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Old 02-15-2010, 08:57 PM
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Arrow Save Those Nickels...The Next "Precious" Metal?



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Great article...could it be the next PM for those with foresight? May be the next wave, sure a good way to go for those who can't afford silver or gold...what could it hurt?



Mass Inflation Ahead -- Save Your Nickels!
By James Wesley, Rawles -- Editor of www.SurvivalBlog.com
Updated, February, 2010


I've often mused about how fun it would be to have a time machine and travel back to the early 1960s, and go on a pre-inflation shopping spree. In that era, most used cars were less than $800, and a new-in-the box Colt .45 Automatic sold for $60. In particular, it would be great to go back and get a huge pile of rolls of then-circulating US silver dimes, quarters, and half dollars at face value. (With silver presently around $15.50 per ounce, the US 90% silver (1964 and earlier) coinage is selling wholesale at 11 times face value--that is $11,000 for a $1,000 face value bag.)

The disappearance of 90% silver coins from circulation in the US in the mid-1960s beautifully illustrated Gresham's Law: "Bad Money Drives Out Good." People quickly realized that the debased copper sandwich coins were bogus, so anyone with half a brain saved every pre-'65 (90% silver) coin that they could find. (This resulted in a coin shortage from 1965 to 1967, while the mint frantically played catch up, producing millions of cupronickel "clad" coins. This production was so hurried that they even skipped putting mint marks on coins from 1965 to 1967.)

Alas, there are no time machines. But what if I were to tell you that there is a similar,albeit smaller-scale opportunity? Consider the lowly US five cent piece--the "nickel."

Unlike US dimes and quarters, which stopped being made of 90% silver after 1964, the composition of a nickel has essentially been unchanged since the end of World War II. It is still a 5 gram coin that is an alloy of 75% copper and 25% nickel. (An aside: Some 1942 to 1945 five cent coins were made with 35% silver, because nickel was badly-needed for wartime industrial use. Those "War Nickels" have long since been culled from circulation, by collectors.)

According to www.Coinflation.com, the 1946-2008 Nickel (with a 5 cent face value) had a base metal value of $0.0677413 in 2008. That was 135.48% of its face value. (In recent months, with the recession, and a decline in industrial demand for copper, the base metal value of a nickel dropped below face value. But even at today's commodities prices, you will start out at "break even" by amassing a stockpile of nickels.) I predict that as inflation resumes--most likely beginning in 2011--the base metal value of nickels will rise substantially.

Rest of article here:

http://www.survivalblog.com/nickels.html
Old 02-15-2010, 11:52 PM
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Very true. I have met all types of metal hounds and stackers through the years and there are a few that have amassed hundreds of pounds of nickels to take advantage of a price increase in the scarcer strategic metal and the copper they are fabricated from. Surprisingly, there are also those that are saving the newer cents for the zinc they contain!

Although the melting cents and nickels is currently "forbidden", the law could be easily changed if a shortage of strategic metals occurred. The Mint is aware of the cost factor and it will not take much longer for the composition to be changed.

I used to think they were crazy but thought otherwise while waiting in line at a scrap yard with a load of scrap steel for which I received peanuts.
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Old 02-16-2010, 09:00 AM
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I know someone who has been hoarding nickels for years.
The concept of a shopping spree in 1960 is silly though when you are thinking about our inflated currency. My grand parrents used to have a mortgage in the 60's that was $60.
Today that would be more like $800. which would be a lot closer to the cost of a .45 auto.



Old 02-16-2010, 10:26 AM
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Originally Posted by American Chestnut View Post
I know someone who has been hoarding nickels for years.
The concept of a shopping spree in 1960 is silly though when you are thinking about our inflated currency. My grand parrents used to have a mortgage in the 60's that was $60.
Today that would be more like $800. which would be a lot closer to the cost of a .45 auto.



And they have to work for free every year to keep up with the diminishing value of our "money". The government won't come out and call it a tax, and institute it as one. So we work for free with no option. That's either slavery (being forced to work for free) or theft (the government taking some of your wealth without legal tax). All of this is necessary in order for them to maintain a financial cycle that chases debt instead of creating wealth. And we haven't even felt 1/4 of the inflation, as we have saddled the rest of the world with it by export.
Old 02-16-2010, 10:31 AM
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Originally Posted by temu View Post
Great article...could it be the next PM for those with foresight? May be the next wave, sure a good way to go for those who can't afford silver or gold...what could it hurt?



Mass Inflation Ahead -- Save Your Nickels!
By James Wesley, Rawles -- Editor of www.SurvivalBlog.com
Updated, February, 2010


I've often mused about how fun it would be to have a time machine and travel back to the early 1960s, and go on a pre-inflation shopping spree. In that era, most used cars were less than $800, and a new-in-the box Colt .45 Automatic sold for $60. In particular, it would be great to go back and get a huge pile of rolls of then-circulating US silver dimes, quarters, and half dollars at face value. (With silver presently around $15.50 per ounce, the US 90% silver (1964 and earlier) coinage is selling wholesale at 11 times face value--that is $11,000 for a $1,000 face value bag.)

The disappearance of 90% silver coins from circulation in the US in the mid-1960s beautifully illustrated Gresham's Law: "Bad Money Drives Out Good." People quickly realized that the debased copper sandwich coins were bogus, so anyone with half a brain saved every pre-'65 (90% silver) coin that they could find. (This resulted in a coin shortage from 1965 to 1967, while the mint frantically played catch up, producing millions of cupronickel "clad" coins. This production was so hurried that they even skipped putting mint marks on coins from 1965 to 1967.)

Alas, there are no time machines. But what if I were to tell you that there is a similar,albeit smaller-scale opportunity? Consider the lowly US five cent piece--the "nickel."

Unlike US dimes and quarters, which stopped being made of 90% silver after 1964, the composition of a nickel has essentially been unchanged since the end of World War II. It is still a 5 gram coin that is an alloy of 75% copper and 25% nickel. (An aside: Some 1942 to 1945 five cent coins were made with 35% silver, because nickel was badly-needed for wartime industrial use. Those "War Nickels" have long since been culled from circulation, by collectors.)

According to www.Coinflation.com, the 1946-2008 Nickel (with a 5 cent face value) had a base metal value of $0.0677413 in 2008. That was 135.48% of its face value. (In recent months, with the recession, and a decline in industrial demand for copper, the base metal value of a nickel dropped below face value. But even at today's commodities prices, you will start out at "break even" by amassing a stockpile of nickels.) I predict that as inflation resumes--most likely beginning in 2011--the base metal value of nickels will rise substantially.

Rest of article here:

http://www.survivalblog.com/nickels.html
Nickels are great break-even base metal investment. Of course, melting them or dissolving them in acid and precipitating out the two metals is illegal, but if SHTF, I don't think anyone will care.

Pennies from before 1982 are an even better bet. 95% copper, and they're worth a few cents. In a real dollar collapse, they will easily surpass a fiat dime and more. I have free labor sorting them, because I have two children. We sort LOTS of them. The bank doesn't even flinch anymore when I walk in to swap my rolls of searched pennies for their unsearched rolls, because many people do it looking for collector specimens anyway.
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