After reading the various penny posts over the last few days, I've been mulling the idea of building a decent size copper position.
Here's my reasoning:
Each box of pennies I've CRHed has had about 20% copper (I have 1 copper box after 5 CRHed), which is roughly $5 in face, with a melt value of $11.75, leaving an unrecognized profit of $6.75 per box. I don't have tons of time to devote to CRH, so I've been concentrating on dimes to build a silver collection. So far, after 5 boxes, I've pulled approx. 2 dimes per box, worth roughly $4 total in melt, and about as much in unrecognized profit. It really seems like the best value, from a pure long-term profit standpoint, is pennies.
And therein lies the rub: realizing the profit of sorting the copper. The US would have to abolish the penny, or at least make it legal to melt them. Or I would have to make friends with an unscrupulous scrap dealer. Copper also ties up more in funds. As mine are limited, this is not inconsequential. $20 in dimes ties up $1 in face. $20 in pennies ties up $8+ in face. That can add up quick, especially with as easily as copper can be sorted. If I had a buyer, I could just as easily sort and sell the copper, and buy silver with it, which would yield more than if I just CRHed silver. But I don't have a buyer.
Thoughts? Are there other things I'm not taking into consideration? I'm still going to CRH for wheaties and funny money; but I'm trying to decide weather I should put most of my energy into dimes, or into pennies. Both take roughly the same amount of time for me to sort, which I do in my limited spare time (when class is in session). Any input is appreciated. I'm still trying to figure all this stuff out.
Here's my reasoning:
Each box of pennies I've CRHed has had about 20% copper (I have 1 copper box after 5 CRHed), which is roughly $5 in face, with a melt value of $11.75, leaving an unrecognized profit of $6.75 per box. I don't have tons of time to devote to CRH, so I've been concentrating on dimes to build a silver collection. So far, after 5 boxes, I've pulled approx. 2 dimes per box, worth roughly $4 total in melt, and about as much in unrecognized profit. It really seems like the best value, from a pure long-term profit standpoint, is pennies.
And therein lies the rub: realizing the profit of sorting the copper. The US would have to abolish the penny, or at least make it legal to melt them. Or I would have to make friends with an unscrupulous scrap dealer. Copper also ties up more in funds. As mine are limited, this is not inconsequential. $20 in dimes ties up $1 in face. $20 in pennies ties up $8+ in face. That can add up quick, especially with as easily as copper can be sorted. If I had a buyer, I could just as easily sort and sell the copper, and buy silver with it, which would yield more than if I just CRHed silver. But I don't have a buyer.
Thoughts? Are there other things I'm not taking into consideration? I'm still going to CRH for wheaties and funny money; but I'm trying to decide weather I should put most of my energy into dimes, or into pennies. Both take roughly the same amount of time for me to sort, which I do in my limited spare time (when class is in session). Any input is appreciated. I'm still trying to figure all this stuff out.
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