Wednesday, March 14, 2012

New Blog Look and Updates!

As you can see, the blog got a little bit of a face lift. I added a blog holdings tracker under the title so I no longer have to update the current holdings every post. I can just discuss any changes made. A reader suggested it via my Hub Culture page (If you don't know what Hub Culture is, read the post about it here). Also, you can see that I have accumulated 68.00 Ven (the currency of hub culture), by being an active member of the community. It's worth about 7.50 USD, which isn't enough to buy anything through the site, so the Ven hording will continue.

You'll also note that I am no longer in possession of the 800 MS points I received by searching with Bing (See post below for explanation). I sold them to my friend for 7.50 USD.

With my free cash now over 10$ I decided to try something different than my usual buying and selling of non physical items. I bought 10$ worth of pennies seen below.


I know what you're thinking. Why would I buy pennies? Also, how could I possibly be able to turn a profit by exchanging some paper currency for pennies? I promise that there is a method to my madness! Below are two picture. Do you see any major difference between the two?
There doesn't seem to be a difference between the two, with the exception that one was made in 1981 and the other was made in 1983...Right?

Wrong!! There is a difference. It isn't on the outside of the penny, but on the inside! Pre-1982 pennies are made of 95% copper and 5% zinc. Post-1982 pennies are made of 97.5% zinc and 2.5% copper. Around 80% of the pennies minted in 1982 were made of 95% copper, therefore you have to weigh them to verify their copper content. This may not seem like a big deal, but by doing a little math involving current copper prices, you'll realize that ONE pre-1982 penny is really worth 2.53 cents!

This results in a total return of 153% per copper penny I save. The best part about this "investment" is that it's a sure thing! If tomorrow copper prices were to drop you wouldn't be out any money! Simply exchange the pennies for paper currency, and you're back at where you started. So how does one take advantage of this?

Simply melt the pennies down!...Except the Mint deemed that illegal in 2006, and the Secret Service will be all over you faster than you can say Ben Franklin. So what now?

Although it may be illegal to melt down pennies for their base metals, it isn't illegal to hoard them in the hopes that the US Mint will change the laws. There is a growing amount of people who are buying up physical copper (aka pre-1982 pennies) in hopes that the price per pound will increase so they can turn a profit (think of it as the poor man's gold).

Out of the 10$ in pennies I bought about 2 pounds of them were pre-1982 pennies. The face value of which is approx. $3.00. Their metal (melt) value is $7.61. I checked on eBay to see if people would really be willing to pay such a premium...They are and then some.

I'm going to exchange the post-1982 pennies for cash. That and some of the left over cash in the 10^6 cash fund should be enough to get ~10$ more in pennies. My goal is to get 5 pounds of pre-1982 pennies and sell them on eBay. Below is a picture of the hoard I have now.

4 comments:

  1. Damn dude, I admire you. You really seem to have great ideas for making money! Respect!

    ReplyDelete
  2. hahaha penny money making! lots of fun reading it and it seems pretty useful too!!!
    gratz

    ReplyDelete
  3. Lol that's awesome... Tedious but awesome.

    ReplyDelete