential attack by hyperinflation on our economy.
So if a currency collapses, your best investment is an investment that let’s you hold onto the value of your wealth when transferring from the old currency to the new currency. While everyone else is holding onto dollars which have their value destroyed through hyperinflation, you’ll be holding onto copper pennies, a commodity investment in copper. To create stability in an economy, a new currency will have to be distributed at a fair ratio to replace the old currency for holders of the old currency. If everyone else trades at a 1:1 ratio (old to new), then you want a 1:2 ratio (1 old to 2 new).
That means you’d double your wealth in comparison to everyone else. Will copper pennies do that? Answers currently point towards copper pennies definitely helping with a big Yes. Hyperinflation comes about from too much supply of currency (read coins can defeat hyperinflation). Therefore, a reduction in supply of the new currency would be important. So for example, you’d have a ratio more like 5:1 or even 20:1 (old currency face value to new currency face value). This would get prices under control. However, you’d have copper pennies, and instantly be able to sell the copper for the new currency at the well ratio’d cost of the old currency.
Hindsight is 20, 20. But having something useful to society is a great way to start. The key to wealth preservation is not always about making money. Sometimes it is as simple as not losing as much money as everyone else. After all, if you hold still, and everyone else loses money, you’ve gained wealth.
back to top
-
Capitalize on Pennies
When Should I sell my Copper Pennies
-
At the peak of an upswing economic market. When the economy gets tough, the tough should hoard their copper pennies. Copper is a very market economy-driven metal. In the long run, copper is a heavily demanded metal that pushes copper price above the devaluing of the dollar and inflationary effects on society. But when any economy is bearish, copper tends to be bearish (read how copper pennies and copper nickels are two great investments to pick up during a bad economy).
So when the economy is in a slump, you should buy copper pennies because the copper penny investing cost will be lower. When the economy becomes bullish, copper prices tend to spike.
| Since copper pennies are essentially copper bullion as a copper investment (read how pennies make it easy to invest in copper), that means the price of investing in copper pennies rises with a rising copper price. This can be seen with just about any commodity, one example being when the price of crude oil rises, so does gas price to fill up your car. When gas prices are high, a buyer pays more. The catch is so does the gas company which has to refill the oil tanks.
|
|
For you, the catch with copper pennies as an investment is the other way around. You buy your copper pennies ahead of time in large investment quantities when copper prices are low and bearish (invest in bulk copper pennies). Then the easiest hard part: have patience. Wait for the dollar to continue to get devalued. Wait for the economy to pick up. Patience is difficult, but necessary. Once the economy bulls, copper bulls, and you can sell whenever you wish (read about keeping copper pennies to survive a hyperinflation economy).
back to top
Do you invest in copper pennies? How do you plan on making money off of copper pennies?
Share your ideas & thoughts below by leaving a comment.
|
Dimes in Penny Bags
Pennies come in penny bags. This may seem obvious. But did you know there are plenty of other things in penny bags too? Dimes are the biggest culprit. Nickels, quarters, and euro are common as well. Not to mention the couple times we found teller keys in the penny bags (whoops).
In sealed penny bags from a bank, the amount of dimes can be quite intriguing! In a quality control check today of one individual bag of pennies, there were 68 dimes, 3 quarters, 5 nickels, and 1 silver dime. That’s pretty good for one $50 bag of pennies.
***UPDATE***
01/25/2012:
Best record of dimes: 131 dimes, 1 silver dime, 4 quarters, and 1 nickel all in one penny bag!
***UPDATE***
Of course, not every penny bag will have dimes. Though from our experience, quite a lot of them do. Some may ask, “Why do penny bags have dimes in them?” I’d advise the best solution is to look for yourself. Go grab a dime and a penny. Put them directly on top of each other. Notice the very similar circumference? A lot of coin counting machines accidentally throw those dimes right in there with the pennies. Unfortunately for the customer of the coin counter, their dime gets counted as a penny, creating a nine cent loss. And though that’s a whole different issue, it answers why dimes end up in those penny bags for you and us to find.
