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przemyslaw-radomski

Should I gather copper pennies and nickels?

April 13, 2012, 12:00 PM Przemysław Radomski , CFA

I’m already very invested in silver, gold and some mining stocks and would like your perspective on whether I should hoard copper pennies and/or nickels? My guess is their value will go up during the hyperinflation period.

Our best guess here is that if you have physical silver and gold and you have it in several places (geographical diversification) and you have some capital dedicated to other long-term investments and trading, then you can keep these pennies as a form of diversification into industrial commodities. We don't think that they would rise in value any more than precious metals (in fact less), but diversification benefits can justify holding them.

If the above assumptions are incorrect, then it seems that you might want to sell those pennies and invest the proceeds in silver, gold and platinum and diversify geographically.

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