Fed Reserve rolled pennies/coppers removed?

[Lemon Thrower]

very interesting. the rich guy sees value and is paying coinstar to sort and horde for him. no brainer if you can afford to be patient like him.

yes, this could dry up supply but demand should stay constant or increase. good for those of us who already have been doing this for a while.

as for the Mint, they are looking at changing the metals but so far all they got was the Coin Modernization, Oversight,
and Continuity Act of 2010.

[JJM]

No one reading this can say they weren't warned. Sort now while the sorting is good! Bummer to those folks living in the areas where the super sorters are already turned on though!

[goodcents]

Now what about a Warren Buffet, Gates, or the Facebook guy who has 1 billion to diversify with? Hmmmm....

[1945v]

There is huge carrying costs for someone with a $5,000,000 investment in copper pennies versus a private (small time) hoarder:

1) Transporting $5,000,000 (1600 tons) of copper pennies to your storage facility requires 80 truck loads. I am sure this is not cheap.
2) There is recurring storage costs whether the rich investor pays rent for a facility (i.e. Brinks) to store the coins or pays property tax (and up keep) for his own private warehouse.
3) Given all the copper thefts, $5,000,000 is a tempting target. Therefore, full time guards would need to be posted at the storage facility. More recurring costs.

Storing a large amount of copper pennies only makes sense if someone expects a huge rise in copper prices in the short term. Otherwise, it is a money loser with all the carrying costs involved.

[TXBullion]

There is huge carrying costs for someone with a $5,000,000 investment in copper pennies versus a private (small time) hoarder:

1) Transporting $5,000,000 (1600 tons) of copper pennies to your storage facility requires 80 truck loads. I am sure this is not cheap.
2) There is recurring storage costs whether the rich investor pays rent for a facility (i.e. Brinks) to store the coins or pays property tax (and up keep) for his own private warehouse.
3) Given all the copper thefts, $5,000,000 is a tempting target. Therefore, full time guards would need to be posted at the storage facility. More recurring costs.

Storing a large amount of copper pennies only makes sense if someone expects a huge rise in copper prices in the short term. Otherwise, it is a money loser with all the carrying costs involved.

Very Good points....... and good thought put into it. Did you by chance buy 5M in Copper?

[1945v]

There is huge carrying costs for someone with a $5,000,000 investment in copper pennies versus a private (small time) hoarder:

1) Transporting $5,000,000 (1600 tons) of copper pennies to your storage facility requires 80 truck loads. I am sure this is not cheap.
2) There is recurring storage costs whether the rich investor pays rent for a facility (i.e. Brinks) to store the coins or pays property tax (and up keep) for his own private warehouse.
3) Given all the copper thefts, $5,000,000 is a tempting target. Therefore, full time guards would need to be posted at the storage facility. More recurring costs.

Storing a large amount of copper pennies only makes sense if someone expects a huge rise in copper prices in the short term. Otherwise, it is a money loser with all the carrying costs involved.

Very Good points....... and good thought put into it. Did you by chance buy 5M in Copper?

TXB,

If I had $5,000,000, I would rather buy 5 tons of silver or 200 lbs of Gold

[TXBullion]

There is huge carrying costs for someone with a $5,000,000 investment in copper pennies versus a private (small time) hoarder:

1) Transporting $5,000,000 (1600 tons) of copper pennies to your storage facility requires 80 truck loads. I am sure this is not cheap.
2) There is recurring storage costs whether the rich investor pays rent for a facility (i.e. Brinks) to store the coins or pays property tax (and up keep) for his own private warehouse.
3) Given all the copper thefts, $5,000,000 is a tempting target. Therefore, full time guards would need to be posted at the storage facility. More recurring costs.

Storing a large amount of copper pennies only makes sense if someone expects a huge rise in copper prices in the short term. Otherwise, it is a money loser with all the carrying costs involved.

Very Good points....... and good thought put into it. Did you by chance buy 5M in Copper?

TXB,

If I had $5,000,000, I would rather buy 5 tons of silver or 200 lbs of Gold

I think Id do a split at 65 UScopper/15 Canadian Nickel/15 Silver/ 5 Gold So id probably be closer to 3.25M on the US copper

[highroller4321]

There is huge carrying costs for someone with a $5,000,000 investment in copper pennies versus a private (small time) hoarder:

1) Transporting $5,000,000 (1600 tons) of copper pennies to your storage facility requires 80 truck loads. I am sure this is not cheap.
2) There is recurring storage costs whether the rich investor pays rent for a facility (i.e. Brinks) to store the coins or pays property tax (and up keep) for his own private warehouse.
3) Given all the copper thefts, $5,000,000 is a tempting target. Therefore, full time guards would need to be posted at the storage facility. More recurring costs.

