Free Copper

I had an idea a while ago but let it pass. That is not uncommon for anyone to do, yet when it comes back stronger and wiser its time to listen and act on it.

My idea/plan came from thinking about the mid sixties, not my own experiences, but what was going on with the currency. I was trying to understand how after the silver standard was dropped, the disappearance of junk silver (90% pure, silver, U.S. coinage) in circulation was not instant, then followed by outrage and unrest. I still hear stories about my friends' grandparents silver coin hoards, but nothing more. I guess some people were paying attention at that time. That was an opportunity I am sure everyone else would love to go back to because it was so easy.

That led me to think of the gold standard getting dropped in the seventies. That was not as much a coinage issue as it was paper. I understand that more than a few people caught on this time around but it was not something that the general public had access to. Gold was not in everyones pocket to be sorted out this time. Only now are people catching on to what the government did in 1971.

My thoughts then drifted to the mint ditching the copper standard in 1982, which was not really a "standard" but it was one of the remaining metals of value still in circulation. I have to hand it to the powers that be, it was not until around early 2006 that a penny was truly worth a penny. That's 24 years after the switch to zinc and 42 years after the silver theft...er...switch. That's a lot of time for the masses to forget lessons learned from the past. These dates and facts I did not know until recently, when the thought came back to me to start hoarding copper pennies.

Anyone who had the awareness to trade cash for silver coins in the sixties was, at the time, making roughly an even trade. Hardly profitable, but wise, as it has been paying off for many years now. What about doing that with copper pennies? Anyone doing that from 1982 to about 2006 would have been making a negative trade, as in, they could get more copper for their dollar elsewhere.

It turns out that trading cash for pennies now, just like they did in the sixties with silver, yields an approximate 25% gain walking out the door of the bank. With some sweat equity you can realize 100% gains at current market price, by returning the zinc pennies. There is zero risk to hoarding copper pennies (other than inflation, which is rebutted, as copper can, and has been an inflation hedge, so back to zero risk) as it is still US currency. At current copper prices you get two pounds of copper for the price of one. That is how you get free copper, you just ask for it, at any bank.

I want to share with you how I do this. Keep in mind I have only been physically doing this for a couple of months and I know that I do not have all of the details worked out. If anyone would care to share any ideas or techniques they would be greatly appreciated.

This is still just a hobby for me, not an obsession, so when I go to the bank for my cash each week I just ask for $10-20 dollars worth in pennies. The tellers were very curious at first so I told them that I like to sort through them with my daughter. I take them home and that's it. $10 in pennies is only about the size and weight of a brick so it is not that inconvenient to carry or store. If I have the time I like to sort thru them looking for wheaties and odd balls.

When I do sort by hand I make five piles. So far in this young quest, my odd balls include a 1907 indian head, two dimes, ~50 wheaties, one british looking coin, a OH and a MD stamped penny, and a few new Lincolns. That's after about 8,000 pennies by hand. My piles are:

- 1959-1981 (95% copper)
- 1983-present & 1997-present Canada pennies (97.5% zinc)
- 1942-1996 Canada pennies (copper)
- odd balls
- 1982 (this is the year the mint switched to zinc so I will weigh them later to sort the copper ones out.

This is where I am at with this hobby. I fully intend to continue with it until copper pennies are as rare as a war nickel. I even have a machine coming in the mail that sorts them by weight to help speed up the process. I am looking forward to that and will update you on its usefulness. Its free copper. Tell me why we should not be doing this and I am sure we will have a fun conversation.

Here is a quick story before I wrap up, this really did just happen...

While discussing saving copper pennies with the guys here at work, one said his only question is what am I going to do with them all. Well I knew I bit of his history which included being handed down mason jars full of silver dollars. So I asked him why he has mason jars stashed away. He told me for a second (or third) time that he got them from his grandpa who put away a handful every week. I then reminded him that one day I too will be a grandpa.

Remember to continue educating yourself every opportunity that you have, thanks for your time --- C.H.