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Few questions about hoarding US nickels.

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TheDanMan
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527 Posts
 Posted 02/28/2011  8:41 pm Show Profile Bookmark this topic Add TheDanMan to your friends list Get a Link to this Message

I've been hoarding US nickels for about half a year now. I have over 1,000 of them. But I have some questions regarding this:

1. Does anybody know or at least have an idea when the US mint will change the metal composition of the nickel?

2. How long do you think it will take for the current 75% copper/25% nickel to disappear from circulation once these new nickels are out? Look at it like this: US Pennies went from 95% copper to 97.5% zinc in 1982. Now 29 years later, there are BILLIONS of these still in circulation (although that number is constantly shrinking). Anytime I buy rolls of pennies from the bank, each roll usually only has 10-15 copper pennies in it. I'm not hugely high on waiting another 30 years only to see that billions of the 75% copper/25% nickels will still be in circulation.

3. For any of you that live in or near Canada, do you guys generally find pre-1983 Canadian nickels in circulation? I know that those are 99.9% nickel and are worth about 12 cents each in melt value.

4. Assuming that it will one day be legal to melt US nickels and pennies, how does someone decide what metal they want to profit off of from the nickel? There's much more copper in the nickel than the nickel itself, but copper is much less per pound than nickel. If only US nickels were 75% nickel/25% copper, then it'd be a no-brainer. I do collect pre-2000 Canadian nickels (especially the ones that have 99.9% nickel, but I don't have many of those).

Valued Member
United States
279 Posts
 Posted 02/28/2011  9:14 pm  Show Profile Bookmark this reply Add GRR to your friends list Get a Link to this Reply
I think it would depend entirely on how the composition metals perform as to how fast any old coinage will disappear from circulation. Even if the mint changed composition this year, I'd expect to be finding pre-change coinage as long as the face value and intrinsic value differences remained small.

US pre 82 penny is approximately 3x face
US nickel is approximately 1.5x face

At these rates I don't see people pulling them too much yet. Silver has disappeared largely, but you're talking 23-25x face now.

Now if copper continues to rise and pennies get to 5x or 10x, I think you'd see them dry up pretty fast. Also just over time they will dwindle. average coin life is 30 years. Unless the government goes on some sort of metal recovery program I would expect to see the current composition nickels to remain in circulation for 30 years easy unless copper and nickel go on a run and push the intrinsic value up to 5-10x face.
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Canada
834 Posts
 Posted 02/28/2011  9:19 pm  Show Profile Bookmark this reply Add swrbxxx to your friends list Get a Link to this Reply
I live in Canada
and find that about 25% of a box are .999 pre 1981 nickels here
Pillar Of The Community
United States
12525 Posts
 Posted 02/28/2011  9:26 pm  Show Profile Bookmark this reply Add just carl to your friends list Get a Link to this Reply
1. No one including the government knows that or almost anything.
2. Until about the year 2743 approxiamately. Since your one of about
10 people that collect those in bulk.
3. Not to close and haven't seen a Canadian Nickel in about 10
years. Lots of your Quarters though.
4. You mean it's iligal to melt coins? Not sure most here know
that.

Mostly just kidding except for #4.
just carl
Edited by just carl
02/28/2011 9:36 pm
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United States
5970 Posts
 Posted 02/28/2011  9:36 pm  Show Profile Bookmark this reply Add eaglefoot to your friends list Get a Link to this Reply
I don't "hoard" anything simply because of "metal content".

Don't get me wrong, however, if I come across some junk silver......I'm ecstatic though ! ....

But, to me, it would just take up way too much space to "hoard" common circulating coins......whether Copper Cents, Nickels, or whatever.

Not sure if it applies here exactly.......but our friend Condor wisely said recently .... "If you want to invest in something, get a Mutual Fund"....

And to me, "investing" that much storage space, time, and effort stockpiling circulated coins, well.....one would just be better off placing that much enegy, money, and attention in another direction.
But to each his own....
Edited by eaglefoot
02/28/2011 9:39 pm
Valued Member
United States
109 Posts
 Posted 02/28/2011  9:43 pm  Show Profile Bookmark this reply Add goldnugget to your friends list Get a Link to this Reply
I only collect un-circulated Nickel's in Bags and rolls. Mainly the U. S. Westward Journey Series,plus the 2003 and 2006 Nickels of the Old and New Obverse and Reverse designs.
Edited by goldnugget
02/28/2011 9:49 pm
Pillar Of The Community
United States
4113 Posts
 Posted 02/28/2011  10:23 pm  Show Profile Bookmark this reply Add amida17 to your friends list Get a Link to this Reply
Carl- your #1 statement is probably most true.

