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Copper Rounds FAQ

 

 
A growing number of people are using copper as a hedge against inflation. The benefit of owning physical copper versus silver or gold is that it is cheaper and some investors believe it could have more upside potential over the next few years. This sentiment is based on the fact that supply is predicted to lag demand as developing countries like China, India and Brazil consume more of the world supply and manufacturers find new uses for copper as an alternative to other metals.
 
Per capita demand for copper rises as GDP per capita rises. Japan consumes around 12kg per capita, North America consumers around 10kg per capita and Europe around 9kg per capita. The large populations of China, India, Eastern Europe and South America are all consuming less than 2kg per capita - this is a huge indicator of what lies ahead for copper demand.
 

Copper can be bought and sold in many ways through futures contracts, Exchange Traded Funds, mining stocks and bars. Some coin collectors and gold and silver bullion investors see copper rounds as an attractive way to own copper and take physical delivery in a format that is easy to buy, sell, stack, store and count.

 

What are Copper Rounds?

 

Privately minted copper coins are commonly called “copper rounds” or “generic copper rounds”. Rounds usually have a set weight of 1 AVP ounce (28.3 grams of 99.9% copper).


People concerned with the rising price of base metals and commodities use 99.9% rounds as a store of value. Copper rounds are produced by a huge array of mints, generally contain 1 AVP ounce of copper and are struck in the shape of a coin, but have no status as legal tender. Rounds are available with many different designs.

 

Are Copper Rounds all made from 99.9% copper?

 

Many copper rounds have been struck over the years for all sorts of purposes including gifts, corporate incentives, promotional items, collectibles and investments. We recommend you confine your purchases to rounds that are individually hallmarked stamped for their exact weight and purity. All of the rounds offered by Westminster Mint are hallmark stamped and are guaranteed 100% genuine.

 

How do copper rounds differ from silver bullion rounds?

 

Silver is marketed in Troy ounces, 1 Troy ounce = 31.1 grams. Copper is marketed in Avoirdupois ounces, 1 AVP ounce = 28.3 grams.

 

I have noticed the premium above the price of the underlying metal is higher on copper rounds than on silver rounds why is this?

 

One reason for this is the current low price of copper versus silver. Westminster Mint charged the same premium/mark up for our silver rounds back when silver was unfashionable and shunned by investors at around $4 an ounce as we do today when silver is closing in on $50.00 an ounce. When you buy a round you are buying a finished fabricated product that has been transported, melted rolled, cut, stamped and treated.  Manufacturers charge from $0.50c to $0.75 to strike new copper, silver or gold rounds in bulk regardless of the value/price of the metal being struck. Dealers then place their own mark up on them.

 

Dealer margins and mark ups vary and are based on prevailing market conditions, supply and demand. Westminster Mint is competing with other copper round dealers for your business.

 

Will you buy back my copper Rounds? 

 

Westminster Mint will buy back your copper rounds at prevailing market rates. We make no representation about the future value of copper rounds or their suitability for your portfolio. Before making a purchase you should consult with your own financial advisor.

 

Do it get the physical copper or a paper certificate?

 

The copper rounds you purchase through Westminster Mint are delivered to you by fully insured mail.


May 02, 2011