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Thread: Nickels - the new precious metal ?

  1. #1
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    Default Nickels - the new precious metal ?

    don't want to throw off on the gold bugs or the silver hounds, but to add another coin / metal for consideration in your bag of tricks perhaps in addition to gold or silver:

    A Nickel has almost 7 cents (at today's prices) of copper/nickel.
    http://www.coinflation.com/coins/194...kel-Value.html

    It is the only US coin now in general circulation (other than older pre-1982 pennies and pre 64 silver dimes and quarters - good luck finding any of these) that you can readily acquire.

    They are easy to acquire - no mail order just go to your local bank. I get them $20 at a crack.

    They are cheap to acquire in small batches - you can get a roll of nickels for $2, or just save the ones you get in change.

    If we were post SHFT right now and trading at coinage metal content value, a nickle would be 7 cents, a silver dime about a 2 dollars, and a silver quarter about $5, so nickels might fill the low end barter transaction nicely.

    when a government stops making "pure" coins that have historically been minted, and starts issuing "hollowed out" coins like the current penny, dime, quarter the older pure coins immediately increase in demand.

    Nickels cost the US mint almost 10 cents to produce, so how long do you think they will keep that up?
    http://news.coinupdate.com/cost-to-m...y-nickel-0619/

    also historically when a currency is devalued because of hyper inflation the normal course of action is to issue new PAPER money and all old paper money must be exchanged for the new paper, but rarely are coins exchanged. I guess the reason is that nobody figures that the peasants have much in real coins other than the change jar and also that the task of receiving in all the coinage would weigh as much as a battleship, so it just isn't done.

    so suppose we fall prey to hyperinflation and the Federal Reserve decides to lop off a zero or two from the currency so that a $100 is exchanged for a new $1 bill - your nickle just jumped in purchasing value by 100X, effectively making each nickle worth $5.

    the real downside is that nickels are bulky. When I get $20 of nickels it is a fist full for each hand!

    the other downside is that you get some pretty weird looks by the bank tellers when you ask for $20 of nickels and nothing else, but there are so many bank branches around that I can go a couple months between visiting the same one.


    there is no downside, you can't loose money on this investment, you can always take that roll of nickels back to the bank and get some of that safe folding money!

  2. #2

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    Thats a good idea as long as Inflation does not occur and bread skyrockets to $30 a loaf after SHTF. But what about if prices of metal falls along with the value of currency like during ww2? then those thousands of dollars you spent investing in nickels for there melt value become useless in the fact that you could have bought supplies with that money. And for the melt value, the nickel is worth $0.068 at todays high metal prices while just last year they were worth only $0.04 in metal value and worth $0.09 in 2007. That seems too volatile and too much of a gamble to me. as of now its VERY illegal to melt currency for their metal content and unless you bought .999 pure coins and melted them yourself because refining the copper from the nickel becomes almost impossible for a do it yourselfer, and in trade, others would know that if you trade them nickels for their metal content then they now own metal with no way to extract the 2 types. Buy the metals separately. Nickel, copper, tin, silver bullion, etc... all refined then you would have more of a bargaining tool. You can buy 1 kilo .999 copper bullion for around 30 bucks and 1 ounce .999 nickel for around $20. I'm no expert on S hitting the F but In all likely hood the only metals that would hold their value would be precious metals like gold, platinum, and silver as there would be an abundance of scrap copper and steel

    just a scrap haulers 2 cents~~er... 5 cents.

  3. #3
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    Explo I had heard this story a few weeks back somewhere. I didn't give much thought to it at the time. However your theory on coins during a reissuance of currency, which I beleive to be the absolute truth to this point in time, seems to be a very good idea. We always save our change for vacations or some larger purchase and it's about time to count all that up. It's a great way to save money and should a currency swap take place, a nice way to make a profit. Thanks for the update.
    Greater love hath no man than this, That a man lay down his life for a friend.
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  4. #4
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    jfharlow,
    you are correct it is illegal to melt any US coin.

    and it is possible (althought IMHO unlikely) that the scrap value of the base metals in a nickle could fall below 5cents, but if that happens, you will just have to spend them cause they will still be worth 5 cents - what you paid for them. That is why there is no downside.

    and I am not advocating spending thousands of dollars to buy nickels, i will probably stop at $500.

    all i am pointing out that gold and silver bullion or gold and silver coins aren't the only US coins one can purchase as an inflation hedge and that nickels have several attractive advantages.

