Topic: Lowest Risk vs Highest Return... Maybe Not BTC, Gold or Silver-- Instead PENNIES (Read 80 times)

Everyone who invests in Altcoins wants to hit the next 5x or 10x coin.

But maybe, just maybe... you have quite a few laying between the seat cusions of your couch at this very moment.

Doing the math, it crossed my mind today that pennies; thats right (1 cent US Pennies), which were minted prior to 1983; may be a decent investment when compared to BTC.

I only bring the penny up; because many often weigh the investment potential of BTC to Gold or Silver.

Some Background:

In 2007; the US Congress Passed a Law banning the melting of in circulation US Coins. So, it's now illegal to destroy pennies...

Pennies minted prior to 1983 were made of a different alloy than 1984 and later minted coins due to fact that copper has been since then, in shorter and shorter supply, and the price of copper has such gone up.

It takes about 129 Pennies to Get 1 LB of Copper based on the 95% Alloy in the Pre 1983 Coins.

Copper is currently trading at roughly $3.19 per LB. It's seen highs above $4.00, but there is no question the world needs copper; and demand is strong, even with Canada discontinuing the CAD Penny in 2013. Copper is primarily used in electronics, wiring, construction, and basically all things electrical.

While the world is going fiber optic; copper will still be the go to choice for running electric lines and building homes and commercial spaces (wiring); for likely the next 100+ years.

You can easilly buy Bulk Penny Pre-1983 Bullion online (Easy to Find lots of 50,000, or 100,000 Penny Lots.) They have 10s or 100s of millions available ready to go.

NOW. I think we've all been asking why does the USA seriously still use the penny. As inflation continues; the penny will likely; within most of our lifetimes hear (and perhaps earlier than we think); discontinue the penny.

Discontinuing the Penny would thus allow the penny to be destroyed/melted. It would be considered no longer in circulation or used (most likely).

If copper in 10 years hits $7.00 a LB. Each $1.29 of Pennies would return $7.00 on the trade in value at your local county dump where they buy scrap metal by the pound.

It's possible that if the penny is discontinued; that in the next 20 years; we will see some sort of a copper run. Where, just like Gold is doing now; it surges. Perhaps to extreme highs, based on the industrialization of rural areas/countries, technology, etc.

Just an interesting though; or at least it seemed so to me.

If the timing hit right... and you had $25,000 in pennies just piled up in your basement (provided you have the space to store them); and then the US Penny is Discontinued, and sometime in the years after Copper surges, let's say to $10, you'd have $250,000.

The draw of this idea in theory is this:  High Return Potential : Low Downside Risk.  Worst case scenario. You just get your money back. The penny will only devalue at the rate of inflation; which is very low. It will always be worth a penny.

The upside, is if the timing works, you could 4x, 5x, 10x, or more your investment.

But you'd need the space, and not plan to move; because those penny bags... are heavy.

Cheers!

Strato