OK dorkarl, I didn't intend my question as a trick but you were first with the correct answer if I had. Congrats. Being more specific now, has the copper in a Lincoln cent ever been worth more than the face value of one cent? What does spot copper have to be and when has this ever happened?
I seem to remember a time in the 70's where copy went high enough to outrun a penny.
If I recall correctly this was at the time when we hafd $800 gold. COnstruction sites had 24 hour security to prevent theives from stripping out the copper pipe from buildings under construction. Being from Jersey, this was a regular event.
"I want to die peacefully in my sleep like my Grandfather did, as opposed to screaming in terror like his passengers."
I know the price was getting close in the 1850s. I read somewhere that they were breaking even on the large cents due to minting cost and distribution.
I think in the 70's it was similiar resulting in the change to copper plated zinc cents in 1982. Along the same line there was the aluminum pattern in 74. Other than this rambling I don't know if it did occur.
Thanks everyone, and especially coppercoins. I didn't think that the copper in a Lincoln cent had ever surpassed its face value. Shortages occured in the past when hoarders saw the price of copper approaching the point where melting would be profitable. Guess nobody has made a cent off hoarding copper cents yet.
It has never been high enough for the metal in a lincoln cent to exceed the face value but it has been close. In the early 70's copper got up to the $1.30 a pound range and seemed to be on the move to higher levels. At that level it was just about break even for the mint to produce cents. (Cost of materials + cost of production > .95 cents each.) But then the copper prices turned and headed back down.
Right on the nose, Cladking. Because it's CHEAPER. Less cost, less weight, less attractiveness, and you would think they would have realized it by now - FAR less life span!
The switch over to zinc was one of the worst moves they ever made and why they stick to their guns on it is beyond me. I figure it has to do with something going on between the mint and the zinc industry. Somebody knew somebody who owned a lot of zinc and wanted to sell it, and they talked to the right people who decided the switch was a good idea. I don't know, pure speculation going on here.
What I do know is that the copper plating on the cent, comprising of only 2.5% of the overall composition of the coin, is way too thin and splits easily when struck. This leaves bare pure zinc exposed to the air. For those who understand chemistry better than I it might be simpler to explain. I do believe, however, that pure zinc exposed to air, which has oxygen in it, creates zinc oxide in powder form - same thing as the white stuff you can put on your nose to protect from sunburn. This quickly brings an end to the life of a cent. Bronze cents didn't face such dangers.
Here we have a time when poking around at the ground with a metal detector brings up crap that used to be a cent made five years ago, and in the next hole a nice chocolate brown wheat cent. I long for the good old days, but doubt they will ever happen. The mint seems to continuously make bad decisions - the single squeeze die making process which required micron thin relief and ugly coins to result, the switch from bronze to zinc, the alloy used in the Sacabuck. All great failures of the late 20th century....blahh!
Zinc is a common metal and is found in many locations. The zinc industry has a powerful lobby in congress. I understand Al gore has a zinc mine on his property in Tennessee.
In the kind of quantity found in a cent, zinc is a deadly poison. If the copper sheathing is compromised stomach acids can easily dissolve an entire cent in hours. This quantity of zinc is sufficient to kill most mammals under about a hundred pounds.
Zinc cents are proving difficult to preserve in pristine condition. Some of the early dates are already becoming harder to find.
The cost to manufacture a cent has been running between eight tenths and nine tenths of a cent for some time now. The last figure I saw was .82, leaving a profit of .18 for each cent. I'm sure that figure has been revised by now.
I figure it has to do with something going on between the mint and the zinc industry. Somebody knew somebody who owned a lot of zinc and wanted to sell it, and they talked to the right people who decided the switch was a good idea. I don't know, pure speculation going on here.
.......it wouldn't be the first time a coins metal content was dictated by special interests in bed with the government. can anybody say morgan silver dollar and shield nickel??
