Believe it or not, there are people who are stacking and hoarding nickels. For what purpose you ask? Who the heck knows. Their thinking is that eventually a new nickel will come out making the old obsolete. But we’ve seen this with pennies and since 1982, the old pennies still have not been rendered obsolete.
They believe that they’re covered on two fronts. That if inflation takes off and five cents is completely worthless, then the coin’s metal will break them even. And if the dollar becomes strong, then the face value will make them even. Either way, it appears to be a great hedge on the surface.
For starters, you are not allowed to melt these nickels or transport them out of the country in mass, so liquidating that way is out. Also, copper and nickel are not undervalued, you can pretty much find copper anywhere, just look on the curb, people are constantly throwing out items with that stinky copper in it.
For illustration purposes, let’s say hypothetically that you could melt down those nickels, or sell them to the smelter, how much could it possibly be? Copper is an industrial metal, so if there’s not that much demand, then you won’t make out like a bandit. Sorry.
And even in a SHTF scenario, are you going to pay the gas station attendant in nickels? Wouldn’t Presidential Dollars be a better utility and much more concise?
Let’s say you trade that box of nickels ($100 per bank box) for five Silver rounds (at present prices), which do you think will have more demand in the future? Your copper which can be found…anywhere, or the Silver rounds for which there are ten thousand industrial uses – all important.
Look, if you want to store nickels, fine, but seeing how undervalued silver is, wouldn’t silver be the better buy? In my own opinion, don’t waste your time hoarding these five cent pieces, it’ll be a while before we ever run out of nickels.
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