Wednesday, May 4, 2011

Portfolio Management: 3 - Savings Account

Today I have the next video in my portfolio management series where I go a bit more into what savings is and isnt and what I use it for.



EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.


Last night I was hopping around youtube seeing what other investing and trading ideas are out there. I know my way of doing things isnt the end all be all best way to do it. There are a lot of ways to fit different personalities and needs of each person. I like to hear what others are doing no matter how outlandish. I came across an interesting idea for the savings account...

Investing in pennies. Pennies?!? Yeah I know right. The 1982 and earlier pennies are made up of copper where as the newer ones are a zinc-copper mixture. With today's current price of copper each of these old pennies has a value of $0.025. Instant profit!
Well I can think of a real big problem.... liquidity. Who the heck is going to buy pennies off of you? They would have to take the time to go through each one to check the date to make sure you werent trying to steal from them.
After the haggling, is someone going to take the time to do that for a half a penny gain?

Silver is a bit different. 1964 and older dimes, quarters, and half dollars were 90% silver. You can get a couple bucks for a quarter so our reward vs time spent is a little bit better here.

So as an experiment I am going to go to my bank and get several rolls of coins.  2 quarters, 2 dimes, 8 pennies.  We will see what I can find.
Now I am under no false pretenses here. I am pretty sure the loose coins in circulation have been picked clean but you never know. Not only that but these coins would be 29 years old for pennies 47 years old for dimes and quarters. They are going to be used, lost, destroyed, and taken out of circulation.
However the nice thing here is it costs nothing but time. The coins that dont have the copper and silver in them that I want I'll just give back to the bank. Zero risk!
We'll see how this turns out.

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