During the second world war when they were searching for a replacement for the copper in the cent several materials were tested including cardboard, plastic and glass before settling on the low grade steel plated with zinc. At one point a serious contender was a brown glass compostion that had as an anticounterfeiting feature the fact that it would glow under blacklight. It seemed to have the inside track until one day the government suddenly did an about face and scapped that composition. It seems that in order to get the brown color and the blacklight properties they were using uranium oxide as one of the ingredients.
I am not an expert on this but I read a article recently where it states that when the large cent was reduced in size is about the time the cost of a penny to make was VERY close if not over .01. It also could have been worth just under .01 in bullion value at that same time.
You large cent guys chime in on this if I am wrong but I am pretty sure of what I read.
They may have tried a ceramic compound, I don't know . They tried a lot of different things.
For the last couple years the large cent cost the mint more than a cent to produce but I don't think the metal value exceeded one cent. They knew it was headed in that direction though so they experiments with changes in size and coposition in 1854, 55 and 56 before settling on the 88% copper 12 % nickel alloy on the size used for the flying eagle cent. The nickel was included in the aloy for two reasons. One was political as a subsidy to Wharton and the other was to kept the intrinsic value of the metal close to one cent. Even for the minor coinage it was though that it was necessary for a coin to have close to its face value in metal in it in order for it to circulate.
Factoring in all costs, cents cost more than one cent today. It costs the government about 1.2c to get a one cent coin into circulation. It's high time the coin were eliminated and transactions rounded to the nearest 5c.
The government should forget about coins completely and just make $100 bills - they can make those for a couple cents - flood the market with $100 bills and pay off the government debt.
<< <i>Factoring in all costs, cents cost more than one cent today. It costs the government about 1.2c to get a one cent coin into circulation. It's high time the coin were eliminated and transactions rounded to the nearest 5c. >>
Handling costs of cents during their short life span are also staggering.
The government should forget about coins completely and just make $100 bills - they can make those for a couple cents - flood the market with $100 bills and pay off the government debt.
`Thats a Jumbo Jack ,Large Fries,and a Large Coke.Your total is $67,800 Please drive through`
What about Canadian cents compared to the cost of copper in US dollars. Isn't a canadian cent worth about 70% what a US coin is worth?
I thought the exchange rate was closer to 90%.Not sure.It fluctuates. Also didnt Canada begin making copper-plated zinc cents about the same time we did? I may have heard 1984 is the last year Canadian copper cents were made. Did I read that in CoinWorld last year?.
Last I knew the exchange rate was either 63 or 66%. The only reason the canadians can still make their cent is because it is lighter than ours so material cost are lower plus their labor coses are probably less. But it probably still makes it a barely break even proposition.
I've been hoarding copper cents for over 10 years and have just over 200 lbs. Since pre-1982 cents are the only American modern coinage left that has intrinsic value near it's denomination, history (and the unrelenting currency presses) dictate inflation will soon run rampant and a copper penny will have an intrinsic value more than one cent. The next best bet is to hoard nickels for their intrinsic value. All you have to do is live long enough.
Comments
K S
I don't think any cent has ever been worth more than one cent... unless it was an off metal coin, perhaps...
how many pennies in a pound?
2 Cam-Slams!
1 Russ POTD!
If I recall correctly this was at the time when we hafd $800 gold. COnstruction sites had 24 hour security to prevent theives from stripping out the copper pipe from buildings under construction. Being from Jersey, this was a regular event.
I think in the 70's it was similiar resulting in the change to copper plated zinc cents in 1982. Along the same line there was the aluminum pattern in 74. Other than this rambling I don't know if it did occur.
Rich
2 Cam-Slams!
1 Russ POTD!
There are about 3 grams of copper in a cent, making about 165 to the pound.
So, for a 1963 cent to be worth around, say 40 grand, copper would need to hit somewhere north of $6,500,000 per pound.
The Lincoln cent store:
http://www.lincolncent.com
My numismatic art work:
http://www.cdaughtrey.com
USAF veteran, 1986-1996 :: support our troops - the American way.
if there's no danger of the intrinsic value exceeding the face value - then why the change to zinc in 1982?
