Why Are People Hoarding Coins? – Investopedia 09-26-12

Salient to Investors:

Prior to 1965, dimes and quarters were made primarily of silver. Prior to 1982, pennies were composed of 95% copper. Nickels are 25% nickel and 75% copper.
 
At today’s prices for copper and nickel, a dime is worth almost seven cents, though it is illegal to melt down pennies and nickels.

Small-time hoarders get coins from their local bank tellers, more serious ones buy online in bulk. 
 

Hoarders’ investments won’t pay off unless the government lifts the restriction on melting currency.

Pennies and nickels are the most popular with hoarders because of their high copper content. Most pre-1965 dimes and quarters have been removed from circulation by collectors and rarely seen mixed in with other coins.

Coin hoarding has not yet affected the amount of coinage in circulation in the US, unlike Argentina which is facing a coin crisis. and the Philippines.

Read more: http://www.investopedia.com/financial-edge/0912/why-are-people-hoarding-coins.aspx#ixzz2FnalWbSb

 

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