Eagle- I agree just go get a Roth IRA or play the futures market. COLLECT what you like. Regardless of "value"
Stay brown and hail the Boognish.
Pillar Of The Community
United States
1381 Posts
 Posted 02/28/2011  11:11 pm  Show Profile Bookmark this reply Add Darth Anarchus to your friends list Get a Link to this Reply
Silver is much easier, and there is plenty to go 'round
Pillar Of The Community
United States
687 Posts
 Posted 02/28/2011  11:19 pm  Show Profile Bookmark this reply Add RollHunter to your friends list Get a Link to this Reply
In my opinion hoarding nickels is a waste of space and capital. The government may change the composition next year or they may never change it. When the change comes it will not be a surprise so you can always take whatever amount you want and buy nickels before the new ones are even produced let alone put into circulation. Let the bank hoard nickels for you.

I do, however, hoard pre-1960 nickels but that's more like a weird obsession than an attempt at investment.
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Australia
8627 Posts
 Posted 03/01/2011  01:42 am  Show Profile Bookmark this reply Add sel_69l to your friends list Get a Link to this Reply
I think Canadian pure nickel hunters are lucky. At five cents per coin, you can more than double your money in melt value of a very important metal. And there are no refining problems with the pure nickel coins.

The best thing a U.S. hoarder can do is ask a relative in Canada to do the 'dirty work' for them by taking these coins from circulation. The dollar numbers are obviously much better for Canadians than they are for the copper nickel hoarders in the U.S.

The race is on to beat the RCM doing the same thing!

I'll bet that within two years, the Canadian pure nickel Nickel will be extinct in circulation.

I will speculate only that the U.S. copper nickel Nickel will last about another six or seven years. At the same time, copper nickel coinage worldwide will gradually disappear from circulation.
Rest in Peace
United States
9104 Posts
 Posted 03/02/2011  06:26 am  Show Profile Bookmark this reply Add biggfredd to your friends list Get a Link to this Reply
US nickels can be machine sorted, but it's neither cheap nor fast. Canadian nickels can be sorted quickly by anyone with a magnet.
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527 Posts
 Posted 03/05/2011  6:52 pm  Show Profile Bookmark this reply Add TheDanMan to your friends list Get a Link to this Reply
I happened to come across this bill. Perhaps this could mean the end of the 75/25 nickel:

http://www.coinnews.net/2010/12/06/...-become-law/
Pillar Of The Community
United States
12525 Posts
 Posted 03/05/2011  7:16 pm  Show Profile Bookmark this reply Add just carl to your friends list Get a Link to this Reply

Quote:
the United States Mint will be granted new powers to:

And that is the important thing here. Granted new powers. Not to do anything, just the power to do something if they want to, feel like it, have nothing else to do, want to irritate coin collectors, etc.
With hoarding anything, coins, cars, planes, bombs, flashlight, etc. the important thing is WHY? What are you going to do with a ton of Nickels? Who will you sell them to? And who will carry them to whoever would buy them? And who will re-enforce your floors for all that weight?
Kind of kidding but really just not worth the trouble.
just carl
Pillar Of The Community
United States
622 Posts
 Posted 03/05/2011  7:22 pm  Show Profile Bookmark this reply Add willy13 to your friends list Get a Link to this Reply

Quote:
And who will re-enforce your floors for all that weight?

Basement.:)
Pillar Of The Community
527 Posts
 Posted 03/05/2011  8:07 pm  Show Profile Bookmark this reply Add TheDanMan to your friends list Get a Link to this Reply
You should read this, Carl. Maybe this will convince you to save nickels. =]

http://www.survivalblog.com/2011/03..._an_i_1.html
Pillar Of The Community
United States
8704 Posts
 Posted 03/06/2011  04:17 am  Show Profile Bookmark this reply Add Conder101 to your friends list Get a Link to this Reply

Quote:
Canadian nickels can be sorted quickly by anyone with a magnet

Except that some years of Canadian five cent pieces are made of steel. which is also magnetic. So you will have to visually separate the steel ones from the nickel ones. And then there are also the coppernickel ones which are also worth a premium.
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