  5. #5
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    What is your feeling about aluminum?
    Quote Originally Posted by jfharlow4530 View Post
    Thats a good idea as long as Inflation does not occur and bread skyrockets to $30 a loaf after SHTF. But what about if prices of metal falls along with the value of currency like during ww2? then those thousands of dollars you spent investing in nickels for there melt value become useless in the fact that you could have bought supplies with that money. And for the melt value, the nickel is worth $0.068 at todays high metal prices while just last year they were worth only $0.04 in metal value and worth $0.09 in 2007. That seems too volatile and too much of a gamble to me. as of now its VERY illegal to melt currency for their metal content and unless you bought .999 pure coins and melted them yourself because refining the copper from the nickel becomes almost impossible for a do it yourselfer, and in trade, others would know that if you trade them nickels for their metal content then they now own metal with no way to extract the 2 types. Buy the metals separately. Nickel, copper, tin, silver bullion, etc... all refined then you would have more of a bargaining tool. You can buy 1 kilo .999 copper bullion for around 30 bucks and 1 ounce .999 nickel for around $20. I'm no expert on S hitting the F but In all likely hood the only metals that would hold their value would be precious metals like gold, platinum, and silver as there would be an abundance of scrap copper and steel

    just a scrap haulers 2 cents~~er... 5 cents.

  6. #6
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    I don't go out of my way to purchase rolls of nickles, but I do seperate my pocket change everyday, throwing the nickles in one jar and the pre-82 pennies in another. I just don't see that much of a "barter value" to these types of coins.
    "A golf course is a willful and deliberate misuse of a perfectly good rifle range."

  7. #7
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    It'll happen... Same as it did with the silver.

    Pennies are worth more, but just PRIOR to 1982 (That was a transition year)

    With Nickles there's no need to sort...

    When the mint announces they are doing to the nickle what they did to the penny... GO to the bank.

  8. #8
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    It was actually about halfway through 1982 that the pennies changed. You can tell the difference rather easily by sight.

  9. #9
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    actually collecting pre-1982 copper pennies represent more of a spread between the face value and intrinsic metal value as the copper in those pennies is worth about 3 cents.

    the problem is you can't go to the bank and ask for a roll of pre-1982 pennies. You have to get a roll and pick thru it to find the copper ones or do like Sgt Survival is doing - which I do also.

    with nickels you go to the bank, hand over a dead president and you are done.

  10. #10
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    There's way more to the nickel than even its metal value, which doesn't even scratch the surface on these things. Yes, that $2 roll is worth $2.60, unless that roll contains coins from 1942-1945, which are 35% silver. The value of a single coin then is roughly $1 depending on spot. That's also assuming the 1944 you've found isn't a Henning's counterfeit... that coin is worth $15-20 depending on condition. A 1947 Henning's counterfeit is worth more, though I'm not sure how much. He counterfeited some other years too, but you probably get the point

    Apparently coins from the early 40's and 50's are also collectible, but I just found that out last night, and haven't researched it yet.

    Then you have Buffalo nickels, "V" nickels... all of them with numismatic value, and still found in bank rolled coins. I just got three Buffalo's from a roll yesterday.

    2004, 2005... Both years are two distinct design runs of commemorative coins that are limited production coins, meaning collectible... Premiums are apparently also paid on coins with 5-6 full steps on Monticello.

    This is just off the top of my head, and I've only scratched the surface. As for the pre 65 quarters, they are harder to find, but I've gotten 2 in the past week. I'd bet you'd be amazed at what your friends and family are sitting on and willing to just hand you even out...

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