Posts Tagged 'inflation'

The Three Multi-Values of Pennies

The Three Multi-Values of Pennies


 

 
 
 
 

copper penny


 
 
 

Intrinsic Value

 

Currency Value

 

Numismatic (Collector) Value

Intrinsic Value

 

All forms of currencies have intrinsic value. This means the actual physical monetary value of the item itself. A penny is made of metal. Therefore, it has metal value based on the metal content. For example, a copper penny is made of 95% copper 5% zinc and weighs approximately 3.11 grams.

This means a copper penny holds 2.9545 grams of copper and 0.1555 grams of zinc. Of course, wear and tear as well as various anomalies can change this figure. But the point to make is that this is a physical tangible value associated with the penny.
 
 

Currency Value

 

A penny also holds a currency value. This value is one-cent or 0.01 of a dollar. The purpose of this value is its trade value and use in a marketplace as a medium of exchange in place of a barter economy. A currency value is very subjective in a global marketplace when incorporating exchange rates and other factors.

Pile of Copper Penny Bags It is good to note that currencies like the dollar are heavily devalued due to mass printings of more money into the money system. This means the intrinsic value bolsters compared to the currency value from the impact of inflation.
 
 

Numismatic (Collector) Value

Finally, a penny holds coin collector numismatic value. This often has to do with rarities of coins, makes, quantity of units produced, models, years, various errors, and other factors.

 
 

Penny Value Conclusions

 

What’s the point? Simple. You can convert these three value terms into three different values:

  • Intrinsic = Investment Value

  • Currency = Back up Value

  • Numismatic (Collector) = Supply & Demand Value

     
     

    Metals are useful to society, and have a historic proof of keeping up with inflation at a minimum, often outpacing inflation. What does this mean? Your pennies are devaluing from inflation because of their face value but increasing in value because their metal value is not decreasing with inflation. While everyone else keeps their money in the digital world of banking, you are holding physical value that is increasing at a faster pace than money sitting in a zero percent-to-low-percent interest bank account.

    Worst case scenario, you still have currency value to fall back on as a back up plan. If the metal value breaks historical statistics and turns the other way around, you still have a currency value, proving that unlike a bet in the stock market, your pennies won’t reach a value of zero.

    Finally, pennies will be eliminated from circulation at some point. Every country has done it but the United States. Therefore, once it happens, the total quantity of pennies in circulation will drastically be reduced. Demand, however, for coin collectors will almost certainly stay the same. As a result: Supply drops. Demand holds steady. Value goes up.

    That sums up the three multi-values of the pennies. Thoughts? Feel welcome to leave a comment below.

  • How to Make Money off of Copper Pennies

    How to Make Money off of Copper Pennies


     

    You can make money off of pennies. Specifically copper pennies. This is because the copper penny (made of 95% copper and 5% zinc) is worth over 2x in its metal value than its face value.

    Many people don’t think about the penny, but the truth is, pennies have distinct advantages as an investment that are unique to themselves. There are many articles written on this site about copper pennies, copper nickels, copper in general, and more.

    If you aren’t sure about pricing, it may be very advantageous to search copper penny auctions and pricings via Ebay. Here is a link to a handy website which will open a new window in your browser:
     
     

    Ebay Copper Penny Auctions

     
     

    Now that you have an idea of pricing possibilities, here is how to make money off of copper pennies:

     
     
     
     

    copper penny
     
     
    Pile of Copper Penny Bags



     
     

    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.

    10 pounds copper pennies

    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.

     
     

     

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    Devalued Dollar = Inflation = Valuable Pennies

     

    dollar devaluation 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.

    In short: Think Quantitative Easing (QE1, QE2, “The Twist” & now QE3 AKA Quantitative Infinite)

     
     

     

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    Size Matters

     

    $1000 of Copper Pennies 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.

    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
     
    Large Amount of Pennies

    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.

     
     

     

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    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.

    The real key to reiterate and focus on is time. Your time is valuable. Everyone is different and you must make sure you are maximizing your return for your time in how you value your time. No one else can determine this but we do offer an article below to assist with helping you monetize time.

    Read more: Guide: Copper Penny Sorting versus Copper Penny Buying
     
     

     

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    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

    copper pennies bags

    commodities below copper price cost? Copper pennies are very durable tangible assets. They’re just as strong and recognizable as .999 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.

    You can invest in .999 pure copper bars or .999 copper scrap for short term copper holdings as an industrial commercial grade base metal. Great for the short run usually holds higher premiums. Medium to long-term holdings generally have much lower premiums, thus the price difference between forms of copper in addition to purity.

    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 (read more: Copper Penny Hoarders).

     
     

     

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    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.

    money 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
    map of the world

    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.
     
     

     

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    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).

    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, 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.

    stacks of bags of Copper Pennies

    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. 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 How & Why to Invest in Copper Bullion).