Want to get sealed and unsearched penny bags from our bank that could contain dimes and other rare coins? Of course we can’t guarantee what you’ll find. After all, they are unsearched and sealed penny bags. But we can vouch for having found great coins in the past, and fully expect to continue to find even better coins. It’s all about luck and numbers. How’s your luck lately? Want to give it a try? Buy sealed penny bags today.
|
2 Cheap ways to invest during a bad economy
Low Risk Investment
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.
Invest cheap. Invest smart. How to make money off of copper pennies.
|
How to Invest in Copper
Copper is a metal. Though this may be obvious, it is important to start with that fact. The key to investing in a metal has three main factors: Quality, Recognition, and Price.
Copper Quality
Like all metals, copper has a purity element to it. When pulling metal materials out of the ground, there is always a chance from the excavation of copper, transport, processing, and manufacturing into a final product that there will be loss in the purity of the copper. What this means is that something being stated to be copper may not be 100% copper, and therefore how much of the item is actually copper may not be known without extensive testing. Quality is important. The most well known example is gold. Gold has different degrees of purity, just like any metal. The higher quality and pure the gold, the more expensive the gold is. The same is true of silver, copper, and other metals.
One would assume that means having a 100% copper item is best when investing in copper. Technically, this is true. But that also means your copper investment will have the highest possible initial investment cost to invest in pure copper. Copper pennies (made of 95% copper and 5% zinc) have a very high copper content. Being made by the U.S. mint, a copper penny investor knows all of their copper pennies are 95% copper, therefore eliminating any doubt or question as to the purity of their copper investment. The main point of copper quality is to know what the copper quality of what your copper investment is made of. This leads to the second main factor: Recognition.
Copper Recognition
Recognition of ones investment is crucial. Not only so the investor knows what they are buying, but when the investor is ready to sell, the investor’s copper item is easily distinguishable as copper (and the purity of that copper). That’s a bit of a loaded sentence, but it is an important factor. If you’re handed a copper colored metal ball and told its copper, how do you know? What proof is there and do you have the time, knowledge, and money to test its purity? Most buyers won’t waste their time, going instead for the easily |
 |
recognized item as copper. This is where copper pennies have a distinct advantage. U.S. copper pennies are, in fact, pennies. They look like pennies, and being made of copper, maintain their imprints to keep them recognizable (such as the Lincoln face on the front of the copper penny and the year to know the date the coin was minted). Unlike copper bullion tokens or other copper investment items, copper pennies are known to be 95% pure copper, and through their recognition, make them already set up perfectly to sell when an investor is ready to do so.
Copper Price
Pennies cannot be melted down as it is currently illegal to do so (read about Copper Penny Laws). This is the best news possible for any copper penny investor. As peculiar as that may sound, investing in the metal value of the copper penny means you cannot quite access the copper portion of your investment quite yet. Therefore, copper penny sellers have been generally known to sell copper pennies for under copper spot price. This means that not only is the copper penny of known copper quality and easily recognized as a copper penny, but also a copper investor buyer can buy copper pennies cheap.
One of the most common questions asked about copper pennies is whether a copper investor should wait until it is legal to melt pennies. Though ultimately this is up to the individual investor, the answer is clearly no. Wait for the laws to change (read about current legislation in Congress to Change the Pennies to Steel) to allow pennies to be melted and the price of copper pennies will sky rocket. Not only should the copper pennies sell properly around copper spot price, but may even exceed copper price. Why? Because the copper penny will always be worth at least one cent, making it not only an ideal copper investment, but also backed by the U.S. currency.
