4/12/2006

Penny Pincher

The Daniel Gross blog had a post called "A Penny Saved. . . ." that was of particular interest to me. The post went on to comment about the recent high returns in the metals market, especially copper. I can attest to this because in my investments class, my group invested in a copper company, and recently just cashed in, earning ourselves a hefty 23% profit in less than a quarter! We were thrilled to say the least. The author of the post brought up the interesting idea that pennies may actually be worth more than a penny if the prices of copper keep booming. If that were to be true, I might actually have something going for me financially, but I'm not about to hold my breath over the possibility.

6 comments:

M High said...

Actually, a penny is worth almost 1.85 cents.

Pennies from before 1982 (95% copper) are worth about 1.85 cents in metal value. Pennies from after 1982 (97% zinc) are worth about 0.77 cents in metal value right now. And nickel is getting pretty close to parity, too.

Apply Gresham's Law, and it's only a matter of time before we see small change disappearing from circulation (the same way silver coinage disappeared in the mid-sixties). This year, next year, five years from now? Dunno when, but it will happen eventually. I suspect the mint is seriously considering switching to aluminum or copper-coated steel for some of the minor coinage at this point.

A good source for info on this is http://www.coinflation.com

parker said...

I am glad that someone chose to do a blog on metals and their pricing as of late. In our Investments class the teacher instructed us to view the various metals as a currency as opposed to a means of protecting oneself from “hell in a handbasket.” He suggested that if the world were to go to ”hell in a handbasket” then having gold will be the least of our worries. However, as of late it seems that more and more people are suggesting that economic indicators are pointing towards major inflation for the dollar in the near future. Being poor I can not really afford to invest in a lot of gold or silver, but I wish I could because I fear the masses and I think that they are going to be headed in that direction and continually driving up the prices of such metals.

Billy said...

I'm gathering up my savings and I'm going to buy some silver and copper. I think that one thing that is going to drive up the price of silver is the fact that Barkley's bank is planning on issuing a silver-backed ETF.

Dr. Tufte said...

It's nice to get a comment from the outside that pretty much sums up the things I would have said.

gralmy said...

http://www.stupidpenny.com is an online petition I started to abolish the penny! If you're as tired of the penny, sign the petition!

Dr. Tufte said...

Thanks for commenting. I signed!