The E-Sylum:  Volume 10, Number 31, August 5, 2007, Article 19

BILL BURD ON 'GETTING RICH MELTING COINS'

Bill Burd forwarded a copy of a write up he did on the melting
of cents in response to many customers talking about melting
their cents as a way of dissuading them from thinking it's a
way to get rich quick.

"Let's assume it is legal to melt cents and lets assume copper
is $3.00 a pound and the smelter will pay you 80% of the spot
price of copper.  In order to make it worth while you want
to receive a check from the smelter for $5,000.00 on your
first transaction.

"A copper cent weighs 3.11 grams and is 95% pure.  154 cents
equals one pound of pure copper.  Cents from 1909 thru 1958
trade in the numismatic community for 2 to 3 cents each which
is more than their melt value.  Cents from 1959 thru 1981 are
copper and would be the only candidates for melting.  Coins
from 1982 to present are not copper and would have to be removed.

"With copper valued at $3.00 a pound one cent contains $.0195
worth of copper.  At 80% the value is $.0156.  In order to
receive the $5,000.00 you need to melt 320,000 cents which
is 2,200 lbs.

"From 1959 thru 1981 approximately 152 trillion cents were
produced and from 1982 thru 2006 approximately 273 trillion
cents were produced.  If each year was evenly represented
36% would be copper and the remaining would be zinc.

"In order to find your 320,000 copper cents you would need
to sort through 890,000 cents which would be 6,100 lbs.
If you sorted through 10,000 cents each day it would take
89 days to accomplish.  Once sorted you need to return the
3,900 lbs of zinc cents to the bank and deliver the 2,200
lbs to the smelter.

"Now the $5,000.00 you receive from the smelter is not
profit.  The 320,000 cents cost you one cent each so your
initial investment is $3,200.00.  That leaves you with
$1,800.00 to cover transportation, labor and profit.

"Still want to melt cents?"

  Wayne Homren, Editor

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