Forces are gathering posted by VUMC409

[CSJournals-migration]

Can the cent and nickel hold on?

 

From a CNN article today.

 

http://business.time.com/2013/01/24/waiting-for-change-the-battle-over-the-u-s-penny/?hpt=hp_c3

 

It may be time to fight back.

 

Michael

 

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[Six Mile Rick]

I guess I'm on the right track. I have been keeping these MS67s out of circulation that I have and hope to get more!!! HeHe

[vumc409]

Rick,

 

Probably hedging a good bet buddy.

[jackson64]

There is another interesting aspect about this. Currently the US nickel has 7 cents+ worth of raw metal in it I believe. Currently, there is no point in hoarding them because as legal tender it is illegal to melt them as base metal or bullion.

 

However, if the nickel is made obsolete as circulating coinage, would it not also mean that those billions of nickels in circulation would become acceptable to trade for their metal content?

 

If so.......let's take a look at some math.......

 

a $2 roll of nickels has 40 coins-however- at 7c each that would be $2.80 per roll in bullion value.

 

a bank box of 100 rolls would cost only $200 but have a bullion value of $280--a pretty healthy % return on investment...

 

The downside of course is ( actually many, but let's focus on one of the big ones)..is that to make it worth the effort you'd probably want at least 1000 rolls or even 10,000 rolls of nickles. Ten Thousand rolls of nickles for $20,000..would net a nice $8,000 profit--but I imagine 10,000 rolls of nickels would take a pretty heavy duty forklift to manage them---definitely not something you buy as investment and keep at home or locked away---not only the size, but the weight for transporting ( if you found a buyer) would be pretty extreme.

 

Just some musings on a snow-covered saturday morning............