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Forget Gold and Silver: Collect Nickles?

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  • Wed, Jan 18, 2012 - 07:31pm

    #1
    earthwise

    earthwise

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    Forget Gold and Silver: Collect Nickles?

 

I’ve heard/read other places that nickles are now worth more for their base metal content  than what is reflected in their face value. James Wesley Rawles writes here that inflation will exagerate this disparity and therefore hoarding nickles might be financially worhtwhile. 

Anybody thought of or considering this?

 

 

  • Wed, Jan 18, 2012 - 07:47pm

    #2
    JuanGalt

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    Yes, it’s been discussed here before…

Search under nickels, copper, copper or nickel investing, etc… It does make a good deal of sense.

Hedge Fund Manager Kyle Bass also talks about this allot. He bought $1M worth himself and tells the story in Michael Lewis’ book  BOOMERANG.

Just as has happened to the rest of the coinage, it is highly probable the US gov’t will change the metallic content in nickels (less copper)sooner rather than later as copper becomes more expensive. Dr. Stephen Leeb also makes a great case for copper’s growing scarcity. I recommend Dr. Leeb’s book RED ALERT for more on that subject as well.

Both of these gentleman have several podcast and You Tube interviews you can check out for free or simply visit your local library or bookstore and peruse stheir thoughts.

Hope that helps.

JG

  • Wed, Jan 18, 2012 - 08:15pm

    #3
    earthwise

    earthwise

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    Sorry for the rerun

 

 Ooops! My mistake.

I thought that this topic was most likely previously discussed, but when I searched ‘nickles’ on this site I got nuthin’. It woulda helped if I had spelled it correctly: ‘nickels’. Doh!!!

  • Wed, Jan 18, 2012 - 10:48pm

    #4
    AWR

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    Stranded value

 The problem with hoarding nickels and pennies due to their metal content value exceeding their face value is that it is now illegal to melt them down:

http://www.usatoday.com/money/2006-12-14-melting-ban-usat_x.htm

This is what I find so baffling about Kyle Bass’s big nickel purchases.  Jim Rogers was recently asked about this in an interview (can’t remember which one off the top of my head) and he couldn’t figure out why someone would hoard nickels either since it’s not legal to melt them down.

In other words, the difference between the metal content and the face value of the coin is “stranded value”.

  • Wed, Jan 18, 2012 - 11:13pm

    #5
    JuanGalt

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    Good point, I was unaware of that…

I’m assuming someone like Kyle Bass has some contingency for that (which he may not state in public). There is also the power of trade and barter based on people’s perception or acceptance of value for the coinage. In the future one may accept payment for something and ascribe more value to a real nickel than it’s nominal 5 cent value (which will be further eaten away by inflation over time). It’s very likely that the metallic value of coinage will exceed that of paper or “fiat value” for certain US bills sometime in the not too distant future. Look at what happened to      pre-1964 US silver dimes, quarters, half dollars and dollars. They are now worth multiples of the face value.

There’s also the fair question, at what point after the gov’t continues to enact hundress or thousands of laws that much of the public disagrees with (for example the Patriot Act, NDAA, SOPA, PIPA, mandatory vaccinations, natural food and supplement bans and restrictions, gun restriction, etc…) do people just begin to just say “FU” to the gov’t and ignore certain laws.

IMO, the laws of the land must have the clear consent of the majority of the people. Just because a corrupt and criminal congress enacts a law it does not make it right, just or representing the will of the people.

As the gov’t tyranny and corruption grows more people will fight back once pushed to the edge. Only the uneducated, naive, indifferent and easily corrupted will blindly follow the gov’t mandates down the rabbit hole. Unfortunately, that still is ALLOT of people, likely a slight majority for now. I do think more and more people are waking up though.

Turn off the news and don’t rely too much on mainstream press for your info. Do your own homework and thinking. Question things more, apply outside-the-box thinking and ask the question “WHY?” more often. Apply “Lateral Thinking” to your situation and problems. Prepare and learn to defend yourself in more ways than one. Good luck!

JG

RON PAUL 2012

DEFEND THE CONSTITUTION & LIBERTY

 

  • Wed, Jan 18, 2012 - 11:52pm

    #6

    Mirv

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    Who is John Galt?

Very good post, particularly the last 4 paragraphs.  Hmmmm what actions should we take?  I think that a deliberate and systematic focus on locavore (local production of food and energy) as a committed group is something we  can do now to get away from the banksters and government mobsters….

  • Thu, Jan 19, 2012 - 01:15am

    #7
    JuanGalt

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    Thanks Mirv, right on brother…

I agree, developing independence and sustainbility as far as food and energy is a critical part of the solution. I know it can be a difficult but forming phyles or “like-minded commmunities” helps. It’s very difficult to do all of this on your own.

Also, I highly encourage building home-based businesses that can operate worldwide via the web and as a back-up be able to provide products and services locally without over reliance on the web in case the web goes down or is censored.

Creating relationships with people that participate on boards like this, building consensus around mutually beneficial solutions and then creating exciting plans that inspires action and strategic execution is key.

Best of luck Mirv,

JG

  • Thu, Jan 19, 2012 - 03:03am

    #8
    ao

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    oh brother

JuanGalt wrote:

Hedge Fund Manager Kyle Bass also talks about this allot. He bought $1M worth himself and tells the story in Michael Lewis’ book  BOOMERANG.

He bought a million dollars worth of nickels?  That’s 114.8 tons!  Pray tell, where does he store this?

BTW, a friend of mine has a bridge in Brooklyn that he’s willing to sell cheap for the scrap iron.

  • Thu, Jan 19, 2012 - 03:39am

    #9

    Romans12.2

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    AO I agree that nickels are a tad weighty…

However we buy $100 boxes of rolled nickels from our bank almost every week.
We have them on the floor of every closet in the house!
Most people would not even notice that they are there….
As to the question of whether we would ever be able to melt them down, i have to admit, that part bothered me when we first read James Wesley Rawles blog about buying nickels.

But just today, We bought another bag of 90% silver dimes and paid $2.00 each…..and you can’t melt those either.
Just sayin.

  • Thu, Jan 19, 2012 - 03:42am

    #10
    JuanGalt

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    He stores it in some type of special vault of course…

Check out the first chapter of BOOMERANG for more on that story and the parts of RED ALERT for info about future copper scarcity.

By the way, Kyle Bass is one of the sharpest financial minds on the planet and has made hundreds of millions of dollars on bets and investments over the past few years. I would not discard him so easily. His track record speaks for itself.

He is about to make an obscene amount of money once Greece officially defaults on its debt. Something like 500-600 to 1 or better based on well-established bets going back a few years ago.

I think most astute investors would agree with most of his investment plays over the past few years and projections going forward.

He definitely qualifies as prepper (read about his ranch, PM holdings, guns & ammo purchases, etc…) and falls much more in line with Ron Paul’s stances on the economy as oppsed to the rest of the phony Rep & DEM establishment clowns. 

I’d check it out before jumping to conclusions.

JG

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