Posts Tagged 'Nickels'
Cost to Make the Nickel 2012
| 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.
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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.
Since the The Coin Modernization, Oversight, and Continuity Act of 2010 calls for a research group to identify metal alloy composition changes for various expensive coins to mint, it is highly anticipated the penny and nickel will be made of steel to reduce mint production cost.
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.
Invest in Bulk Nickels
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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
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Nickel
1946-present
weighs 5 grams
75% copper, 25% nickel
3.75 grams copper
1.25 grams nickel
20 coins per $1
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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.
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How to Beat Inflation with Pennies and Nickels
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.
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Copper 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
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Nickels
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Copper Penny
1909-1982
weighs 3.11 grams
95% copper, 5% zinc
2.9545 grams copper
0.1555 grams zinc
100 coins per $1
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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
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Nickel
1946-present
weighs 5 grams
75% copper, 25% nickel
3.75 grams copper
1.25 grams nickel
20 coins per $1
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$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
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$1 Copper Pennies
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75 grams copper |
295.45 grams copper |
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25 grams nickel |
15.55 grams zinc |
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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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