Quick answer? 13.4 pennies in each role are pre-1982 (as of November 2014 in Ann Arbor MI). Longer answer follows:
If you’re reading this post I’m assuming your not a regular reader (welcome to the site) since I don’t usually write about investing in currency. My primary topic is financial independence with a focus on buying real estate as a means to this end. Currency, commodities, and financial markets however have always been interests of mine and coin collecting runs in my family.
As a recap/summary: There are those out there that have deemed pre-1982 pennies and nickels (to the current day) as “risk free” investments because of the bullion value of the copper used to mint them. You buy the coins at face value, assuming that the price of copper will continue to rise (which it probably will) and hold onto them until the U.S. government decides that it’s too expensive to continue to mint them in copper and switches to something cheaper such as zinc. At that point, the coins with the more valuable metal, in this case copper, become collectors items. This happened with silver dimes and quarters (both minted until 1964) and now only available a for purchase based on the price of silver).
Lincoln pennies were made out of 95% copper until 1982 when the government decided that copper was too valuable and switched to primarily zinc. Based on the current price of copper, a penny is comprised of 2.03 cents worth of copper (as of this writing, up-to-date information available here). Every nickel up through 2014 (when this was written) are made up of 75% copper and have a melt value of 4.49 cents (latest data here).
The idea put forth is not to buy pennies or nickels and melt them down but to wait until the difference between the face value and the melt value is so great that they become collectors items, just like silver (pre-1964) nickels and quarters. The problem with buying pennies is that it’s impossible to acquire 100% pre-1982 pennies these days without paying a premium to someone who will sort them out for you. You will generally end up paying about 2.1 cents per penny. Sorting pennies is laborious and time consuming which is why folks investing in coins for their melt value opt for nickels … no sorting needed, at least as of 2014.
Part of me is drawn to this sort of thing, maybe it’s the fact that you can get pennies for 1 cent, look through them, keep the good ones, and sell them back for exactly 1 cent. There’s no chance of losing money. Just as an experiment, I went to the bank and got $24 worth of pennies (48 rolls of 50) and sorted them. An average there were 13.4 pre-1982 pennies in each roll, in percentage terms, 26.8%. Some had as many as 20 and some had as few as 7. There were also 5 wheat sheaf pennies in the lot and 10 Canadian cents.
A quick disclaimer …
Some 1982 pennies were made out of copper and some out of mostly zinc. The only way to tell is to weigh them. Since I didn’t have a good enough scale, I counted all of the 1982 pennies as copper pennies so the percentage of copper pennies could be slightly smaller depending on how many of the 1982s were actually zinc.
If you have any experience with this, please feel free to leave a comment below or drop me a note.