Why You Need to Own Nickels, Right Now

Economic Policy Journal ^ | 2-6-2011 | Robert Wenzel

[blam]

Why You Need to Own Nickels, Right Now

Robert Wenzel
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.

[Freedom4US]

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.

[ExSoldier]

Bookmark

[blam]

"Is this article saying to buy current-issue nickels.."

Current issue...the nickels you presently have in your pocket.

[blam]

1942 - 1945 Silver Jefferson Nickel Value (United States)

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. [ ? ]

[blam]

Get you nickels now:

House Passes Bill For Steel Cent and Nickel(5-9-2008)

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.

[goodnesswins]

gotcha beat....we’ve got a wheat 1903 copper penny!

[kiryandil]

If that Italian cold fusion thing is the real deal, it's a nickel-hydrogen reactor. Shhhhhhhhh!

[kiryandil]

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

[blam]

"If that Italian cold fusion thing is the real deal, it's a nickel-hydrogen reactor. Shhhhhhhhh! "

Geez, we'll be rich. Everyone will have a cold-fusion reactor at home, eh? (They'll need my nickels)

[blam]

My local coin shop (Loop Coin) is selling 'everyday' wheat pennies at 100 for $4.25.

[Cacique]

btt

[DrewsMum]

bkmark

[jafojeffsurf]

I wrote an article about this in our local paper a month ago and my bank know me when I walk in. I have been getting 40+ dollars worth at a time for a while now. Funny thing is when I explained this to them the response was basically “Right!”.

He how laughs last laugh’s best...

[jafojeffsurf]

75% Copper and 25% Nichol, check this site out for more info: http://inflation.us/coins/

[Poison Pill]

I don’t believe they’re solid copper anymore.

Got to get '82 and older pennies

[tickmeister]

Lately, I keep all my change. Theory is that at some point, the dollar will be devalued, maybe 10 to 1 ala Zimbabwe. It would be impractical to replace all the coins immediately, so they should appreciate in value in direct proportion to the devaluation.

And if it never happens, they still spend.

[dennisw]

hmmmmm..

[july4thfreedomfoundation]

“gotcha beat...we’ve got a wheat 1903 copper penny!”

Are you sure it’s a “wheat” penny? The first year the “wheaties” were minted was in 1909, for the 100th anniversary of Abraham Lincoln’s birth.

Your 1903 copper penny should be an Indian head penny, no?

[goodnesswins]

Yes, after I posted that, and my response I realized it was an Indian Head....

[july4thfreedomfoundation]

A 1943 copper penny is worth a small fortune.

Pennies were made of steel that year because of the needs of the War effort. A handful of copper blanks were accidentally minted along with the zillions of steel blanks.
Bottom line....the few known copper 1943 cents are mucho valuable.

Of course, some criminal types over the years have taken ordinary 1948 copper cents and scraped off the left side of the number “8”, making a forged 1943 copper cent. Gotta watch out for those.....