     
     

     

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    Your Help is Needed



    What information is missing from this article that you would like to know more about? Contact us with any questions you have and if we can, we will feature your question in a new article!



     
     

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    How to Beat Inflation with Pennies and Nickels

    How to Beat Inflation with Pennies and Nickels


     


    nickels 680 pounds copper pennies


     
     

    Inflation and time. What if you knew what you could invest in cheaply today that would be 2000% more valuable in 10, 20, 50 years from now? Unfortunately we don’t have a time machine or psychic powers, so we’ll have to work with a logical working knowledge of history. After all, the old adage is that history repeats itself.

    Let’s first look at history.

     
     

    Inflation and Silver

     

    Remember when U.S. coins were made of silver? If you don’t, you may do well to ask someone who is old enough to remember the 1960s quite well. After all, in 1964, you could have paid ten cents to buy a dime. That dime was made of 90% silver. Today, on January 7th, 2012, that silver dime is worth $2.07 in silver metal. $2.07 may not seem like a lot of money at first, but that silver metal value over its face value means the silver dime is worth 2070% of its face value. The key here is to think big. Picking up $1,000 face value coin bag of dimes in the early 1960s would equate to 10,000 individual silver dimes each worth $2.07 based on today’s silver price. This means there would be a total silver metal value of $20,700 for a one-time trip to pick up some coin and doing no additional work. Inflation has a funny way of making little value items become huge value investments.

    Now let’s look at today.
     
     

    Save Your Nickels

     

    Copper price is quite an intriguing metal to graph. Today, a nickel is worth approximately 103% of its value, about .05174 cents per .05 cent (a nickel is made of 75% copper and 25% nickel). That doesn’t make nickels look so great, now does it? Yet if we were having this same discussion a year ago about nickels in February 2011, that same five cent nickel would be worth about 7.3 cents or over 140% of its value value.

    Copper has a habit of exaggerated pricing drops during economic bear markets and extreme booms during bull markets. However, over time, one can see the heavily increased demand for copper and rising copper price. Even the U.S. government recognizes the rising costs of copper because legislation has been introduced to Congress to change the metal composition of the nickel to steel. Proof of nickel value is right in front of our eyes.

     
     

    Save Your Pennies

     

    Just as described in saving nickels, you can save your pennies too. The catch is not all pennies are valuable. Only the 1982 copper pennies and pre-1982 copper pennies have the distinct advantage of copper pricing benefits of the commodity industry (copper pennies are 95% copper and 5% zinc). The newer pennies are made of zinc (zinc pennies are 97.5% zinc and 2.5% copper), which hasn’t quite risen in metal demand or inflationary price rising to offset the face value. If you want the cheapest investment possible with lowest risk, buy nickels. If you want to get a bigger bang for your buck, so to speak, copper pennies are the way to go. Their floor face value is five times less than the nickel, but their copper metal value is significantly higher when compared to nickels (read about pennies versus nickels).

     
     

    Inflation Investments

     

    Be safe with investments. Your investment needs to not only make you money, but outpace inflation. Sticking to facts makes the most sense by using coins to make the most cents. This may sound corny, but the truth is that commodities that are useful in society have the greatest inflation curbing effects. The more the metal is used, the greater the demand and higher the price. If you keep an investment as something physical and useful, you have a real asset that holds value. And that’s a truth that we can all share and prosper from.

    Want to learn more? Browse this site. Feel welcome to start with pennies or nickels.

    Inflation

    inflation


     

    “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens”

    - John Maynard Keynes

    What is Inflation

     

    Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service. The value of a dollar does not stay constant when there is inflation. The chart on the right (click the image to enlarge it) shows what the U.S. dollar valued from 1913 to 2009. The value progressing over time is a comparison of the value of the U.S.

     
     
     

    dollar worth compared to its original $1 worth in 1913. Meaning, as time progresses, the dollar is worth less. The dollar is observed in terms of purchasing power, which is the real, tangible goods that money can buy. When inflation goes up, there is a decline in the purchasing power of money. For example, if the inflation rate is 5% annually, then theoretically a $1 pack of gum will cost $1.05 in a year. After inflation, your dollar can’t buy the same goods it could beforehand. Why start at 1913? Simple. This is the year the private central bank known as the Federal Reserve took over the power of the money supply in the United States.
     
     
     

    What is deflation

     

    Deflation is a general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression. Central Banks attempt to stop severe deflation, along with severe inflation, in an attempt to keep the excessive drop in prices to a minimum.
     
     
     

    What is hyperinflation

     

    Hyperinflation is extremely rapid or ‘out of control’ inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.

    When associated with depressions, hyperinflation often occurs when there is a large increase in the money supply not supported by gross domestic product (GDP) growth, resulting in an imbalance in the supply and demand for the money. Left unchecked, this causes prices to increase as the currency loses its value.

