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Why You Need to Own Nickels, Right Now
Economic Policy Journal ^ | 2-6-2011 | Robert Wenzel

Posted on 02/06/2011 4:25:44 PM PST by 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.


TOPICS: News/Current Events
KEYWORDS: coins; copper; economy; inflation; nickels; silver; survival
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To: blam

When non-copper nickels hit circulation, the Federal banks will themselves pull the old copper nickels so that the mint can reclaim the copper.


81 posted on 02/06/2011 9:50:20 PM PST by HiTech RedNeck (I am in America but not of America (per bible: am in the world but not of it))
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To: Zeppo

It’s illegal to export them as well.


82 posted on 02/06/2011 9:54:11 PM PST by joinedafterattack
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To: thecodont
"Back about 20 years ago I got a silver quarter in change out of a copy machine."

A friend of mine has a daughter who finds an old silver coin in change at the 7/11 where she works from time to time.

We think they get back into circulation through burglaries or that sort of thing.

83 posted on 02/06/2011 9:54:51 PM PST by blam
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To: matthew fuller
"So when is the last year that copper pennies were made?

1982

84 posted on 02/06/2011 9:56:08 PM PST by blam
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To: Intolerant in NJ
"I've got to go add a few more dimes to fill my WWII Uncle Sam Cash Register Bank which unlocks only when it reaches a total of ten dollars inside, and hasn't been opened since about 1945....."

Holy Moly...you're rich!

85 posted on 02/06/2011 9:58:20 PM PST by blam
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To: HiTech RedNeck
"When non-copper nickels hit circulation, the Federal banks will themselves pull the old copper nickels so that the mint can reclaim the copper."

Get'em while you can, eh?

86 posted on 02/06/2011 10:00:39 PM PST by blam
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To: blam

Thanks.


87 posted on 02/06/2011 10:02:15 PM PST by matthew fuller (My list: Bachman, Barbour, Bolton, Cain, Liz Cheney, Daniels, DeMint, Inhofe, Palin, and Pawlenty .)
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To: Blood of Tyrants

legally, you can’t melt down coinage....how do you make money from pennies or nickles if you can never use them for their mineral content.


88 posted on 02/06/2011 10:09:32 PM PST by cherry
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To: cherry
"...how do you make money from pennies or nickles if you can never use them for their mineral content."

They're bought and sold by weight at coin stores.

89 posted on 02/06/2011 10:15:41 PM PST by blam
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To: The Comedian; Joya

thx thx

ping to Joya;


90 posted on 02/06/2011 10:16:13 PM PST by Quix (Times are a changin' INSURE you have believed in your heart & confessed Jesus as Lord Come NtheFlesh)
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To: blam
We think they get back into circulation through burglaries or that sort of thing.

Either that or piggy banks getting raided for the first time in years.

We had a rough year before the latest boom, and the average $10 lot of pennies from the bank would have three or four wheat cents and was about half copper. Now, more like 20-30% copper and no wheaties.

A friend built a nice collection of Silver Certificates and US Notes working at a bingo hall about 20 years ago. A couple of little old ladies would bring them in every week to buy cards with. Some bills even had rust stains from the paper clip, and it is likely they remembered the depression and didn't trust banks still.

91 posted on 02/06/2011 10:17:46 PM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
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To: cherry
90% Silver U.S. Coin Bags

Each 90% silver bag contains either 4,000 U.S. quarters or 10,000 U.S. dimes dated 1964 or earlier...weighs approximately 800 troy ounces (or 54 pounds)...and contains approximately 715 ounces of pure silver.

One of the primary benefits of a 90% silver coin bag investment is that the bag has a built-in guarantee simply unavailable with most other silver investments: No matter what happens to the price of silver, the value of your 90% silver bag will never be worth less than its $1,000 face value.

92 posted on 02/06/2011 10:20:51 PM PST by blam
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To: The Comedian

In the old days, this crap had chocolate candy inside...


93 posted on 02/06/2011 10:35:01 PM PST by April Lexington (Study the Constitution so you know what they are taking away!)
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To: thecodont
Back about 20 years ago I got a silver quarter in change out of a copy machine.

That's nothing! I got a 1943 quarter in change at the local Big Box this past December. Darned near had a Holiday Heart Attack!

94 posted on 02/06/2011 10:42:29 PM PST by April Lexington (Study the Constitution so you know what they are taking away!)
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To: joinedafterattack
Only problem is it is a federal crime to melt nickles.

Not in Mexico, Senior! That porous border works both ways!

95 posted on 02/06/2011 10:57:42 PM PST by April Lexington (Study the Constitution so you know what they are taking away!)
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To: joinedafterattack
It’s illegal to export them as well.

It is also illegal to enter the United States without proper documentation...

96 posted on 02/06/2011 11:01:22 PM PST by April Lexington (Study the Constitution so you know what they are taking away!)
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To: Bloody Sam Roberts

ping. ask me re: 0M


97 posted on 02/07/2011 1:56:57 AM PST by Mrs. B.S. Roberts
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To: joinedafterattack
Only problem is it is a federal crime to melt nickles.

If we get to that point, the idea of this as a federal crime is going to be the least of our problems...

98 posted on 02/07/2011 4:20:30 AM PST by IncPen (Educating Barack Obama has been the most expensive project in human history)
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To: blam

Clearly, copycat copper capers create consternation.


99 posted on 02/07/2011 4:28:50 AM PST by Freedom4US
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To: CommieCutter; Oatka

I wouldn’t worry about the general populace catching on right away. Similar articles have been on the survival websites for at least a year: http://www.survivalblog.com/2010/02/letter_re_stockpiling_nickels.html


100 posted on 02/07/2011 5:19:16 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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