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 Replies: 22 / Views: 2,555 |
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Pillar of the Community
United States
2480 Posts |
 Fox, your source of information is incorrect. The current melt value a of non-war nickel is only 4.9 cents. |
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Pillar of the Community
United States
4901 Posts |
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Pillar of the Community
United States
2543 Posts |
I think he is thinking of the cost of manufacturing not the value of the composition itself.
It is illegal to melt pennies and nickels because it costs the gov't about 2 cents to produce and distribute a penny and 10.09 cents for a nickel , to replace them.
2 cents and 10.09 cents are manufacture and distribution costs, not value.
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Pillar of the Community
United States
4901 Posts |
He is correct with the copper cents. They have an intrinsic value of:
1909-1982 Cent (95% copper) $0.0224143
Moderns have an intrinsic value that is less than half a cent:
1982-2013 Cent (97.5% zinc) $0.0049764
Edited by Foxwoods Man
03/31/2013 08:43 am
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Bedrock of the Community
Australia
21788 Posts |
U.S. Nickels are only 25% nickel, unfortunately. I realise the cost to the U.S. Mint for the production of a new copper-nickel 5c. coin is now a lot more than 5c.
If you are going to save them for their nickel content only, refining costs would have to be considered.
That is not so with the pure Canadian Nickels, but I suspect that there are not huge numbers of them in circulation any more, just like you don't see many silver coins in American circulation.
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Pillar of the Community
United States
2311 Posts |
I'm just saving some nickels. Got 13 dollars in nickels. I have like 5 or 6 rolls of copper pennies. I going to keep all copper.
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Pillar of the Community
United States
2168 Posts |
I feel they are worth keeping. Some feel since they at least do have an intrinsic value of face value (has been higher than face over the past few years at times due to ni/cu values higher) I just think it cannot hurt to keep. As a small child during the 1960s and keeping those now very valuable coins, I just don't see a downside. There are quite a few that don't see the harm in keeping them,plus the potential for higher values in the future or should there be a collapse in our system. Like the 90% silver coins, melting does not have to be legal (in the 1960s there was a ban on melting the silver coins and it lifted) These nickels and even pennies could possibly be traded similar to the current 90% trading of pre 1965 silver. Just my thoughts many think it not so smart to keep the pesky nickels! There is a wealthy hedge fund manager that purchased a million dollars worth of nickels JUST in case!
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Pillar of the Community
Canada
2805 Posts |
But does it really matter if you can't actually melt them down? It's not like people are buying tubes of ASEs to immediately melt them down for industrial use (and it's the same thing with junk silver), even though silver has quite a few applications - you're just trading a bunch of shiny things because people have decided that what they're made of is worth something. I think most copper cent buyers are banking on the US government repealing anti-melt laws, or they figure that it's legal to give them to international buyers to melt (even if the number you can ship out of the country is limited). Or maybe they think the country's going to collapse and they'll need shiny things to barter for guns and motorcycles in the stylish post-apocalyptic wasteland. As long as there are buyers for them (whatever their reasons) they're worth keeping.
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Pillar of the Community
United Kingdom
4208 Posts |
If you guys could mint them for less than 5c (and that is probably not possible anymore) out of, say, zinc/nickel plated steel, then why not lift the melt ban? The mint would make money replacing them.
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New Member
United States
33 Posts |
I am surprised that no one has mentioned this. Hoarding nickels without the prospect of selling them at a premium is a money losing proposition because of inflation. Your $100 worth of nickels will drop in value each year with the rise in inflation. Even hoarding copper pennies could eventually become a money losing proposition unless you melt them illegally with the assumption that the government can't trace the copper. My personal opinion is that hoarding coins is similar to investing in metals that you hold at your home with the exception that the coins have a minimum value as currency if the value of the metal drops below the face value of the coin and that the coin has not been demonitized. Sometimes you win and sometimes you lose with te gambles you take on speculating. I hope all of my copper pennies that I have get me more than face some day. As far as nickels I'm not so sure the gamble is worth it but I do keep all the lewis and clark nickels that come my way.
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Pillar of the Community
United States
2480 Posts |
Along the same lines as Blue-M... While I'm having a great time sorting through my grandparents vast accumulation of old US coins, it might have been worth more today if they'd just put that money in a savings account with compounded interest. And most of the collection is silver-- not nickel or copper, which is what this thread is about. If you're saving cents and nickels as an investment... bad investment. There are a few key dates in our collection but probably not enough high value coins to offset the loss of compounded interest. |
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Valued Member
United States
213 Posts |
I've started saving them myself. Even if they aren't worth much in the future, there still isn't much to lose from keeping change.
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Pillar of the Community
United States
2168 Posts |
I agree. With interest rates so very low, not worth having in the bank. Look at Cyprus. Many think it could never happen here, we don't have a crystal ball and you never know. They will always be worth a nickel so you can never go below it. If you buy stocks or silver the value can go down. Just my thoughts all think differently. If everyone was saving nickels there would be less for those of us that really want to keep what we can.
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Bedrock of the Community
13014 Posts |
Quote:
If you buy stocks or silver the value can go down Same with copper pennies or the melt value of nickels, theyre all based on commodities. I understand the Cyprus fear too, you cant say something would never happen here. BUT honestly I dont see how pennies or nickels would help, most places dont even let you make small purchases in pennies much less lugging bucketfuls in |
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Pillar of the Community
United States
2168 Posts |
I guess it is because they are the only 2 pieces of our fiat money with an intrinsic value basically equal to or more than face. That's all. They are worth their face. only ones well of course except the silver coins. Just what some have decided to do. If everyone thought so and did so they, like pre 1965 silver would be gone asap! Some people think if the monetary system collapses the nickels (easier to accumulate) and pennies (have to pick through them and more bulk and trouble ) will at least have some intrinsic value. Paper will be good for burning. there is no premium now on the nickels and pennies unless you buy for a company out west (can't recall the name) or on ebay for pennies. |
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Replies: 22 / Views: 2,555 |
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Posted 03/31/2013 08:16 am