Storing a large amount of copper pennies only makes sense if someone expects a huge rise in copper prices in the short term. Otherwise, it is a money loser with all the carrying costs involved.

1: Depending on how far the truckloads have to move thats a $320,000 cost

2: If he already owns the building than all he needs is to pay property tax.

3: It takes a LOT off effort to move that much copper. I simple and basic alarm system would suffice.

With 11 Million plus worth of copper and having less than 6 million invested....I think he is sitting very very nice!

[TXBullion]

There is huge carrying costs for someone with a $5,000,000 investment in copper pennies versus a private (small time) hoarder:

1) Transporting $5,000,000 (1600 tons) of copper pennies to your storage facility requires 80 truck loads. I am sure this is not cheap.
2) There is recurring storage costs whether the rich investor pays rent for a facility (i.e. Brinks) to store the coins or pays property tax (and up keep) for his own private warehouse.
3) Given all the copper thefts, $5,000,000 is a tempting target. Therefore, full time guards would need to be posted at the storage facility. More recurring costs.

Storing a large amount of copper pennies only makes sense if someone expects a huge rise in copper prices in the short term. Otherwise, it is a money loser with all the carrying costs involved.

1: Depending on how far the truckloads have to move thats a $320,000 cost

2: If he already owns the building than all he needs is to pay property tax.

3: It takes a LOT off effort to move that much copper. I simple and basic alarm system would suffice.

With 11 Million plus worth of copper and having less than 6 million invested....I think he is sitting very very nice!

You have to figure what the building capital opportunity cost if you are not factoring in rent. Im sure you know the square footage, but we are talking a building opportunity cost, utilizes, He's not using a pallet jack to move that stuff around and he probably has someone doing it (labor cost). Sure he might have internet access , phones, computers, servers. Not that those are significant costs in relation to the whole deal but recurring carrying costs none the less...

[purple and gold]

i hope they never lift the ban and all these super hoarders get stuck with a huge pile of cents,,and have all their money tied up for nothing

[purple and gold]

Greed always, always, turns around and bites you in the a$$

[NHsorter]

I don't see how buying 5m in cents makes you greedy. It's not like he is cornering a market or depriving others somehow. There are trillions of pennies to be had. Savvy investing does not equal greed. Remember, worst case, he will have 5 million dollars out of this. I can think of millions of "greedier" investments that he could make with this money. A copper penny stash is more for wealth preservation, not exponential returns.

[Gipper1985]

I don't see this as greedy either, maybe he his just testing the market. I am not 100% following this story, but is it possible that $5,000,000 is not a big deal to this particular investor. For some people $5,000,000 is an accounting error. Maybe he is a US Senator or something?

[68Camaro]

Got my second skunk box this year, and the other one - months ago - was a box of new cents. This one was an oddball - someone had dumped a BoA Brinks box at my Regions bank. Regions uses String boxes, and so when they brought out this oddball, already opened, as part of my order, my heart sank a little. Looked in it and there were 6 CWRs with the balance still Brinks plastic wrapped. I took it anyway, but when I got home the CWRs were all zinc, and I weighed the Brinks rolls without opening and they were all zinc as well. So clearly there is another sorter in my immediate area that I wasn't aware of, and I got his/her dump box, and they had gotten themselves a Brinks sorted box.

So, looks like the contagion has made its way to Florida. The String rolls, my norm, are still okay, so far.

[baggerman]

So far I have not seen any difference here in Oregon, still running 20%+ on just about every box.

[NHsorter]

Maybe he is a US Senator or something?

[everything]

Things have been great, any problems down south yet?

[adagirl]

Things have been great, any problems down south yet?

Still running at about 20percent here in central Georgia

[theshoenlebens]

Staying around 25-27 % here in southern Ohio

[68Camaro]

As noted above, Brink's boxes have become a crap-shoot that I've already tired of taking a chance on. I've had several skunks in recent months since the super sorter started, and I no longer bother wasting my time with Brinks. But Dunbar and Loomis boxes remain 20-23% Cu, as has been the recent norm.

[MUTiger]

60% through a Brinks box I just got and averaging about 27% copper with about 3 wheats for every 5 rolls. However, the previous Brinks was all new 2011s.

mutiger

[coinwolf]

i had a brinks full of zinc in Dec. but the last few boxes from same bank have been fine.

[m21221]

Seeing 24% to 25% in NC. I did experience a complete skunk several months ago.

[tinhorn]

I got another skunk this weekend. String box, and it was a standard-looking mix with plenty of old coins, but when I weighed it, it came in at just over 14 lbs. Ran it anyway and got 1.6% coppers!

[adagirl]

I got another skunk this weekend. String box, and it was a standard-looking mix with plenty of old coins, but when I weighed it, it came in at just over 14 lbs. Ran it anyway and got 1.6% coppers!

Ouch!