![]() ![]() ![]() You can see all of the data that I used here at Keep in mind that all the numbers I have used here are based on metal prices as of 20Nov2011. A post-1965 dime has a melt value of about $.02! So, just the fact that a nickel is worth $.05 melt value is an accomplishment. A post-1982 penny, for example, has a melt value of about 1/2 of 1 cent. Another way that nickels are unique is that all other coins minted today are made of near worthless metals and are worth only a fraction of the face value of the coin. When copper prices go back up nickels will once again be worth more than face value. That doesn’t mean that nickels aren’t worth a look, however. Currently a nickel is worth about $.05 due to the recent decline in copper price. Another way to put it: You could have bought a $2 roll of nickels for $2 dollars, of course, and you would have been holding an asset of copper and nickel worth $2.80 (40 nickels times $.07). So, it was worth $.02 more in metal content than in face value. Here recently, the melt value of a nickel was around $.07. When copper and nickel are doing well in the market, a nickel can be worth more in melt value than in face value. The nickel is a unique coin today because it is still made of material that is valuable, copper and nickel. Inflation will cause your $2 roll of nickels to buy less in the future based on FACE VALUE, therefore the metal content value must outpace or match inflation in order for this investment to be worhtwhile (which I believe it will and I’ll try to explain). I say ‘kind of’ like a no-lose situation because their is the risk of inflation. So, it’s kind of like an investment where you can never lose your principle contribution but can enjoy upside potential. That roll of nickels is always worth at least $2 due to the face value, but can always increase in value due to the metal content in them. For example, you buy one roll of nickels for $2. One great thing about this is that your investment in nickels will at the very least be worth what you’ve invested in them (dollar wise). So, if my thinking is correct and I haven’t missed anything, the best way to invest in copper would simply be to buy rolls of nickels. (Also, pre-1982 pennies are 95% copper and have a melt value of about $.02 or double the face value) So this seems the most cost effective way to gain exposure to the copper market. And the great thing about this is that we still value in the 25% of nickel that we haven’t in figured in. A roll of nickels cost $2 so we are paying only $.38 per ounce or $6.05 per pound of copper (much closer to the $3.40 spot price). Figuring only the copper content we multiply 7.05 by 75% and get approx. Here’s the numbers: A roll of nickels weigh in at approximately 7.05 oz. So I did the math to see how cost effective this would be. Significantly cheaper than the one oz coins but still costing $10.50 per pound of copper.įinally, I remembered that I had posted an article on here not to long ago about saving nickels because they are made up of 75% copper and 25% nickel. So, for the math: $105 divided by 160 oz gives us approximately $.66 per oz. ![]() Next I found an ‘auction’ at a certain online site that was selling 20 8oz copper bars for $105 (including shipping). I understand that there is the cost of minting and stocking and all of that, but this seems like an extremely high premium. So, this didn’t seem like a very profitable option. As of today, the spot price for a pound of copper is about $3.40. At 16 av oz to the pound you can see that you would be paying $29.60 per pound of copper. Note: All figures following are based on prices as of 20Nov2011.įor instance, at one very popular online dealer I could buy 1 av oz. What I found is that investing in copper bullion is quite expensive (if my math and logic is correct, which I will attempt to explain next). Then I began to break down the actual cost of investing in copper bullion compared to its spot price. I compared prices of different forms of copper bullion as well as a comparison of different dealers. I was interested in investing in physical copper and began shopping around and doing some research. ![]()
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