Tuesday, 19 January 2010

How to invest in copper


How to invest in copper
One overlooked but potentially profitable means of using inflation to your advantage is to consider copper as a form of bullion. At the current price of copper, the old adage "a penny saved is a penny earned," is no longer accurate. Copper pennies are worth more than that. How much more? You'd be surprised! While not everyone has the funds to invest in silver and gold, an affordable means of protecting your purchasing power and potentially profiting from inflation exists.

Begin to acquire copper "bullion". You may not know it, but you've already begun. There's a lot of that bullion - in the form of circulating copper pennies - to be found. In some areas of the country, upon examination, as many as one in three pennies will be worth saving.

Check the date. Until 1981, pennies were made of 95% copper and 5% zinc, hereinafter referred to as copper.[citation needed] Beginning in 1982, the alloy used to produce pennies was altered to 97.5% zinc and 2.5% copper, hereinafter referred to as zinc, to offset increased fabrication costs to the United States Mint as base metal prices became costlier

Test the copper amount. Pennies exist in both bimetallic forms for that year and may be distinguished by weight; copper is heavier at 3.11 grams as opposed to zinc at 2.5 grams. As well, you can tell the difference by sound. Drop a 1982 penny on a hard surface and copper will produce a melodic timbre - a distinctive ring - as opposed to a dull thud if it is zinc.

Reach into your pocket and examine your change. Set aside those pennies made of copper. You might also have a piggy bank or a jar you've filled with a pile of loose coins. Save the copper; you can spend the zinc.

Stock up. When you finish your search at home, plan a visit to your local bank or credit union where you may purchase rolls of pennies other customers have brought in, or request to order a $25 box of pennies.

Keep an eye on the value. At the present price of copper, United States pennies minted before 1982 are worth close to two times face value. A highly informative website, Coinflation.com, updates the value daily of the metal intrinsic to all forms of United States coinage.

Enjoy your new hobby. You'll find that this venture may introduce you to what can become an engrossing and often fascinating new hobby, that of collecting and completing a full set of Lincoln pennies. If so, welcome to the hobby of numismatics.

Be realistic. While this means of investing in copper bullion is certainly feasible for everyone to participate in, your potential profit is limited by scale, and can only increase in magnitude if you have the means to accumulate a large stockpile of copper pennies.

Store it. If you have limited space to store your bullion or security is a problem, check out mint storage options online to learn about insured storage.

Consider the wealth that might have been generated if, in 1965, you had begun - as did others - to withdraw the 1964 and older 90% silver coins from circulation and merely saved them. Those same coins are now worth at least twelve times their face value. One could dream of having access to an invention conjured by H. G. Wells to revisit those days or, upon reflection, reach the conclusion that you already have such a time machine, as virtually the same opportunity afforded by silver in 1965 now exists with copper today.