    When associated with wars, hyperinflation often occurs when there is a loss of confidence in a currency’s ability to maintain its value in the aftermath. Because of this, sellers demand a risk premium to accept the currency, and they do this by raising their prices.

    One of the most famous examples of hyperinflation occurred in Germany between January 1922 and November 1923. By some estimates, the average price level increased by a factor of 20 billion marks, doubling every 28 hours. Click the chart to the right to enlarge it to see more details and gain greater perspective on how severe these numbers truly are.
     
     
     

    What is stagflation

     

    Stagflation is a condition of slow economic growth and relatively high unemployment, accompanied by a rise in prices, or inflation. This happened to a great extent during the 1970s, when world oil prices rose dramatically, fueling sharp inflation in developed countries. For these countries, including the U.S., stagnation increased the inflationary effects.
     
     

    To read the chart on the left and understand what the information means to the U.S. and world economy, you must first define what is being graphed. Click the chart to enlarge it.

    M1 = cash and checking and deposits available in the U.S. economy

    M2 = M1+ savings accounts and money market accounts that are small deposits (less than 100K)

    M3 = M2 + large deposits and other large long-term deposits, such as CD’s (Certified Deposits)

    Based on the chart above, you can see the collapse of the money supply in in the money system of the late 2009 due to the banking crisis. The money supply continued to fall until the bailouts of the major banks and insurance companies. Along with the institution of Quantitative Easing, which monetized government debt, injecting liquidity into the economy. The chart above shows M3 intersecting M1 and M2 downward, showing a large contraction in lending, stifling the money multiplying effect of Fractional Reserve Banking. M1 is on pace to reach pre-recession (depression) levels by year end, aided by the massive liquidity injection by the Federal Reserve Banking System and the U.S. Treasury.
     
     
     

    The Federal Reserve

     

     
    The Federal Reserve‘s action are simple; to inject enough cash into the system to prevent deflation. Take a look at the chart to the right (click the image to enlarge) at some of the fiscal policies like ‘the bank bailouts’ and its effects on inflation. Deflation is a dirty word in economies that rely on Central Banks and Fraction Reserve Banking. Because our economy uses Factional Reserve Banking, it insures that
     
    the debt that is owed is always more than the money in existence. Therefore, you must have inflation of the money supply to pay the debt that is owed and the interest that is due.

    The bad news is, it seems we have both! We are in a situation in which M1 is growing rapidly (around 13% yr/yr), while M3 is not surpassing 3% year per year. Prices of commodities have rapidly increased since the bailout policies, while wages seem to be falling. This seems to fit the description of stagflation which we last encountered in the 1970’s and the subsequent high inflation of the 1980’s. If the age old adage, “history repeats itself” continues to be true, then it is prudent to prepare for potential high inflation rates in the near future.

    So what can you do? Protect your money. Whether keeping your money in currencies in the bank or at home, you are still at risk from the affects of inflation. The key solution is to look for trends in the market that money can be secured into that outpace inflation. Ideally, supply and demand principles are the most basic elements. Copper pennies are ideal as not only are you protected by the booms of the copper industry in bull markets, yet also reinforced by the fact there is a limited supply of copper pennies in existence. Copper pennies aren’t made any more, and as more are bought and pulled out of circulation, supply will decrease. At the same time, copper price must rise, even if due to inflation alone, causing more demand for copper, bringing an increase in demand. Reduced supply and increased demand means a trending higher price. This is but one example out there. Well-thought out researched logic is the key to beating inflation. As long as you stay within the confines of the money system and money supply, you will find yourself under attack from the inflation games of the Federal Reserve. How do you beat this game? Don’t play it. Hold onto something real that you can control, and beyond the reach of the Federal Reserve.

    Buy Copper Pennies Today


     
    When Hyperinflation occurs, a currency holds no value and loses buying power.

     

     

     
     


     
    When a currency becomes valueless and people can no longer afford to buy things, people seek out a useful & tradable real asset.

     

     

     
     


     
    Physical Commodities are a safe investment to protect yourself from the dangers of Hyperinflation

     
    Source

     

    Wheat Cents Unsearched

    Wheat Cents Unsearched

    Search through unsearched wheat cents to find rare coins. Test your luck with our wheat pennies sourced across the entire country today!

    Read More: Unsearched Wheat Cents

    Copper Nickel Investing

    copper nickels investing

    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.

    Read more: Copper Nickel Investing

    .999 COPPER BAR / .999 SCRAP INVESTING

    pure copper scrap .999 copper bars

    Industrial-grade pure copper provides traditional short-term, physical assets copper holdings. Invest in .999 pure copper bars or .999 copper scrap for commodity diversification.

    Read More: Copper Bar Investing | .999 Copper Scrap


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