Throughout history precious metals have been hoarded as a hedge against inflation. While the US dollar continues to falter in an uncertain global economy, precious metals retain their value. More recently copper, traditionally viewed as a base or industrial metal, has gained attention from precious metals investors. Many expect increased demand as China and India modernize and new technologies utilizing copper are developed. While some choose to invest in commodities markets, many prefer to take physical possession of the metal, honoring the belief that, "If you don't hold it, you don't own it."
Collecting copper products can be viewed as a serious investment, or simply as a fun hobby with the added and unique benefit of amassing intrinsic value. In times of economic difficulty many collectibles lose value because demand falls, but copper products always hold a commodity value.
In a worst-case scenario, should hyperinflation strike the US dollar as it has done with many fiat currencies in the past, many believe precious metals and copper products will provide a means of bartering for other goods and services.
Why Buy from The Copper Cave?
The Copper Cave is the only website of its kind in the emerging market of copper bullion. We bring together the finest products from the biggest names in this young industry, as well as unique products from smaller home-spun mints. We are always working to acquire new products as we discover new manufacturers, and strive to maintain a solid product line. We also expect to begin manufacturing our own unique Copper Cave products in the near future.
To acquire any sort of variety of copper bullion prior to the development of The Copper Cave, an interested investor would have to place numerous separate orders from different mints and makers. Since copper is a heavy product, the cost of shipping multiple small orders added up quickly. Now, with products from over a dozen manufacturers all in one spot, the copper investor can place a single order and pay just one low shipping charge.
Why Copper Pennies?
The Copper Cave is proud to offer many different options for the copper bullion enthusiast. One of the most economical choices in today's market is copper penny bullion. Copper pennies are currently the lowest cost form of copper with guaranteed purity.
Pennies minted in the United States prior to and during the first part of 1982 are comprised of 95% pure copper, minted and processed entirely in the USA. The remaining 5% of the alloy is zinc. Their content is backed by one of the most trusted institutions in the United States, the US Mint, and they are universally recognized.
The melt value of the copper contained in a copper penny now exceeds the face value of the coin by more than double. For the current melt value of US copper pennies, as well as many other world coins, visit our friends at CurrencyDebasement.com
In addition to low initial cost, copper pennies have the added benefit of a built-in price floor. Unlike most other investment options, copper pennies have a cash value no matter what happens in the commodity market. At the very least, a penny can be spent at face value. Copper pennies also have unlimited upside potential, as their intrinsic value soars as the price of copper increases.
There is currently a melt-ban in place protecting US pennies from exportation or melting within the country. However, there is little or no reason to melt copper coins. In their current state, copper pennies are easy to identify and have a known purity. If melted into blocks, there would be no identifying marks and no guarantee of content to facilitate trade. Even in today's booming metals markets, US coins minted prior to 1965 containing 90% silver are still traded in their original form. As the price of copper rises, pennies may be traded in future years just as "junk" silver coins are traded today.
We have also expanded our base metal coin offerings to include Canadian copper pennies, British and Mexican copper coins, and .999 pure nickel coins from Canada, France, and the Netherlands.
Why are Copper Bars so Expensive?
There are several factors that lead to what appear to be high premiums on copper bullion when compared to the spot price shown for paper markets.
The first factor is that copper is difficult to process. Unlike silver and gold, which melt very nicely and do not oxidize easily when molten, copper oxidizes readily when heated. It requires the use of special techniques or chemicals to produce pure copper without bubbles or contaminants forming.
As a result of this extra handling, pure copper is difficult to obtain anywhere close to the raw market trading price unless you have a contract to take regular delivery of multiple tons each month. In more realistic quantities, pure copper stock often runs in excess of $6 - $8 a pound. Factor in the expense of processing, sizing, finishing, stamping or engraving, and shipping, and the price has reached the level you see on the website. The Copper Cave is proud to offer some of the most reasonable prices in the industry, with the added benefit of having a wide variety of products available in one place.
While there is a premium over the spot price for copper bullion, the same is true for silver and gold. In this market it is not unusual for the premiums on silver coins to exceed $2 - $3 per ounce, and gold is regularly selling for $50 - $60 an ounce over spot. Looking at our popular 1-kilo size copper bars in terms of ounces (32.15 troy ounces), the premium over spot on copper is under 25 cents per ounce, significantly less than the premiums on both silver and gold.
Another factor to consider is an exit strategy for any copper investment. Using the paper spot price as the only exit value of a copper bullion bar is flawed. Most people do not plan to sell their silver or gold coins to a refiner because they have value beyond just the spot price in their current form, so why sell copper bullion bars to a scrap yard? Copper bars can be resold to other individuals, resold on eBay, or sold back to a dealer like The Copper Cave.