How to invest in copper is up to the investor (read How to Make Money off of Copper Pennies). And as an investor, proper research should always be conducted. Start off by reading the FAQ on this site to get a run down on the basics of copper pennies.
|
Ebay and Copper Pennies
Ebay
You can buy copper pennies on Ebay. There’s loads of sellers and tons of copper pennies on Ebay which you can chose from. In fact, there is so much for sale on Ebay, you could spend hours sorting through the different auctions to find the right purchase for you. But how to find the right seller and the best price? Will you get copper pennies or will there be poor sorting and many zinc pennies? Will they box the pennies properly and put the pennies in proper coin bags or just dump loose pennies in the box? Does that seller properly reinforce the box so it doesn’t break in transit? These are just some questions that come up when buying copper pennies on Ebay.
Ebay and Ebay Fees
Ebay fees exist. Buyers do not really see them, but sellers do. And the fact is that sellers will incorporate those fees when pricing products on Ebay. Ebay fees can easily get expensive (see Ebay Fees for Ebay Stores). This means prices are higher on Ebay than off Ebay. So why do people sell on Ebay? Because it is an easy way to reach buyers that don’t know where else to buy what they are looking for. The fact is, there are buyers on Ebay, which attracts sellers. In fact, we sell copper pennies on Ebay with the exact hopes that we can attract those buyers to leave Ebay to get higher quality copper penny investments at lower pricing. Buyers are willing to pay more, so sellers are willing to sell for more. Stop the nonsense. Buy copper pennies cheap.
Ebay and Quality Copper Pennies
Not all copper pennies are copper pennies. That may sound like a loaded statement, but the fact is that when you buy copper pennies from random sellers, you risk getting poorly sorted coins. That means poor sorting devices that may not properly sort out all non-copper pennies. In addition, how does that seller weigh your pennies? Have they invested in a coin counter or professionally and highly accurate scale? These statements and questions are not to insult any particular seller or insult Ebay. It’s just a fact of life that not all sellers and stores are equal. Some have greater quality, and some not so much.
You could just hope you get the right product and use Ebay’s buyer protection program to argue if you don’t get what you want. Whether the risks stated here (and other risks not stated here) are worth while or not is up to you. We sell copper pennies cheaper than Ebay prices and assure you that when you buy copper pennies, you get copper pennies. Sure, auctions on Ebay can have random results. This means you could, in theory, get a better price. But instead of spending your time stalking Ebay, bidding, and hoping you get a good deal, you could just get a great deal right now, from us, today. After all, great pricing for the best quality is well worth paying for when it comes to investments.
Conclusions:
So if you want to buy copper pennies on Ebay, go right ahead. But consider the problems that can and do occur. When all is said and done, you can buy bulk copper pennies here and get better quality both in product, shipping, and service. On Ebay, you’re just a number and a bidder. With us, you’re you. If you’re happy, we’re happy. We’re only in business when you’re happy and invested well in copper pennies. You know what you’re getting. And isn’t knowing that you’re going to get exactly what you paid for a rather critical part of any investment? Let us make your investing goals of making money a reality (read How to Make Money off of Copper Pennies). Buy Copper Pennies today.
|
Sealed Penny Boxes Versus Sealed Penny Bags
Investing in $25 penny boxes
Pennies are fun. The copper ones from 1982 and pre 1982 are worth more than their face value (copper pennies are 95% copper and 5% zinc). This makes the copper penny worth more than twice its face value due to its metal value (and expected to become three times more valuable than its face value in the near future).
There’s tons of great rare penny finds such as misprinted, double-died pennies, error marks, rare penny mint vintages, and more. You can buy $25 penny boxes directly from your bank branch. There are 50 penny rolls in that box, containing 50 cents each. Depending on where you live, the copper penny content may vary greatly compared to the zinc penny content (zinc pennies newer than 1982 are 97.5% zinc and 2.5% copper). Cracking open penny rolls can take a toll on your wrists, so do so with care and caution. Or more to the point, which makes more sense: Getting sealed penny boxes or sealed penny bags?
