Pennies Worth More Than Face Value Amid Copper Price Surge
Copper prices have surged to an all-time high near $6.85 per pound, making the copper in old U.S. pennies worth several times their face value. According to Peter Schiff of Euro Pacific Capital, a pre-1982 penny contains 4.46 cents of copper, while modern zinc-core pennies contain 1.07 cents.
The price increase is due to tight supply and strong demand from industries such as electrification, power grids, and data centers. This has led to a technical breakout after seven months of price compression, with ascending triangles often signaling that buyers are absorbing supply at resistance.
However, the trade in pennies for metal is not risk-free due to federal restrictions on melting or exporting U.S. coins. Storing, transporting, and selling large quantities of coins would also incur significant costs.