Coin roll hunting is a hobby that involves time, effort, and a small amount of beginning capital in order to purchase your first coins. Why bother to go to all of this trouble just to search through coins? What do coin roll hunters know to convince them to make the investment needed to start coin roll hunting? This article will explain why this investment will pay off.
|Coin roll hunting also produces coins with numismatic value|
Due to the Canadian government’s monetary policy, which is also the monetary policy followed by all of the large economies of the world, our money is continually being devalued by inflation. Inflation is the expansion of the supply of money, resulting in the devaluation of the currency. This currency devaluation means that it takes a greater number of units of currency to pay for goods and services. It is not necessary to go into great detail on this phenomenon. It is only necessary to understand that the inflation of the money supply results in the purchasing power of our targeted coins going down, while the metal value that they are made from goes up.
We only have to point to the specific coins as an easy way to demonstrate this. As of June 7, 2012, a 1962 Canadian dime, which, of course, has a face value of 10 cents, is worth about $1.72 based on its metal value. This is due to the fact that the silver content within the dime (Canadian dimes from 1920-1967 are 80% silver) makes the coin’s metal value much greater than it’s face value. Therefore, although silver coins are rarely found in circulation today, when silver dimes, quarters, half dollars and silver dollars are found through coin roll hunting, they provide their discoverer with a large windfall of valuable silver.
However, while silver finds today are few and far between, Canadians can uncover large quantities of copper and nickel by coin roll hunting pennies and nickels. These metals are found in circulation significantly more frequently than silver coins, and therefore is a consistent method of securing a good deal on the metals. As of June 7, 2012, a penny minted between 1942 and 1977 has a melt value of 2.39 cents. This is a remarkable 139% increase from the penny’s face value (to see which Canadian copper pennies to look for click here)! The same opportunity is available through Canadian nickels minted between 1955 and 1981. Since these coins are made of 99.9% nickel (yes, pure nickel bullion!), these coins have a face value of about 7.43 cents as of June 7, 2012. This represents a 48.6% increase over the face value of the nickel (to see which Canadian nickels to look for click here)! Even Canadian nickels minted between 1982 and 1999, which are made from 75% copper and 25% nickel, offer a good opportunity since their metal value is currently hovering right around its face value.
Coin roll hunters know these statistics and are willing to put the time and energy into coin roll hunting in order to take advantage of this prospect. They also know that the future is likely to see a continuance of the same monetary policy that has created this paradoxical situation, and hope to store coins now while they are still available in circulation. See the other articles on our website to learn more about coin roll hunting.