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 Replies: 23 / Views: 4,848 |
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Pillar of the Community
Canada
5246 Posts |
The person who bought $1,000,000 worth of nickels seems to have wasted a lot of time and money. According to that graph, now the metal value is less than the face value. And, just think of the storage costs for 8 years...
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Valued Member
179 Posts |
Cool! Thanks for the info
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Bedrock of the Community
United States
17884 Posts |
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We could just have the dollar as the smallest denomination. If anything at all costs less than a dollar, we could just consider the change we should be receiving as a donation to the retailer. more likely such items would then come packaged 2 or 3 for a dollar, whatever was needed so there wouldn't be any change. The writer seems to have missed the fact that the government has been losing money making nickels for many years now. He is only considering the material cost and not the manufacturing/distribution expenses. The cost of making nickels has been in the 8 to 10 cent range for years. Quote:
The person who bought $1,000,000 worth of nickels seems to have wasted a lot of time and money. He would have to sell them for $1.3 million just to break even due to loss of purchasing power, and that is without considering 8 years of storage costs. Quote:
Would you be okay with a Yellow Nickel? Because with the price of nickel rising, it's likely the U.S. Congress will have to act to prevent the U.S. Mint from continuing to lose money by making money, The government has been funding studies (millions of dollars) to try and find a substitute for today's expensive coinage metals, especially for the cent and five cent for something like 8 years now. Their biannual reports are available and it seems they keep studying the same materials over and over again and keep deciding they won't work. the real joke is they are trying to find a material for the cent that will allow it to be made at a cost of less than a cent, when the manufacturing and distribution cost is already more than 1 cent. So they need to have a material available in thousands of tons, that has a price of less than zero. |
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Pillar of the Community
United States
2023 Posts |
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more likely such items would then come packaged 2 or 3 for a dollar, whatever was needed so there wouldn't be any change. I'd rather be able to buy one candy bar for less than a dollar and have change, than buy two and have to carry the other one around. If you're buying several different things at once (or are paying digitally), you don't need multipacks to make this work, and the need to round to the nearest dollar becomes less necessary anyway. And this really doesn't help people with less money to spend in the first place, where fractions of a dollar are significant. Edited by Alpha2814
10/25/2019 12:07 pm
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Valued Member
United States
128 Posts |
or, they could, make less of them? Do we really need millions of coins dumped into circulation EVERY YEAR when we still have coins from the 1940s in circulation (nickels, pennies) and the only reason the others are out of circ is the silver?
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Pillar of the Community
United States
789 Posts |
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or, they could, make less of them? Do we really need millions of coins dumped into circulation EVERY YEAR when we still have coins from the 1940s in circulation (nickels, pennies) and the only reason the others are out of circ is the silver? This is just too logical of a solution. As soon as it is announced the mint is making fewer coins, current circulating coinage will start to be hoarded because, you know, they aren't making as many of them. SO they are going to be worth a LOT of money . |
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Pillar of the Community
United States
2271 Posts |
Nickels are minted in quantity every year because this is how many are needed to make change.
Almost every year the economy grows a little so a few more coins are needed. In this modern age of credit card and electronic transfers this isn't as large a factor but it still exists many years. More importantly though hundreds of millions of nickels are "lost" every year. Five cents is so little money many are intentionally tossed in the trash or vacuumed up by a "housewife" with no desire to bend over and pick it up. Every car that goes to be recycled has dozens of coins lost in it and most of these will end up being recycled with the car.
Nickels are rarely spent by consumers and many are simply lost on their round trip from store to consumer, to bank, to store. Even Brinks now days appears quite adept at leaving a trail of coin everywhere they go. Houses full of coins burn or flood and the same happens to warehouses. Back when a nickel had real purchasing power people would work to retrieve one. Now they walk away. The Chinese make pants pockets that dump their contents so many end up on the ground or in sofa cushions.
While nickels are almost worthless and should be transitioned to small aluminum coins through large nickel sized aluminum coins they are still necessary to the economy because they are required to bridge the gap between the dime and quarter. In other words how do you get $5.15 change if there are no nickels. Would we be required to take four singles, one quarter, and nine dimes. What if the hot dog vendor doesn't have nine dimes or is poor at math? Who wants a fistful of change from every purchase?
Of course nickels as they currently exist are stupid but don't get me started on pennies.
Time don't fly, it bounds and leaps.
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Valued Member
United States
128 Posts |
Nickels are minted in quantity every year because this is how many are needed to make change.
Almost every year the economy grows a little so a few more coins are needed.
I sort of get that, but not really. The economy grows, and both virtual and real tokens for it (dollars or bytes in banking systems) are generated, but a dollar is always 20 nickels. The price of things is going to generate 1 nickel in change for some even dollar amount usually, for the 15% or whatever of people that pay in cash. The average joes spend them here and there or roll them up to the bank where they cycle through to business and change again. Most of them are in some kind of endless loop from bank to business to people and back again, a few are lost or stowed in a kiddy bank or dropped in the river etc, but I didn't say stop making them, I said make less (of all the coins). I think we would be fine minting 10-25% of what we do today in metal.
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Pillar of the Community
United States
3207 Posts |
By law, the mintage is set to match demand. Creating a shortage would inhibit commerce.
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Bedrock of the Community
United States
20753 Posts |
Such conversations are meaningless. Soon enough plastic cards will replace all currencies everywhere.
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Moderator
 United States
188770 Posts |
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Soon enough plastic cards will replace all currencies everywhere. I think smartphones will replace plastic cards before cards replace coins and currency.  Side note, they say that for the first time in 30 years vinyl is outselling the compact disc.  |
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Pillar of the Community
 United States
6514 Posts |
Great article. Thanks for posting.
Check out my counterstamped Lincoln Cent collection: http://goccf.com/t/303507 |
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Valued Member
United States
372 Posts |
Ok, What is a Vending Machine. I haven used one in over 20 years
goldnugget / Charlotte,North Carolina
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Pillar of the Community
United States
3325 Posts |
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Side note, they say that for the first time in 30 years vinyl is outselling the compact disc Easy to see why - I can't find new CDs very often. I'm the old fogey type - I like my money and music in a tangible, storable form rather than a file floating around in cyberspace. "Nummi rari mira sunt, si sumptus ferre potes." - Christophorus filius Scotiae
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Bedrock of the Community
United States
12840 Posts |
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Ok, What is a Vending Machine. I haven used one in over 20 years They're still everywhere; you must not get out much. You can buy a car from a vending machine these days. |
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Replies: 23 / Views: 4,848 |
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First Page
Posted 10/25/2019 08:17 am
