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 Replies: 9 / Views: 1,749 |
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Valued Member
United States
78 Posts |
I am confused about all this discussion over the last few years about hording coins - most specifically nickels. I am not bashing anyone for doing this, I am just curious why because I am probably missing something. lets use the figures from today's (124) Not Allowed - Auto-Removed on a 1946 - present Jefferson nickel. the composition of this coin is 75% copper and 25% nickel - and here is the break down (copy and pasted): as of 11/21 1. Calculate 75% copper value : (3.3017 Ã- .00220462262 Ã- 5.00 Ã- .75) = $0.0272958 2. Calculate 25% nickel value : (8.0440 Ã- .00220462262 Ã- 5.00 Ã- .25) = $0.0221672 3. Add the two together : $0.0272958 + $0.0221672 = $ 0.0494630so one nickel has a composition value of ~.049 cents - almost face value. Why is everyone hording for the nickel (metal) value? if you send nickels (coin) off to be melted - you are only going to get the amount of nickel (metal) in the coin - not both copper and nickel (metal). So nickel would have to more than double to even get the face metal value out of it. Are we betting that nickel is going to shoot for the moon any time soon? is there a shortage?  sorry for any spelling errors |
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Rest in Peace
United States
4078 Posts |
Interesting question. I believe most hoarders are hoping for copper to increase in value. Last time I knew, some of the major copper mines in Arizona and Michigan are either closed or at a limited production. These mines are losing out to copper mines in Chile, China and other foreign markets, thus keeping copper value down.
Not sure about nickel production.
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New Member
United States
21 Posts |
Not to long ago, less than a week in fact.... melt value of the nickel was slightly above face value. when the price of nickel and copper goes up, the value will go above face again.
moot point until the gov A. changes the composition, and B. removes the ban on melting them.
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Valued Member
United States
421 Posts |
Yes I agree with you on those numbers it is the same way with pre-65 silver coinage. They only give you the silver value not the other 10% of the composite on top of the silver. But with the silver being a high as it is now, I dont think people really care. I agree silver isn't as high as it has been over the past 3 months but it is moving.
As far as nickels not sure whats up with that. I could see copper pennies, but the government really doesn't want us to melt them down. But I guess thats what they do with the common/junk silver. which interns drys up the market making semi/keys rise in price.
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Valued Member
 United States
78 Posts |
Not to long ago, less than a week in fact.... melt value of the nickel was slightly above face value. when the price of nickel and copper goes up, the value will go above face again
Holdem -
this is where I get confused because some people I talk to think if they send off a coin of any composition to be melted - they are going to get the melt value of that coin. this isn't true unless you send off 100% composition coin. again - if your coin is 75/25 copper and nickel (like the jeff. nickel) then you are going to get either the 75% copper or the 25% nickel - not both. You won't ever get the full melt value of a coin if it is composed of more than 1 metal. Not trying to be rude or mean - again I'm just trying to understand everyone's logic on the hoarding.
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Pillar of the Community
United States
721 Posts |
I agree Indianaman79 - melt value is theoretical. If you were actually allowed to sell based on melt value, you would get either copper or nickel value. Old Canadian nickels, on the other hand, are almost pure nickel and worth saving. For US nickels, I would say that either the copper or the nickel value has to skyrocket in order for there to be a profit in hoarding. My humble opinion, of course.
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Pillar of the Community
United States
968 Posts |
The pre-82 copper cent hoarding makes more sense than the nickel hoarding. But even there, it would be a better bet to invest your money in the stock market as you'll make more money there than you would off your coins even if you could melt them.
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Valued Member
United States
78 Posts |
ok, thanks for the feedback because I thought I was missing something. I agree pre 82 penny hoarding makes a lot more sense to me than nickel hoarding. I thought my knowledge of smelting coins was flawed.
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Pillar of the Community
United States
4901 Posts |
Quote:
The pre-82 copper cent hoarding makes more sense than the nickel hoarding. But even there, it would be a better bet to invest your money in the stock market as you'll make more money there than you would off your coins even if you could melt them Exactly....the metal value in a nickel is 99.7% of its value ...........the metal content of a copper penny is 220.21% its value (of course they are harder to find in circulation) |
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Valued Member
United States
123 Posts |
I also agree that penny hoarding is the better bet, simply because:
1.) copper pennies are already worth over 100% above face
2.) I think that the production of pennies (along with subsequent lifting of penny melting ban) will be halted sooner than nickels.
That being said, I can't say that I really go out of my way with too much effort on hoarding copper pennies, but I do throw them in a box when I come across them.
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Replies: 9 / Views: 1,749 |
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Posted 11/21/2011 3:40 pm