You may have to open a commercial account and potentially pay fees due to the nature of picking up large volumes of pennies from your bank. Many tellers will provide you with boxed pennies for free, but only when available or they have extra penny boxes. It never hurts to simply ask your teller for a box of pennies now and then. This is the cheapest way to get pennies (if you can get them free from the bank), though definitely not that most advantageous and time efficient way. And even though the pennies are free, your time is not, nor is gas money. So free is a relative term.
Penny Boxes versus penny bags
When hoarding copper pennies (collecting copper pennies in bulk) one needs to consider time management as a critical factor. Buying $100 in penny boxes from a bank means 200 rolls of pennies to open. Buying $1000 in penny boxes from a bank means 2000 penny rolls to open. How long does it take you to open a roll? Are you doing irreversible damage to your wrists? What could you be doing instead of opening rolls? This is why sealed penny bags are much more advantageous. No penny rolls, just penny sorting. Time is the critical factor here.
The fact of investing is doing the math. After all, copper pennies are investing in copper and finding rare pennies is also an investment. Investments require mathematical calculations to determine their validness. Here’s an example to determine whether you should buy penny boxes from the bank or buy sealed pennies from us:
Take the total number of pennies you want to buy for the week, month, or whatever appropriate time period that works for you. Now conservatively calculate how much time it takes you to acquire those pennies from your bank. If you don’t spend any extra time (meaning you only pick up pennies when you are already going to the bank) then this part may equal zero (the only factor then becomes if you don’t get pennies as quickly as you’d like. If you want pennies faster than you do now, you may need to incorporate that into this math equation as well). So this would mathematically look like:
X = Total time to get pennies
Now time yourself on how long it takes you to open those penny rolls. This includes however long you take breaks while opening rolls whether getting food, giving downtime for your wrists, toilet breaks, etc. Now the math looks like:
X = Total time to get pennies + Time to open all penny rolls
The next factor is harder to judge: Energy1 and Energy2. Energy1 is how much energy did you use picking up boxes lugging them around (aka how tired does that make you). This is a difficult factor to determine, so make your best guess. It is advised to determine this in the amount of rest time you need after engaging in the activity of picking up the pennies. Energy2 is how much energy do you have left after getting your pennies and opening all of the rolls? Is the rest of your day impacted? Are you able to now do your sorting or have you lost a considerable amount of time because you’ve used up all your energy just picking up and opening penny rolls? One most popular way to calculate Energy2 is that Energy2 = amount of rest time needed prior to getting more pennies, opening more rolls, or sorting pennies. The final equation then looks like:
X = Total time to get pennies + Time to open all penny rolls + Energy1 + Energy2
Opportunity Cost
So what does X equal? Now we can determine your opportunity cost. Opportunity cost is the value of best alternative choice in multiple choices when making a decision. We use opportunity cost all day long and never necessarily think about it in terms of breaking down value of choices. Time is valued in terms of money differently for every individual person. This helps make decisions on whether you should continue to pick up penny boxes or buy penny bags from us. Even if you can manage to pick up penny bags from banks, you still have to drive around, which has cost in money, time, and wear on your car. So which is effectively cheaper when weighing the different factors? Only you can decide.
Conclusions:
Do what makes sense for you and only you. If picking up pennies works for you, do it. If you have the energy to drive around picking up penny boxes or connections to get penny bags from your bank and that works for you, great! If not, consider alternatives. Teamwork is always a great thing and that’s what we strive to do. We want to team up with you to provide you the sealed pennies in bags you need. But only if you want the team effort to work for you. Our recommendation is to do the calculation on opportunity cost every now and then for yourself.
|
|
Add whatever other factors in your life to the equation that may pertain to you that we aren’t aware of. And remember, this is an investment. If the maths hows you should pick up locally, do it. If the math shows you should order sealed penny bags from us, do it. After all, maximizing investment return on pennies (read How to Make Money off of Copper Pennies) is the most important factor third to happiness and your health.
|
|
|
Newsletter
Receive free updates via email when there is a new article by entering your email address:
|
