Photo Credit: Joe Haupt
These 5 odd investments don’t rely on the stock, bond or real estate markets in order to make you money. Better yet, each one of these tantalizingly unusual assets is available for less than $100!
1) Pre-1982 U.S. Copper Pennies
Few people know it, but U.S. pennies aren’t made from copper anymore. In 1982, the U.S. Mint was forced to change the composition of the coin due to the rising price of copper. Consequently, pre-1982 pennies were made from an alloy of 95% copper and 5% zinc, while post-1982 cents consist of a solid zinc core that has been copper-plated (97.5% zinc and 2.5% copper). In 1982, both solid copper and copper-coated zinc pennies were struck.
This would all be rather academic, except that right now the price of scrap copper #2 is around $2.20 per pound (this varies according to location and scrap dealer). But it only takes around 154 circulated pre-1982 copper pennies, with a face value of $1.54, to equal one pound. So each pre-1982 penny is actually worth about 1.43 cents in copper scrap.
This presents the enterprising coin sorter with an arbitrage opportunity. According to estimates, pre-1982 copper cents represent around 15% to 20% of the remaining pennies in circulation in 2018, although this can vary considerably depending on geographic region. If you are willing to take the time to pick these copper pennies out of circulation, you can easily accumulate a significant stash of copper bullion at below market prices. And you can get started for only $5 and a trip to your local bank, or even just the loose change that is laying around your house.
There are, however, a couple downsides. First, the U.S. government made it illegal to melt down pennies (and nickels too) for scrap in 2006. That isn’t too much of an issue because rolls or bags of pre-1982 copper pennies can be traded for more than their face value without being melted.
The other problem is that the U.S. penny is not long for this world. Inflation has rendered the smallest of U.S. denominations practically worthless. In addition, the U.S. Mint hasn’t made a profit on the penny since 2005.
When the penny is finally discontinued, one of our era’s best odd investments will disappear with the lowly coin.
2) Indian Mughal Rupee Silver Coins from the 16th and 17th Centuries
Rare coins are a perennial favorite among alternative asset investors. Unfortunately, the very finest examples can often be prohibitively expensive. You don’t need to look any further than ancient Greek gold coins to verify this, where prices start in the thousands of dollars and only go up from there.
But what if I told you that a centuries-old, hand-struck silver coinage of tremendous beauty from one of the greatest empires on earth could be yours for less than $100? Allow me to introduce you to one of the finest odd investments you’ve never heard of: Indian Mughal silver rupees.
The Mughal Empire ruled the Indian subcontinent between the early 16th century and mid 18th century. The Mughals were not only extremely powerful, but also incredibly wealthy. In fact, the Indian Mughal emperors were considerably richer than Western European monarchs of the time, such as Queen Elizabeth I and King Louis XIV.
So it shouldn’t be surprising that the Mughals struck a magnificent silver coinage to match their exalted status. Mughal rupees were high denomination coins, each containing about 11 grams of nearly pure silver. This made them exceptionally heavy for their time – about 3 to 4 times the average weight of most contemporary European silver coins.
In addition to being impressively large, Mughal silver rupees also possess phenomenal eye appeal. These Indian artistic masterpieces deftly weave geometric borders, elegant decorations and flowing Arabic calligraphy together in an unrivaled numismatic tour de force.
But perhaps the best thing about these odd investments is their low cost. Prices range from around $40 or $50 for common types in Very Fine condition to $200 or $300 for scarce examples in pristine grades. However, discerning investors can easily find superb examples of these centuries-old Indian silver coins for less than $100.
3) Vintage Fountain Pens
Before the widespread adoption of ballpoint pens in the 1960s, every gentleman and businessman used a fountain pen. These little luxuries were often made from the most cutting edge materials of the time, including hard rubber, early plastics and stainless steel. Some examples were even made from sterling silver, gold-filled and, occasionally, solid karat gold.
The nibs of high quality vintage fountain pens were invariably made from solid 14 or 18 karat gold, while more modest specimens made due with palladium-alloy or gold-plated steel nibs.
Vintage fountain pens perfectly embody the zeitgeist of the mid 20th century. However, in spite of all their positive attributes, these odd investments were often overlooked until recently. Before the early 2000s, it was possible to find desirable vintage fountain pens from the 1930s, 1940s and 1950s at flea markets, garage sales and second-hand shops for only $5 or $10 each.
But as it became apparent just how special these pens were, prices inexorably rose. Even so, it is still possible to purchase desirable vintage fountain pens in good condition in the $50 to $100 range today.
Although a tremendous number of companies manufactured vintage fountain pens, if you’re shopping in the sub $100 price bracket you are most likely to encounter pens from U.S. mid-tier makers, such as Parker, Eversharp, Sheaffer and Wahl.
4) Artisan Hand-Poured Silver Bars
Most people think of silver bullion bars as, well…bullion and nothing more. But over the last decade, a veritable renaissance has bloomed among small precious metal fabricators. These companies, which are often family-owned businesses, have begun producing a variety of hand-poured silver bars that are actually miniature works of art.
Artisan produced, hand-poured silver bars are a far cry from the soulless, mass-produced struck silver bullion bars that dominate the precious metals market today. Instead, small-batch, hand-poured silver bars have soft, rounded edges, alluring pour lines and charming blemishes that make them irresistibly odd investments.
In fact, vintage poured silver bars made in the 1980s or earlier already trade for strong premiums among tangible asset investors looking for something intriguingly different. And I feel it is only a matter of time until artisan hand-poured silver bars start selling for elevated premiums over spot as well.
A single $100 bill can easily buy one of these hand-poured bullion masterpieces from a recognized fabricator like Vulture Peak Mines, Prospector’s Gold & Gems, Scottsdale Mint, Bison Bullion or SilverTowne. Hand-poured bars generally range in size from 1 troy ounce to 20 troy ounces, although anything larger than 5 troy ounces will cost more than $100 (with spot silver at $15 per ounce).
5) Vintage British Sterling Silver Liquor Labels
The aristocracy of 18th and 19th century Britain loved few things more than a glass of fine wine. Unfortunately, paper labels for wine and liquor bottles were not developed until the 1860s. Therefore, wealthy British lords and ladies had to find a way to distinguish the otherwise anonymous bottles of spirits stockpiled in their private stashes.
They accomplished this by using solid sterling silver liquor labels, also known as wine or bottle tickets. These small, decorative plaques were engraved with the name of the appropriate spirit and then hung around the neck of a bottle via an attached silver chain. Every well-appointed British Georgian country estate or stately London townhouse had its share of these upscale sterling name tags.
Although rendered technically unnecessary by the late 19th century, sterling silver liquor labels have continued to be made until the present day because of their elegance and high-end appearance.
Vintage sterling liquor labels produced from the 1950s through the 1980s are particularly interesting. These odd investments can be found inscribed with the names of a variety of different spirits, including port, sherry, whiskey, gin, brandy, bourbon, scotch and rum, just to name a few. So there is sure to be one that appeals to you, regardless of the kind of alcohol you enjoy.
In addition, vintage sterling silver liquor labels from the Mad Men era are significantly less expensive than their Georgian progenitors. While a late 18th century example might cost you $150 to $200, a fully-hallmarked 1960s or 1970s British sterling liquor label can be purchased for a modest $50 to $100.
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