Saving Your Nickels

[SICARIO]

Anyone read this article? I'm starting my small collection..

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[jdub75]

Interesting read. I can tell you I think that many banks would be happy to order an extra case of nickels for most 'nice' customers next time they place a currency order (which should be fairly frequently) at no charge to the average 'non business' customer. I think a case of nickels has $100 worth.

 

[Dan-Dee Sales Inc]

Who do we sell them to that would know that there is 75&#37; copper? Would scrap dealers really know that? I do not know if a precious metal dealer would buy them. I think that it is a pretty small investment to try it out.

 

[SICARIO]

I don't think there's much investment in them now, much like buying AR mags. But as soon/ or if they stop making the 25&#37; nickel nickels, they'll be worth much more. I went and bought some today, and they didn't charge any extra. I figure a few ammo cans of nickels is a small investment that could pay off, and if not, I'll use them to buy lunch for a few months...............

 

[james2562]

Before anyone goes jumping off the deep end lets do the math.
Beginning investment 1,000
Ending investment 11,000
Years compounded 46
APR is_________________________________________5.35&#37;
There are many better ways to invest your money.

 

[dave]

You are right James. I think SICARIO was pointing out the possiblity of a coin change due to the cost of materials in the nickels.
Try your scenario with a 69 Camaro.
Every year there are less and less.
But with nickels, its much easier for anyone on any budget to pick up a decent amount.

 

[trainsktg]

A few years ago when nickel was much higher, nickels were worth about $0.25 melt value. Nickel has tanked recently, so their melt value has dropped significantly too, but real close to face value depending on the spot price. Nickels are now probably like silver was when it became too expensive to mint coins in silver. Back then a silver quarter was worth a quarter, now its worth around $3.25 in melt value give or take. This is due solely to the government debasing our currency by printing unbacked bills, not due to appreciation in the value of the coin itself. This high price of nickel was what prompted Congress to enact laws prohibiting individuals leaving the country with more than $10 (I think) in nickels. Foreign governments and corporations were buying nickels by the millions for face value then melting them down and realizing a huge profit.

Nickels will never be worth more than their bullion value, but that value may climb over the next few years as the dollar collapses...probably good to have $100 worth as a hedge, but nothing more, at least in my thinking.

Keith

 

[Arkarayne]

Here's a question: how do you seperate copper from nickel? or do you plan on leaving that to forges or mints begging for the materials?

(IE, is it possible to seperate it yourself?)

 

[trainsktg]

Right now it is illegal to destroy coins that are still in circulation anyway, so melting them is not an option. The question is: what will these coins be worth in the future? If their 'melt value' (a term that denotes the value of the metals in them) becomes much more than their 'face value' (the denomination on the coin), then they would trade like any other bullion coin. It wouldn't be necessary to melt them to sell them.

Can you melt them at home? Sure. A small earth forge using basic materials and wood fuel would be fairly easy to construct...you could conceivable reach temperatures in the area of 2000F.

Keith

 

[SquatchWorks]

out of this article the one thing I picked up on was buying colt pistols for $60 at the time...

So I will invest in firearms!!! Not nickels!!!

 

[Boats]

Ammo cans filled with rolled five cent pieces will also provide a pretty good barrier to bullets too. Common hardened steel armor plate is 7.8g/cc in density. Pure copper is 8.9g/cc. Pure nickel is 8.8g/cc. Of course your 75/25 cupronickel coin is neither heat treated nor collectively bonded, but stacked in depth in an ammo can, they will easily defeat all small arms in any armor piercing loading at 30.06 and below in caliber.

However, rolled nickels are a cost prohibitive bullet barrier/wealth preservation option. A grand's worth of nickels only fills 5.5 ammo cans. With a standard ammo can being dimensioned at 10"L x 3.5"W x 7"H, backstopping a street facing wall 14 feet long to a bed shielding height of five feet would require 144 ammo cans. At about $8.00 per can that's $1142 in cans and $27,216 in stored nickels all weighing in excess of 2.5 tons.

Another added benefit of storing your wealth in nickels is that at 100g to the dollar, they soon become too heavy to haul off easily in the event of a burglary. A grand in nickels weighs about 220 pounds. A .30 caliber ammo can filled with 89 rolls of nickels will each weigh about 40 pounds. Most passenger vehicles on the road today cannot manage more than 800 pounds of cargo weight.

I would have to conclude that nickels have large downsides in storage weight and portability, and are a poor investment compared to even a barter/use good like ammunition.

Even with inflation, there are better ROIs out there for individual small investors than metal hoarding.

 

[chemist]

"If my nose were full of nickels...

http://www.youtube.com/watch?v=wWQTRyJ7-2U

... I'd blow all on you."

 

[SICARIO]

I think in a SHTF scenario, bullets and silver dimes will be the best type of currency/barter item. If the nickel followed the same path that the silver dime followed, It would also be a good bartering item.

That being said, I' plan to have stockpiles of ammo, and maybe one or two cans full of nickels maximum.

 

[Ronin]

out of this article the one thing I picked up on was buying colt pistols for $60 at the time...

So I will invest in firearms!!! Not nickels!!!

Yep, I'd rather put that money into 5.45 ammo---that stuff is cheap now but ain't gonna get any cheaper. Wish I had done more of that when 5.56, 7.62x39, and .308 was as cheap.

 

[Gunner3456]

In the about 1970 I was working in a bank. There were still quite a few silver coins in circulation and they were readily recognizable to people who handled money all day long. They would come in in batches as people cashed in their "coin bank." Every single teller was willing to sell me any silver coins at face value. They'd just walk up to my desk, hand me a coin, and I'd give them a newer coin of the the same value in exchange to balance their cash drawer.

40 years later the well circulated silver Morgan dollars are worth about $11, best I know. ?? The 50 cent pieces and dimes have appreciated about the same percentage. I don't consider that a get rich quick scheme although I'm happy to still have all of those coins. I would have done a lot better to have bought a nice 57 Chevy Bel Air Sport coupe for $1,000 or a nice convertible for $1,500.

I do believe we will see rampant inflation and I can't argue with buying silver or nickles, or ammo (made from expensive metals too and maybe even outlawed) for coming inflation, but I haven't gotten rich on the silver even at today's prices.

$.02

 

[Arkarayne]

Went through the 3 gallon water jug we call the coin jar, was about 1/4 the way full:

10 rolls of pre-83 pennies
1 roll of nickels
1 1962 Dime

took a bored night of couldn't-sleep, oldest coin i found was a 1945 wheat penny. was oddly fun.
Put the rolls in a chinese 7.62 ammo can that fits the rolls like a glove.
As i get change i'll set nickels, old pennies, etc aside. All else fails i'll cash em in and get something shiny or pay for a few lunches/dinners. it's low-brainwork thing to do that might (or might not) pay off one day that doesn't hurt to do if you got the space.

 

[jacknast76]

In the early 60's 1 oz of GOLD was $35. So $1000 of gold = 28 oz. 2010 = $28,000. Conversely had you bought $1000 worth of stock in a blue chip company like, IBM, Exxon, Merck or Mc Donalds, you'd be a millionaire.