Be Prepared - Start hoarding nickels

[APPLE314]

In times of turmoil and super inflation you need to hedge your bets. Normally this means purchasing Gold or Silver bars, ingots, coins etc. But in the coming crisis this may not be possible. A reasonable substitute would be to use nickels as your store for wealth. Right now using spot prices for nickel and copper it costs right at $3.00/lb. for the metal in one pound of clad nickels. There are 90.79 nickels in a pound. The composition of nickels is 75% copper and 25% nickel.
Whenever the equation (.75 times spot price of copper + .25 times spot price of nickel) is greater than
(90.79 times 5 cents ) then you can melt down the nickels and make money selling the coins for raw materials.

For you programmer out there: if (.75Cu + .25Ni) > $4.54 then you'll have a profit.

I bring this up now because you can still get nickels.


You can do the same with Lincoln pennies made before 1982. People still holding pre 1982 pennies have a 70 cent profit already. Post 1982 pennies now have to go to over $50.00 to be profitable. They changed the composition from 95% copper to 5% copper in 1982.

Forget dimes,quarters,halves, and dollars. Need to get to $20-$60 range

[Sammy Pepys]

1. Aren't most modern coins alloy based?...n/t

...

[LostinVA]

2. I believe so n/t

[fasttense]

4. Please excuse my ignorance but isn't an alloy

merely the mixing of two or more elements? Or do you mean aluminum alloy?

[Dogmudgeon]

3. It will take a LOT of nickels

I don't think it's worth it to hoard any coins except those which contain precious metals. There is more likely to be greater numismatic value in any given batch of nickels than in the material itself. One rare Indian's head nickel, and you'd have it right there.

BUT ... it's a good find on your part. These crossover points have usually coincided with some kind of financial trouble, like when the cost of a new penny hit the break-even point. Because while it is probably unprofitable for you or me to hoard nickels, it ISN'T unprofitable for "metal-based" traders to do so by buying holdings of vast numbers of coins.

--p!

[Sammy Pepys]

5. One thought did come to mind...

If it's better to hold nickels or pennies, then shouldn't we all just cash out or accounts now and take the money in nickels and pennies, rather than let it sit in bank accounts?

You can still use that money in everyday life (pissing off every cashier you meet along the way :evilgrin:), and when the crash comes you don't have to worry about getting to the bank.

OK, I know that's an extreme suggestion... :)

[SammyWinstonJack]

6. !

:spray: "(pissing off every cashier you meet along the way :evilgrin:)" That would be a piss off not only for the cashier, but for everyone in line behind you.

[Dogmudgeon]

7. No need to

Currency will never have less than its face value, and your money in the bank is insured by the FDIC.

If the value of the Dollar deflates, that will be a problem, but if it happens that quickly, there will probably be a bank holiday and recall of currency. At that point, I wouldn't worry about the value of your money -- the nation itself will be crumbling.

The real speculative profits are in silver and gold. It is unlikely that there won't be spendable money -- even if it is in the form of a debased scrip.

--p!

[Sammy Pepys]

8. Yeah, I know...

I was being a little goofy with that.

You're right about the rest of it...if something major did happen, there really wouldn't be anything you could do about it....which is why getting up to your eyeballs in speculative investments like precious metals really isn't necessary.

[Dogmudgeon]

10. Precious metals could be a good investment

But some of the "Gold Bugs" are just nuts about it.

The best investments you can have in the event of a crash and the breakdown of society would be your friends, your family, and your education. When I read lists like Running On Empty and other Peak Oil interest forums, there is a lot of survivalism going on. Well, it's fine to know how to use a shootin' iron and how to grow a garden, but the real survival skills are people skills. Most people will NOT be able to repair to their survival retreat and cackle in manic glee as The Sheeple come to their ignominious but well-deserved end, as the Objectivists and Nugentians savor their politically-incorrect venison in the comfort of their wooded redoubts.

I am one of those Cassandras who think that the carpet will soon be pulled out from under us, but I don't think that "smart investing" will do a whole lot for most people, especially if/when there is a major financial calamity and re-organization. The "mental" investments will be a lot more valuable. If enough of us make those investments, the "catastrophe" could turn out to be a boon.

--p!

[Sammy Pepys]

12. Precious metals do have a place...

But I think anyone having more than 10%-15% of their stake in them is too heavily invested in that sector. I think most folks are more preoccupied with the recent gains than the safety/hedge aspect that metals typically provide in a portfolio. It's nothing more than chasing returns.

But you're right...if something major happens, it's probably not going to matter what you're in. You'll be screwed like everyonbe else. So the best thing to do is not to invest as if there is a majorly crushing economic calamity in our midst, because you're more likely to approach the whole thing prudently.

[BrotherBuzz]

9. What this country needs is a seven cent nickel.

Groucho on the economy (from Animal Crackers)

Roscoe W. Chandler (Louis Sorin): The nickel today is not what it used to be ten years ago.

Captain Spaulding (Groucho): Well, I'll go further than that. I'll get off at the depot. The nickel today is not what it was fifteen years ago. Do you know what this country needs today?

Chandler: What?

Spaudling: A seven cent nickel. Yes siree, we've been using the five-cent nickel in this country since 1492. Now that's pretty near 100 years daylight saving. Now why not give the seven cent nickel a chance? If that works out, next year we can have an eight cent nickel. Think what that would mean? You could go to a newsstand, buy a three cent newspaper, and get the same nickerl back again. One nickel carefully used would last a family a life-time.

Chandler: Captain Spaulding, I think that is a wonderful idea.

Spaulding: You do, eh?

Chandler: Yes.

Spaudling: Well, then there can't be much to it. Forget about it.

[quaoar]

11. You'd do better to invest in gold

The price is likely to continue to escalate. Wouldn't be surprised to see it hit $800.

[Neil Lisst]

14. I'm not normally attracted to precious metals, but we're definitely

in a time when gold should be climbing over the long haul.

There's no reason to believe interest rates will decrease any time soon, and no reason to believe oil will decrease significantly.

I don't know the economics of saving nickels, but it sounds work intensive.

[AlienGirl]

13. You can buy tenth-ounce gold coins for around $75

If you put a little into that every time you're a little ahead, pretty soon you have quite a bit of gold!

Tucker

[Gold Metal Flake]

15. Where does one go to purchase gold coins? n/m