coincollectingenterprises web store FAQ section

SO THIS MEANS THERE WILL BE LESS AND LESS COPPER PENNIES OVER TIME. BUT IF COPPER PRICE KEEPS RISING, THEN DEMAND FOR COPPER PENNIES SHOULD INCREASE, TAKING MORE OUT OF CIRCULATION. ARE THERE ENOUGH COPPER PENNIES TO GO AROUND?

Because not all pennies are made of the same metal composition. The most valuable pennies from an intrinsic metal standpoint are the copper pennies. We sort out the pennies you do not want from the pennies you do want.

Yes. The majority of pennies are not copper pennies. We sort the less valuable pennies out, and keep the more valuable pennies which we provide to you. This is the basis of Gresham’s law.

Gresham’s law states that when government compulsorily overvalues one money and undervalues another, the undervalued money will leave the country or disappear into hoards, while the overvalued money will flood into circulation. The more popular catchphrase of this law states ‘bad money drives good money out of circulation; the superior currency will tend to be hoarded and the inferior will thus dominate the circulation’ – zinc pennies are the inferior currency and thus are the ‘bad money’ dominating circulation. Copper pennies are the superior currency and are the ‘good money’ being hoarded. Therefore, zinc pennies drive copper pennies out of circulation. This is why if you went to the bank today and asked for a dollar in pennies, the vast majority would be zinc pennies.

For now, yes. But not for long. The supply of copper pennies has greatly diminished over time, even though demand for copper pennies continues to dramatically rise. It is basic supply and demand principles. As supply decreases, the value goes up. As demand increases, the value goes up. Except in the case of the copper penny, both supply is decreasing and demand is increasing. Copper pennies are not made anymore so there is no possibility of increasing the total amount in circulation.

The U.S. copper penny are 1982 and prior. Approximately halfway through the year 1982, the U.S. mint changed the composition from the copper penny to the penny composition that we know today.

95% copper, 5% zinc. The U.S. pennies known as “wheat cents” may also contain some tin, but the quantity is too insignificant to calculate.

97.5% zinc, 2.5% copper.

No. It is illegal to melt the U.S. penny at this time. We do not support any actions, direct or indirect, that result in illegal activities.

Yes, please feel welcome to visit our disclaimer page for a link to these laws on our website, http://www.coincollectingenterprises.com

No. Think of it this way. If it was legal to melt pennies then everyone would do it. Why would we sell to you when we could melt them and get spot price? The only reason there is a market available to you is because it is currently illegal to melt them. Once they can be melted, you will not be able to buy them at such great pricing. That is why we strongly encourage you to buy now, before it is quite literally too late. The greater the cost to make new pennies, the sooner it will be that the penny will be removed as legal tender.

A lot. To make 1 cent, it costs 1.79 cents. This is a significant cost to the U.S. government, and as a result, to the U.S. taxpayers. In the past year alone, the cost of the penny and nickel have resulted in two times the loss in production costs between 2009 to 2010: “Per-unit metal costs increased in [Fiscal Year] 2010, driving up the total unit cost of all denominations from last year. The nickel per-unit metal and fabrication cost rose 2.3 cents from [Fiscal Year] 2009, increasing the nickel total unit cost 52.9 percent to 9.2 cents in [Fiscal Year] 2010…. Higher unit cost and demand for the five-cent coin increased the overall loss the United States Mint incurred from producing these denominations in [Fiscal Year] 2010. Penny and nickel coins were produced at a loss of $42.6 million, nearly double the [Fiscal Year] 2009 loss of $22.0 million.” This is a quote can be seen on the U.S. Mint’s Annual Report, 2010 (page 27 & 28).

Yes. Visit our FAQ page on our website to see the table via our website: http://www.coincollectingenterprises.com Though if you just want to know the cost of one penny, here it is: One-Cent Total Unit Cost = $0.0179 Source: U.S. Mint Annual Report (page 29)

Good question. That is why there are many people, organizations, and professionals that feel the penny will be discontinued in the near future making copper pennies a sound investment choice.