Does Investing in Pennies Make Cents?

All pennies minted in the United States prior to and during the first part of 1982 were composed of 95% copper and 5% zinc. After 1982 the composition of pennies was changed to 97.5% zinc and 2.5% copper. Pardon the bad pun, but does investing in 95% copper pennies make any (cents) sense? Copper prices have hit new highs, and the theoretical melt value of a 95% US copper penny is close to $0.03!

So the key question is buying pennies a good idea? I say absolutely no, and here's why:

• The Melting Ban:

  On December 14, 2006, the United States Mint implemented interim rules that made it illegal to melt or export nickels and pennies. On April 17, 2007, the U.S. Mint announced a final rule to limit the exporting, melting or treatment of one-cent (penny) and five-cent (nickel) United States Coins.

What good will it do you to own ten million pennies (face value $100,000) and three times as much in copper melt value if it's ILLEGAL TO MELT THEM?

• Bulk:

It takes 10 million pennies to get a face value investment of $100,000. Such a penny cube would be six feet high, wide, and thick & weigh 31.3 tons! That means you're going to need a couple of semis and a forklift for delivery or whenever you want to move these things.

Plainly shipping and warehousing costs would be a significant drain on any large penny investment. Companies like the Portland Mint offer storage options, but that means they retain the pennies while you just get the bills for the storage, which isn't cheap. Of course, there's always the worry of proving ownership should the Portland Mint go out of business or even change ownership.

In short, invest in gold and silver and take delivery of your metals.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

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