Skip to comments.Why You Need to Own Nickels, Right Now
Posted on 02/06/2011 4:25:44 PM PST by blam
Why You Need to Own Nickels, Right Now
Saturday, February 5, 2011
On November 11, 2010, I wrote in the EPJ Daily Alert:
Back at the commodity level, copper is the latest to hit a record at $8,966 a ton. Copper is certainly not a "goldbug" play and is simply an indicator of economic (inflationary) demand. At some point, nickels, which are mostly made of copper, will start to disappear from circulation.
There's right now 6.2 cents worth of metal in a nickel [Note the value is now up to 7.2 cents.-RW]. When I run into someone that does not have a strong background in investing, I now tell them to buy nickels. You need storage space and a strong back to move them around, but a $100 box of nickels (roughly the size of a very large brick) can be lifted without a problem. You can stack plenty of "bricks" on a hand truck.
What's great about this investment is that there is no downside. In the unlikely event that there is no inflation, you can just spend your nickels... again, this is a great conservative investment...I fully expect the coins will eventually climb in value to at least double their 5 cent price.
The government has made it illegal to melt them down, but you will never have to do anything close to that. When you need to liquidate, just sell them to a numismatic dealer.
Gresham's law (bad money drives good money out of circulation) will take over at some price point and the coins will simply disappear from circulation, just like the pre-1965 silver content dimes and quarters have, and trade at much higher prices.
Those silver dimes now have over $2.00 worth of silver in them, the quarters have roughly $5.27 worth of silver, and you will never find one in circulation. The current nickel has 7.28 cents worth of metal content (mostly copper) in it. At some point they will disappear from circulation.
Indeed, that may not be far off into the future, if the story starts to get around about nickels the way it seems to be.
Financial author Michael Lewis told a story about a huge nickel investor, this week on the television show, The Colbert Report. The must see video is here.
Note: You can track the metal value of nickels and other coins at Coinflation.com.
I’m going to start asking my customers to pay me in nickels.
Copper is at record highs.
There are 146 copper pennies to a pound. Copper is about $4.50 a pound. Therefore each copper penny is worth about 3 cents.
>>Why You Need to Own Nickels, Right Now<<
To play the nickel machines at the casinos.
I don’t believe they’re solid copper anymore.
Except that they're now made almost entirely of zinc, I think.
I'm sure someone will be along shortly to correct me if I'm wrong...
OMG There will be a run on the banks tomorrow to buy every roll of nickels in the vault.
The downside is that thieves come out of the woodwork to take advantage, stripping homes and businesses (vacant or not) of copper wiring, plumbing, A/C compressors, etc. Even bronze Legion markers at cemetaries are stolen for scrap value.
Ha ! Soon they’ll have to make pennies out of paper. Oh wait ...... that’s reserved for the Dollar.
If you filled Christiane Amanpour’s nose full of nickels, she’d be worth a fortune!
True but only the pre-1982 pennies have copper. New pennies are zinc with a copper skin.
I've done three random evaluations in this area and have discovered that about 10% of the pennies in circulation are pre-1982.
That's true...same around here. Good photo identification is now required around here at scrap yards.
Yeah, dammit. If this goes viral it will be sooner than expected. I was hoping to have a few more months of quiet accumulation.
1) A "new improved" nickel made of something worth around a penny (I've seen foreign coins made out of aluminum(!!!))
2) The government decrying "hoarding" - as they busily melt down the nickels they have. (They did this during the silver coin "shortage" when the clads replaced the "real stuff".
Starting in 1982, the pennies have been copper-coated zinc.
For a long time now, I’ve been saving the pennies dated 1981 and earlier. The oldest one I’ve found in my change was dated 1910.
All 1981 and earlier pennies go into a jar, or should I say jars.
Pretty soon we will have paper quarters and dimes.
I’ve been buying nickels for a while. I buy 20 bucks worth at a time because I don’t want them to ask any questions.
Why bother with a wheelbarrow when you can buy the copper ETF COPX.
Robert Wenzel: Back at the commodity level, copper is the latest to hit a record at $8,966 a ton... At some point, nickels, which are mostly made of copper, will start to disappear from circulation. There's right now 6.2 cents worth of metal in a nickel [Note the value is now up to 7.2 cents.-RW].:') Thanks blam. What we need in the White House is another FDR, who'd call in all the nickels.
Yup. The one we have just accumulates idiots.
To say I'm displeased with this posting is putting it lightly.
I think you've missed the whole point of the article.
They are mostly made of zinc
Is this article saying to buy current-issue nickels or silver nickels from the pre-junk coin era?
Only problem is it is a federal crime to melt nickles.
Barney Miller — “The Child Stealers” — Season 6, Episode 15 — Thursday January 24, 1980 — “A self-proclaimed time traveler tells Harris to fine tune his stock portfolio”
The time traveler told Harris that a huge future precious metals strike destroyed their market value, and the entire world switched to a zinc standard, so Harris calls his broker and springs for a couple of tons. :’)
The ones made after 1981 are. The earlier onesa re copper.
Nickels were never silver, always nickel. Hence, larger than the silver dime for half the value (a less valuable metal.)
Ok, I’ve worked the math out based on the latest spot prices for copper and nickel and the US Mint’s formulation for nickels at 25% nickel and 75% copper. I cleaned out my change drawer and weighed 35 nickels on a kitchen scale. The results:
35 nickels weighed 6.1 oz or 0.0109 lb
Scrap Copper at $4.5666 per lb
Scrap nickel at $12.7896 per lb
$4.5666 * 0.0109 * 75% = 3.73 cents copper
$12.7896 * 0.0109 * 25% = 3.49 cents nickel
= about 7.2 cents total per coin
Not in Canada, Mexico, Cayman Islands, Bahamas, etc. etc. (?)
Not totally true. 'Wartime nickles' minted 42-45 are 35% silver.
Ping for the poor man’s investing. :)
During 1942-1945, the US had silver nickles.
From mid-1942 to 1945, so-called Wartime composition nickels were created. These coins are 56% copper, 35% silver and 9% manganese.
Not just minting - factor in transportation costs from various mints to all the branch banks, and then onto stores and businesses. They end up languishing in jars and coffee cans or under the couch.
Current issue...the nickels you presently have in your pocket.
35% silver, 56% copper, 9% manganese
Total Weight: 5.00 grams
Comments: World War II prompted the rationing of many commodities. Nickel was highly valued for use in armor plating, and Congress ordered the removal of this metal from the five-cent piece, effective October 8, 1942. From that date, and lasting through the end of 1945, five-cent pieces bore the regular design but were minted from an alloy of copper, silver and manganese. It was anticipated that these emergency coins would be withdrawn from circulation after the war, so a prominent distinguishing feature was added. Coins from all three mints bore very large mintmarks above the dome of Monticello, and the letter 'P' was used as a mintmark for the first time on a U. S. coin. [ ? ]
The House debated on the legislation and finally voted yesterday to change the metallic composition of the penny and 5-cent nickel to a less expensive copper-colored steel.
BTW, Freeper Travis McGee has been telling us for years to stock up on nickels.
gotcha beat....we’ve got a wheat 1903 copper penny!
Considering they didn't start making Lincoln wheat-ears till 1909, your penny is probably worth a fortune.... /grin
Geez, we'll be rich. Everyone will have a cold-fusion reactor at home, eh? (They'll need my nickels)