Coin Collecting: A Penny for Your Thoughts and Two Cents for Your Penny!

There has been a great deal of talk about the nations' coinage over the past ten years. Whether about design, metallic content or cost of production, nary a month has passed in all that time without something newsworthy garnering the attention of our collective conscience. But all of that discussion pales with regard to the phenomenon we are about to experience as we approach 2009.

While the coin-collecting community has become more and more aware of the revolutionary potential of the coming year, little has been said of the opportunities opening for everyone else. There are an estimated 10 to 12 million "serious" coin-collectors in the US - those who deal in coins as a business or hobby. Upwards of another 140 million Americans dabble in it: Most of these filling albums and maps with the new Statehood Quarters. In addition to this, and partly because of it, the new year holds the promise of a fascinating opportunity for those who recognize and take advantage of it. And there are several reasons why:

First, most of us have heard about the high cost of producing today's coins used for commerce: Nearly two cents to make a penny and almost a dime to create a five cent nickel. This economic crime has been going on for years as the costs of industrial metals, especially copper and zinc, have reached historically high levels. Many are unaware of the fact that since 1982, the penny has been made mostly from zinc, with a small coating of copper to provide the familiar color we prefer. The costs of copper being what they are and projected to become means that pre-1982 pennies are likely to be worth nearly twice their retail buying power just for the melt-value of the metal.

Second, in 2009 the US Mint will pay homage to the 100^th anniversary of the first Lincoln Cent by issuing four different designs of the coin throughout the year. This is likely to spark a renewed interest in the one-cent piece the way the Statehood program affected the quarter-dollar over the past ten years. This means another sharp increase in the number of new collectors competing with the existing collector base for a finite and ever-shrinking number of coins. In addition, the government has now passed legislation requiring the mint to use new and cheaper alloys for the production of pennies and nickels.

In short, the cumulative affect of these factors will result in an increasing interest in, and a corresponding increase in value for, a commodity which we have long taken for granted. How many households contain a jar or a nightstand tray of pennies that sits gathering dust? In 2009, each and every one of these coins, which are perceived by many as nearly worthless, are likely to yield a 200% return or more on their original value.

How many will be lining up to cash in on this opportunity? I know I'll be there - with all the cents I can find!