wharghoul
Full Member
I've been hitting the halves and dimes pretty hard for about 3 years now and I've had a great time doing it. I've enjoyed the ride so much that I haven't really given a lot of thought about the best long term savings strategy. In my mind, it's always been a foregone conclusion that I'll just keep them until I retire and hopefully sell at $50, 100, or more per ounce.
With the silver prices going up, the last few months have been a little more difficult in regards to accumulated halves (all the new competition) and I been giving other options some serious thought.
So, while dabbling in copper cent hoarding for a while, I've never really given it the attention it deserves, until now.....
Here's my plan: Going to sell about 20-30% of my 40% junk silver and use the funds to order boxes of cents. I'll order the boxes, probably in $200 increments, pull the copper, dump the zinc, repeat process until I've converted funds completely into copper.
For instance: Sell $100 face in 40%'s and fetch $750 (approx. melt @ $26/oz.). With the $750, order cents. By the time I've converted all $750 into copper, the melt value for the cents and my investment is now theoretically worth $1,966.
So, my initial investment of $100 turns into a hoard of copper cents around 495 lbs. Today, that $750 conversion would only be worth $850-890 (based on current sale price for rolls of copper on ebay). In the long term, that copper represents a value of around $1,572 (Current copper price of $3.90/lb x .80). The .80 represents the percentage return of what we'll likely get back from the smelters.
I based my example on selling $100 face in 40% silver. In reality, I would be selling much more. I'm saying this because one of the criticisms of hoarding copper is the overhead costs. Thus, the greater the investment, the lower the overhead cost per unit.
Although I think the Ryedale machine is a stroke of genius, I don't think I'll be buying one. I don't like the idea of how much time and effort it will take to make the return on investment. I've got plenty of time, think I'll just sort by hand, might pick up a few collectable coins while I'm at it.
Another quick example: Sell $1000 face of 40% silver = $7,200. Convert the $7,200 into copper, at todays melt it's around $16,000. Future melt of $0.10(per cent) would yield a return minus the spread of $0.08 per cent. That $7,200 would then be worth approx. $60,000.
Any thoughts
?
With the silver prices going up, the last few months have been a little more difficult in regards to accumulated halves (all the new competition) and I been giving other options some serious thought.
So, while dabbling in copper cent hoarding for a while, I've never really given it the attention it deserves, until now.....
Here's my plan: Going to sell about 20-30% of my 40% junk silver and use the funds to order boxes of cents. I'll order the boxes, probably in $200 increments, pull the copper, dump the zinc, repeat process until I've converted funds completely into copper.
For instance: Sell $100 face in 40%'s and fetch $750 (approx. melt @ $26/oz.). With the $750, order cents. By the time I've converted all $750 into copper, the melt value for the cents and my investment is now theoretically worth $1,966.
So, my initial investment of $100 turns into a hoard of copper cents around 495 lbs. Today, that $750 conversion would only be worth $850-890 (based on current sale price for rolls of copper on ebay). In the long term, that copper represents a value of around $1,572 (Current copper price of $3.90/lb x .80). The .80 represents the percentage return of what we'll likely get back from the smelters.
I based my example on selling $100 face in 40% silver. In reality, I would be selling much more. I'm saying this because one of the criticisms of hoarding copper is the overhead costs. Thus, the greater the investment, the lower the overhead cost per unit.
Although I think the Ryedale machine is a stroke of genius, I don't think I'll be buying one. I don't like the idea of how much time and effort it will take to make the return on investment. I've got plenty of time, think I'll just sort by hand, might pick up a few collectable coins while I'm at it.
Another quick example: Sell $1000 face of 40% silver = $7,200. Convert the $7,200 into copper, at todays melt it's around $16,000. Future melt of $0.10(per cent) would yield a return minus the spread of $0.08 per cent. That $7,200 would then be worth approx. $60,000.
Any thoughts
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