Why Some People Are Hoarding Pennies


Most people like to save money whether be in monthly savings or in loose change. Some may even consider collecting pennies – the lowest unit of currency used in the modern day – but not because of its government issued value. People are actually collecting pennies so that they could be melted for their raw resources, mainly the copper content. Since the materials needed to make a penny are over a cent many Americans have started to hoard massive amounts of pennies in hopes of smelting them one day.


The penny these hoarders are collecting are not just any

old penny – or perhaps I should say, it’s not any ‘new’ pennies – but specifically pennies made before 1983. The pennies made before this year were composed of around 95% copper, whereas newer pennies have a much lower copper composition. So the older pennies are worth up to 2.5¢ per penny bringing a 150% profit per penny. These people often collect thousands upon thousands of dollars’ worth of pennies.


However, there is a catch to this seemingly riskless investment. As of right now destroying government currently is illegal making melting (and ultimately destroying) pennies illegal. Therefore the hoarders cannot do anything with their pre 1983 pennies except to resell to others. So now you may be asking, “why collect so


many pennies if you can’t even melt them”? That’s when I inform you that most of the penny investors are confident that the age of the penny is soon to end, since it is an incredibly inefficient unit of currency and is currently acting as a crutch to our society, as it fails to serve its only purpose.


Most people are incredibly confident that the penny will soon be removed because of the fact that it wastes so much government and tax payers’ money every year. It was estimated in 2010, $60 million was wasted in producing pennies because it costed 1.8¢ to produce something worth only 1¢. If you’d like to read the article regarding to as why Pennies are useless, then click the orange link.

Sources:
Strain, Jeff. "Penny Hoarding: Strange Ways To Make Money." - Saving Advice Articles. N.p., 8 Jan. 2010. Web. 10 Sept. 2012. <http://www.savingadvice.com/articles/2012/01/08/108698_penny-hoarding.html>.
Preston, John. "The Penny Hoarder." Why Some Americans Are Hoarding Their Pennies.... (Literally). N.p., n.d. Web. 10 Sept. 2012. <http://www.thepennyhoarder.com/2012/04/why-some-americans-are-hoarding-their-pennies-literally>.
 



Article Written By GDop26

RIT student

Last updated on 23-07-2016 136 0

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