2 Cam-Slams!
1 Russ POTD!
<< <i>Because zinc is half the price of copper, cheaper to make cents with zinc??? >>
Zinc also weighs less so you can make more coins with a pound and is softer so the dies last longer.
The switch over to zinc was one of the worst moves they ever made and why they stick to their guns on it is beyond me. I figure it has to do with something going on between the mint and the zinc industry. Somebody knew somebody who owned a lot of zinc and wanted to sell it, and they talked to the right people who decided the switch was a good idea. I don't know, pure speculation going on here.
What I do know is that the copper plating on the cent, comprising of only 2.5% of the overall composition of the coin, is way too thin and splits easily when struck. This leaves bare pure zinc exposed to the air. For those who understand chemistry better than I it might be simpler to explain. I do believe, however, that pure zinc exposed to air, which has oxygen in it, creates zinc oxide in powder form - same thing as the white stuff you can put on your nose to protect from sunburn. This quickly brings an end to the life of a cent. Bronze cents didn't face such dangers.
Here we have a time when poking around at the ground with a metal detector brings up crap that used to be a cent made five years ago, and in the next hole a nice chocolate brown wheat cent. I long for the good old days, but doubt they will ever happen. The mint seems to continuously make bad decisions - the single squeeze die making process which required micron thin relief and ugly coins to result, the switch from bronze to zinc, the alloy used in the Sacabuck. All great failures of the late 20th century....blahh!
The Lincoln cent store:
http://www.lincolncent.com
My numismatic art work:
http://www.cdaughtrey.com
USAF veteran, 1986-1996 :: support our troops - the American way.
has a powerful lobby in congress. I understand Al gore has a zinc mine
on his property in Tennessee.
In the kind of quantity found in a cent, zinc is a deadly poison. If the copper
sheathing is compromised stomach acids can easily dissolve an entire cent
in hours. This quantity of zinc is sufficient to kill most mammals under about
a hundred pounds.
Zinc cents are proving difficult to preserve in pristine condition. Some of the
early dates are already becoming harder to find.
K S
.......it wouldn't be the first time a coins metal content was dictated by special interests in bed with the government. can anybody say morgan silver dollar and shield nickel??
al h.
K S
K S
al h.
You large cent guys chime in on this if I am wrong but I am pretty sure of what I read.
<< <i>.......and out the window would go the words coin and minted!!! >>
buahahahahahah! no doubt about it! "double-cast" instead of double-die, "over-cast" instead of over-date, man that would be a problem!
<< <i>cost of a (large) penny to make was VERY close if not over .01 >>
that is correct, but i think that w/ inflation since 1857, the bullion value of a large cent should be more than once cent today.
can anyone do the math?
K S
For the last couple years the large cent cost the mint more than a cent to produce but I don't think the metal value exceeded one cent. They knew it was headed in that direction though so they experiments with changes in size and coposition in 1854, 55 and 56 before settling on the 88% copper 12 % nickel alloy on the size used for the flying eagle cent. The nickel was included in the aloy for two reasons. One was political as a subsidy to Wharton and the other was to kept the intrinsic value of the metal close to one cent. Even for the minor coinage it was though that it was necessary for a coin to have close to its face value in metal in it in order for it to circulate.
<< <i>Factoring in all costs, cents cost more than one cent today. It costs the government about 1.2c to get a one cent coin into circulation. It's high time the coin were eliminated and transactions rounded to the nearest 5c. >>
Handling costs of cents during their short life span are also staggering.
`Thats a Jumbo Jack ,Large Fries,and a Large Coke.Your total is $67,800 Please drive through`
I thought the exchange rate was closer to 90%.Not sure.It fluctuates.
Also didnt Canada begin making copper-plated zinc cents about the same time we did?
I may have heard 1984 is the last year Canadian copper cents were made.
Did I read that in CoinWorld last year?.
K S