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 Replies: 28 / Views: 5,508 |
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Valued Member
United States
188 Posts |
I was lurking in another forum and ran accross someone theorizing that the mint may be panning to change the comp of the nickel within a year or two and that it will happen quick.
With that in mind, do you suppose now is the time to start building you MS from circ sets? Or is it just scare mongering?
Their idea, of course, was just to start hoarding all nicks as they are currently worth about 6 cents ea at melt.
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Pillar of the Community
United States
958 Posts |
nickles are one of the cheapest coins compositions there is.
I dont think it would be.
A copper penny is worth 3 cents melt value
A nickle would have to be worth 15 cents melt value to even be equal.
Nickle is a cheap alloy to make , doubt the price of nickle would go alot in te next 5 years to even make it a brak even thing to melt old nickles
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Pillar of the Community
United States
3294 Posts |
Nickels are mostly copper. Current melt on them is like 6 cents each or 1.2x face . On copper pennies it is 2.6 cents each or 2.6x face.
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Moderator
 United States
187702 Posts |
Quote:
Nickels are mostly copper. A fact that many overlook. A "nickel" is actually 75% copper and only 25% nickel. |
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Pillar of the Community
United States
958 Posts |
yes more copper but the cost is 5 times as much as a penny
five copper cents would = 12.5 cents at melt vale
one nickle ( 5 cents = barley over 6 cents )
IMO why hoard nickles when plenty of copper pennys are still out there to be hoarded
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Pillar of the Community
United States
2049 Posts |
Hoarding nickels takes up less space compared to cents, but both are a win in terms of face value vs intrinsic value. Both work well as hedges against inflation and deflation. :)
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Pillar of the Community
United States
687 Posts |
Now isn't the time. While I agree that the gov't will change the composition of the cent and nickel soon, it's a waste to start hoarding nickels now. You can't sell them for more than face and when the composition changes or a change is announced, the "good ones" will still be available for a long time.
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Valued Member
 United States
188 Posts |
OK, good. They was makin me feel like I was crazy! LOL You pretty well summed up what I was thinking.
Some folks can be quite persuasive when they are typing. LOL
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Pillar of the Community
United States
591 Posts |
lol Yeah I think there are enough 1964 nickels that you would always have something to hoard. I hate buying rolls and half of them are 1964.
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Pillar of the Community
United States
3592 Posts |
Nickels are much easier to hoard than pennies simply because you don't even need to search the dates. And if you think about melt value...a thousand dollars worth of nickels would theoretically net two hundred dollars profit.I'll bet I could gather a thousand bucks in nickels faster than anybody here could gather a hundred and fifty in copper pennies from circulation to make roughly the same profit.
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Valued Member
United States
119 Posts |
Hey Sprucansailor I asked a similar question a month or so ago. The best advice I was given (sorry I forgot who said it!) was to wait until the Mint announces it will change the composition, then go to the bank and by as many boxes as you want before they change the composition.
Personally, I'm already collecting a roll of each year and mintmark as I'm roll searching.
AC
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Pillar of the Community
United States
687 Posts |
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I'll bet I could gather a thousand bucks in nickels faster than anybody here could gather a hundred and fifty in copper pennies from circulation to make roughly the same profit. Are you planning on melting them yourself? Because that's the only way you can even hope to make a profit on them. And an illegal profit at that. You can sell copper cents at a premium right now, but you can't sell nickels at a premium. You won't be able to sell nickels in bulk above face until Congress passes a law authorizing a composition change or until the melt ban is lifted. Hoarding them now makes no sense economically - it's the equivalent of storing cash under your mattress. Anything you can use $1000 for now that will make you money (even putting it in a savings account) is better than squirreling away $1000 worth of nickels. |
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Pillar of the Community
United States
1027 Posts |
Don't forget that no one is going to give you anywhere near copper, zinc, or nickel spot price for coins, even if it was perfectly legal. Just look at gold. You can't get spot for 14K gold because it has to be refined back into its component parts to sell at spot. The same is true of zinc/copper/nickel/tin coins. They have to be melted and separated into pure metals to get spot prices and all that costs money to do. Also remember that when the mint tells us how much coins cost to make that they are not talking only about materials costs. They include the cost of creating planchets, all labor and overhead costs, packing and shipping, etc. I honestly see a problem with cents and nickels costing more than face value to produce, or even them getting to the point where they are worth more than face at scrap. Coins are a medium of exchange that have a lifetime in excess of 30 years and are used many times in those years. A single coin is spent many times and in that sense ends up being worth far more than the cost of production or any intrinsic value. In terms of mint profits, the quarters and dollars make so much profit that some loss on cents and nickels when they sell to the Federal Reserve is swamped out completely. With the volume of production way down from the numbers of a decade ago, now is not a sensible time to spend money figuring out how to reduce costs. save that for a time when volume production returns. If you want a change, then do everything you can to get the dollar coins into use and stop the dollar bill waste. Then the profits from dollar coins can pay for an update to cents and nickels and dimes too since they will be next anyway.
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Pillar of the Community
United States
1027 Posts |
I meant to say "I honestly don't see a problem ..." Where is the edit post button?
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Valued Member
United States
167 Posts |
if you check (124) This link is not allowed by the Staff canandian nickels before 1981 have like 11 cents worth of metal in them.
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Pillar of the Community
United States
3592 Posts |
[Anything you can use $1000 for now that will make you money (even putting it in a savings account) is better than squirreling away $1000 worth of nickels./]
Speculating is all about taking chances that most people think doesn't make sense...and for the record, I don't hoard nickels, I'm just theorizing.But to give you an example...I once bought a thousand shares of NVR at $20. When it hit $80, all the "experts" said sell because it was artificially inflated and they gave a million reasons why.Needless to say, I held on all the way to $941.Having vision and taking chances sometimes works if you believe in yourself.
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Replies: 28 / Views: 5,508 |
Posted 11/12/2010 3:35 pm
