Introduction
Just as some people invest large amounts of money into Bitcoin and/or altcoins, some people invest smaller amounts into cryptocurrencies. Billionaires can invest millions of dollars, lottery players can divert their purchase of tickets to a periodic investment in crypto, and both types of investors would be right.
Similar investors (and in some cases, the same investors) exist for precious metals. Just as with cryptocurrencies, a small investment is better than no investment.
Believe it or not, some people invest in base metals-- especially copper.
Base metals are so common that amounts price quotes are given in money per ton terms. Quotes for copper can also be given in money per pound terms; if not, calculations can be made to convert to thos terms.
In some cases, copper can be sold as 1 ounce rounds. Troy ounces are used for precious metals, so those rounds weigh around 31.1 grams. For copper and other base metals, regular ounces are used; copper rounds weigh 28 grams.
Some of the same mints or bullion vendors who sell precious metals also sell copper rounds. Here is a sample from JMBullion out of Dallas, Texas:
At USD 1.49 that sounds like a good deal. In the event of a discount for a bulk purchase, that deal becomes better.
When it comes to USD, there's a better deal out there: copper-based Lincoln cents.
Just look at the math:
- 1 ounce copper = 28 grams
- 1 copper-based Lincoln cent = 3.11 grams
So...
28 grams | 1 cent ---------+----------- = 9.003215 cents 1 ounce | 3.11 grams
A shade over USD 0.09 cents looks like a steal compared to USD 1.49.
Distinguishing Copper Cents from Zinc Cents
These cents have been in circulation since 1909, but not all of them are copper cents.
One way to tell them apart is by date:
- Cents before 1982 were 95% copper (technically, bronze);
- Cents after 1982 are 97.5% zinc.
1982 was a transition year for the Lincoln cent, so both copper cents and zinc cents were minted. To tell which is copper or not, they need to be weighed:
- Copper cents weigh 3.11 grams;
- Zinc cents weigh 2.5 grams.
NOTE:
If you're willing to take time to weigh Lincoln cents dated 1982 to keep the copper cents, that's good. Given the effort involved and the relative amount retained over time, it may not be worth the time and work. When it comes to Lincoln cents dated 1982, it's a question of personal prefrence.
Thankfully, there's a better way to find the copper cents; just look at their backs.
The reverse (tails, the back side) could have any of 3 basic designs:
| Dates | Basic Design |
|---|---|
| 1909-1958 | Wheat ears |
| 1959-2008 | Lincoln Memorial |
| 2010-Present | Union shield |
All cents with the Union shield can be spent away, deposited into a bank account, sold to a store needing change, or anything else. For our purposes here, we don't want them.
| All cents with wheat ears ("wheaties") are worth keeping |
|---|
| Besides their copper content, wheaties are worth a premium to a coin dealer. If over some years you have enough to make complete rolls of cents, you can sell them to a coin dealer for at least double their face value (if not more). On the other hand, if you have only a handful of wheaties and you determined they are just common cents of the era, keep them for the copper. |
Just these 2 basic designs save lots of time in sorting and decision making. That means all the effort can be limited to cents with the Lincoln Memorial design.
Lincoln Memorial cents cover the years 1959 through 2008, and that includes the transition year 1982 when it switched from copper to zinc. Dates need to be examined:
- Anything before 1982-- Keep!
- Anything after 1982-- Spend;
- Cents dated 1982 -- You decide.
What happened to cents dated 2009? Those are zinc cents, so they get the zinc cent treatment. However, due to 2009 being the bicentennial anniversary of Abraham Lincoln's birth, the reverse sides can have any of 4 designs commemorating that occasion. Keeping these is OK, as is spending these.
Where To Find Copper Cents
Pocket Change
As long as we can still use cash, we'll still get change after we buy things. As long as we still get charged sales tax, items with nice round numbers will end up with crooked prices. Go through the pocket change and see what's worth keeping for copper content.
Abandoned Change
99.44% of the time, found money is a good thing. Just make sure it's not associated with someone (as at a workplace).
Purchased Rolls
Banks are the most obvious places to "buy" rolls of cents to look for copper cents. Another source for rolls of cents is a check cashing stores. They may not want to buy them from you, but they will be happy to take them off their hands and sell them to you.
It's possible to "buy" rolls from regular stores, although that situation is irregular.
Why Invest in Copper?
Buying copper is definitely not a "get rich quick scheme." Most copper purchased is for industrial use and in massive quantities. For quantities of copper as measured in pounds, it may be better to get from from scrap; there are people who do well by making the rounds to gather scrap from obsolete machines or appliances, but that's a job in itself.
Most people don't have those kind of access to resources, financing, or time. So it's left to circulating currency to help us here.
Since 1982, when the Lincoln cent transitioned from mostly copper to mostly zinc, there have been rumors about the demise of the Lincoln cent. Making these cents was a money-losing proposition for the Treasury and the Mint. With each new basic design the talk of abandoning the cent increased.
In the event that the coin representing USD 0.01 face value is demonetized and therefore no longer legal tender, a few things can happen to the copper Lincoln cents still out there:
- People who have sufficient quantities of Lincoln cents can sell them to a scrap yard for their melting price. If the scrap yard is local, it may even be possible to avoid costs associsted with travel and transportation.
- Melt or no melt, the Lincoln cents can be used for barter or exchange. I'm not a financial expert, but even I know enough to see the end of the USD is near. Lincoln cents may only contain a bit over USD 0.03-worth of copper and have USD 0.01 face value, but they will be worth more than Federal Reserve Notes when then are renderd worthless.
- For those of us talented in arts and crafts, it's possible to use these copper Lincoln cents to make items selling for dollars per unit (provided demand exists for the item, of course).
Why Use Lincoln Cents?
While it's still possible to find earlier kinds of copper cents, they are not in circulation. For quantities larger than 2 of those cents, a coin dealer would be a better source. Even if you happen to find a decent quantity of these older cents, their purchase price won't justify the investment of money and time in them.
Lincoln cents are so accessible as to be afterthoughts. So were silver USD coins until 1964 turned into 1965.
At worst, Lincoln cents can always be swapped out for more acceptable money and then used to purchase gram-level amounts of precious metals or fractional amounts (Satoshi or their equivalent) of cryptocurrencies.
My Final 2 Cents in Post Format
Cryptocurrency would be ideal for many reasons. Should there be circumstances requiring physical media of exchange, precious metals can take their rightful place. If precious metals are impractical for certain kinds of transactions, copper is still useful as both a medium of exchange and as a raw material.
If we get excited over acquiring free Satoshi, we should be even more excited when we find copper Lincoln cents to keep for a post-USD cent future.
Most people don't have access to industrial-scale resources, financing, or time. So it's left to circulating currency to help us here.
Think of saving Lincoln cents as a way of earning passive income via copper. With television progamming and feature-length movies being what they are these days, saving Lincoln cents is a more rewarding use of your time.
Much of what I wrote regarding copper Lincoln cents can be modified for copper coins from other countries. In a future post I'll discuss Canadian cents along with other world coins having good copper content.
DISCLAIMER
As I am not a financial expert, this post is not meant to give financial advice. This post was written for informational purposes only in the hopes that it may be useful to anyone who is in a position to take advantage of it.
The "How Anyone Can Invest in Copper" Series:
| Part 1: USD Lincoln Cents |
Part 2: CAD Maple Leaf Cents |
Part 3: GBP Pence Coins (Decimalized) |
Part 4: AUD Cents Coins |
Part 5: JPY 10.00 Coins |
Part 6: SIDEBAR-- My Experiences with JPY 10.00 Coins |