how likely is a run on the banks?

[Fishhead24]

Post deleted by ahnuld


- copyright material is a nono

[The4Aces]

post 82 pennies are now worth more then a cent. No reason to not save both now.

[The4Aces]

actually they are worth slightly less than a penny. my mistake

[Fishhead24]

Here is how to calculate the value of PRE-1982 pennies..........(currently worth 2.26 cents in metal).




Using the latest metal prices and the specifications above, these are the numbers required to calculate melt value:


$3.4012 = copper price / pound on Aug 24, 2007.
.95 = copper %
$1.4365 = zinc price / pound on Aug 24, 2007.
.05 = zinc %
3.11 = total weight in grams
.00220462262 = pound/gram conversion factor (see note directly below)


The NYMEX uses pounds to price these metals, that means we need to multiply the metal price by .00220462262 to make the conversion to grams.



1. Calculate 95% copper value :

(3.4012 × .00220462262 × 3.11 × .95) = $0.0221535


2. Calculate 5% zinc value :

(1.4365 × .00220462262 × 3.11 × .05) = $0.0004922


3. Add the two together :

$0.0221535 + $0.0004922 = $0.0226457




$0.0226457 is the melt value for the 1909-1982 copper cent on August 24, 2007.

[AWoodside]

[ QUOTE ]
Here is how to calculate the value of PRE-1982 pennies..........(currently worth 2.26 cents in metal).




Using the latest metal prices and the specifications above, these are the numbers required to calculate melt value:


$3.4012 = copper price / pound on Aug 24, 2007.
.95 = copper %
$1.4365 = zinc price / pound on Aug 24, 2007.
.05 = zinc %
3.11 = total weight in grams
.00220462262 = pound/gram conversion factor (see note directly below)


The NYMEX uses pounds to price these metals, that means we need to multiply the metal price by .00220462262 to make the conversion to grams.



1. Calculate 95% copper value :

(3.4012 × .00220462262 × 3.11 × .95) = $0.0221535


2. Calculate 5% zinc value :

(1.4365 × .00220462262 × 3.11 × .05) = $0.0004922


3. Add the two together :

$0.0221535 + $0.0004922 = $0.0226457




$0.0226457 is the melt value for the 1909-1982 copper cent on August 24, 2007.

[/ QUOTE ]

This state of affairs could be pretty useful for the rhetoric of backed-currency advocates. An appeal to emotion that utilizes the penny situation might convince someone who isn't otherwise economically inclined. It's also interesting to note that, given current monetary policy, it's only a matter of time before we're in the same situation with zinc-backed pennies. I might try and calculate about how long this might be if I have the time later today.

[pig4bill]

[ QUOTE ]
ive read other investing forums and some are saying a run on the banks are possible

[/ QUOTE ]

There was a run on Countrywide bank last week. I haven't heard anything since then, so things must have calmed down and they were able to pay all withdrawals without closing their doors.

[ QUOTE ]
also i have money sitting in a money market account with smith barney that is not fdic insured, how risky is this?

[/ QUOTE ]

It depends on what kind of money market account it is. If it's the kinds that uses U.S. Treasury instruments, you're probably fine. If it's the high-yield kind, there is some risk. Recently some high-yielding money market funds were found to contain mortgage instruments that had tanked in value. I don't know if any funds have actually hit their depositers yet, but their assets are clearly worth less than the $1 a share that they "strive to maintain".

[Fishhead24]

Countrywide savings accounts are FDIC insured up to $100,000.......

[maxtower]

[ QUOTE ]
[ QUOTE ]
Most people are in debt anyway. No one saves anymore. With a credit based inflationary monetary policy, you need to be borrowing as much as you can handle, maybe more.

[/ QUOTE ]

explain? i need to be borrowing the max i can? why?

[/ QUOTE ]

I was kind of joking when I wrote this. I think saving is always a good idea. If you can borrow at a rate lower than inflation, then you should borrow, because you can pay it back when money is easier to get. This is like how people take advantage of the 0% balance transfer credit cards.

[Borodog]

Hey you penny guys; thanks. Interesting info. I did not know this before. It's interesting to know that the penny would survive demonetization of the fiat currency.

Anyone have any idea what the bullion values of other standard US coins are?

[gonebroke2]

[ QUOTE ]
Hey you penny guys; thanks. Interesting info. I did not know this before. It's interesting to know that the penny would survive demonetization of the fiat currency.

Anyone have any idea what the bullion values of other standard US coins are?

[/ QUOTE ]

www.coinflation.com

It is illegal to melt pennies and nickels for profit:
http://www.usatoday.com/money/2006-1...ban-usat_x.htm