Immy
Silver Member
...in this week's Coin World. First one is titled No one buying copper cents to melt
- "Does anyone want to buy your hoard of copper Lincoln cents yet? Despite the currently record-high prices of copper, more than twice its price a year ago, the possibility of the copper industry buying cents as scrap metal does not seem likely in the near future.
Janice L. Jolly, a copper industry consultant, said in a January 2005 research analysis for the Copper Development Association Inc. (CDA) that the United States lacks a basic domestic infrastructure for processing secondary materials such as copper.
Ken Jeremiah of the CDA told Coin World that the value of 1-cent coins redeemable as scrap metal would primarily be determined at the discretion of scrap dealers. The quantity of coins at hand would also be an important factor in whether the dealer would accept a collection of coins. 'Those thinking of cashing in the jar of pennies on their shelf would be better off keeping [them for their] collector value' Jeremiah said."
Another article in the same issue talks about the Mint's cost of producing pennies.
"...lots of people are beginning to ask how long the current cent will be produced. For example, the New York Times reported April 22 that the cost of metals in the current cent is more than 0.8 of a cent and that it costs the US Mint another 0.6 of a cent to produce each coin, suggesting it would cost the Mint 1.4 cents for each new coin it strikes.
While the Times' calculation of the current cost of metals was accurate on April 22, it is somewhat misleading. The flaw in such reporting is that the US Mint purchases fabricated 1-cent planchets [coin blanks] from Jarden Zinc Products, Greenville, Tenn., under a contract at a set price for the life of the contract. Thus, the Mint's cost of production does not vary with the daily spot prices of the metals. However, higher base metals prices will eventually show up on the bottom line when new contracts are negotiated."
The Mint won't say when their current contract ends with Jarden Zinc Products.
- "Does anyone want to buy your hoard of copper Lincoln cents yet? Despite the currently record-high prices of copper, more than twice its price a year ago, the possibility of the copper industry buying cents as scrap metal does not seem likely in the near future.
Janice L. Jolly, a copper industry consultant, said in a January 2005 research analysis for the Copper Development Association Inc. (CDA) that the United States lacks a basic domestic infrastructure for processing secondary materials such as copper.
Ken Jeremiah of the CDA told Coin World that the value of 1-cent coins redeemable as scrap metal would primarily be determined at the discretion of scrap dealers. The quantity of coins at hand would also be an important factor in whether the dealer would accept a collection of coins. 'Those thinking of cashing in the jar of pennies on their shelf would be better off keeping [them for their] collector value' Jeremiah said."
Another article in the same issue talks about the Mint's cost of producing pennies.
"...lots of people are beginning to ask how long the current cent will be produced. For example, the New York Times reported April 22 that the cost of metals in the current cent is more than 0.8 of a cent and that it costs the US Mint another 0.6 of a cent to produce each coin, suggesting it would cost the Mint 1.4 cents for each new coin it strikes.
While the Times' calculation of the current cost of metals was accurate on April 22, it is somewhat misleading. The flaw in such reporting is that the US Mint purchases fabricated 1-cent planchets [coin blanks] from Jarden Zinc Products, Greenville, Tenn., under a contract at a set price for the life of the contract. Thus, the Mint's cost of production does not vary with the daily spot prices of the metals. However, higher base metals prices will eventually show up on the bottom line when new contracts are negotiated."
The Mint won't say when their current contract ends with Jarden Zinc Products.
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