More about the nickels...........

[Ponce]

I can only hope that I was able to convinced a few of you to buy nickels.....I know that five of you did.
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Letter Re: The Coming Shortage of Nickels.

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James,
You will have soon received a flat rate Priority Mail box containing $150 in nickels (inside a thick cardboard reinforcement liner) that I sent you. I sent you those coins for two reasons:

One: I should have been a [voluntary] Ten Cent Challenge subscriber, starting from back when I began reading SurvivalBlog in 2008. The nickels cover not only the past three years, but also pre-pay my subscription for the next year, too.

Two: Last week my local bank finally cut me off (and other bank patrons, too), from buying more than one roll [of nickels] at a time. You were right: "The window of opportunity is closing." In the summer of 2008, shortly after I started reading your blog and your novel, I started buying $40 in nickels (rolled) every time I went to the bank. I work just two blocks from the bank, so it was real easy to do on my lunch hour. The tellers must have thought that I'm in the vending machine business. Now, about 200-odd trips to the bank later, I now have accumulated more than $8K face [value] in nickels. So that one small box of nickels (soon to arrive) is just my small way of saying "thanks" for the heads-up on nickels.

They are all now in ammo cans (following your advice), forming a very imposing wall in my "Hidey Room" that my wife teases me about. I also have about 30 cans of ammunition--assorted calibers, lined up on the opposite wall in there. She says that both [the nickels and the ammunition] will give us protection not just from the soon-coming hyperinflation, but also incoming small arms fire and gamma ray radiation! That stack of 42 ammo cans (holding $188 face [value of nickels] in each can) is so darn heavy that I only feel safe with it on a [concrete] slab floor. I estimate that it weighs about 1.5 tons! Without the advance warning on coming events that you provided, there is no way that I would have "beat the rush" on nickels.

I was born much too late (1966) to get any silver coins at face value. But thanks to you, I've been getting nickels with a built-in 40% return, but costing me just face value!

OBTW, I have no doubt that there will be a "by the bag" bullion market for nickels within a couple of years, regardless of any change in the current "no melting" law. People recognize true value, and they always price it, accordingly. Just like you, I'm amazed at the rapid and fluid reaction of a free market.

[chad]

Ponce, I bought another 2 boxes this morning! ;D

i now have 10 boxes.

[Tom Roscal]

reminds of the story about how a German lady survived the hyperinflation in Wiemar Germany with a bath tub full of nickels....man i need more nickels.

[Ponce]

Tom? it was Germand coins in general..........but........by now I should have a bathtub of nickels ;D

[willie pete]

Tom? it was Germand coins in general..........but........by now I should have a bathtub of nickels ;D



Will you ever be able to do anything with them though ponce? ...right now a roll (40) of nickels is valued at $2.80 .... ;D

[Ponce]

Pete?......is what I keep saying over and over again.......in what is to come coins in general will be traded more than the paper fiat........but......the value of the nickel and the pennie will be a little bit higher... you must realise that this will take some time because the same way that 99% of Americans could care less about PM is the way that they will feel about coins in general........and ........the way that I feel about the one oz of silver that you might want to trade for my tp.....and a fancy one oz of silver will not reduce the price of my tp.......or in other words, to me a one oz of silver is a one oz of silve.

PS: Don't waste your good fiat in fancy coins.

[Twisted Titan]

So this is what it feels like ....to own pre IPO shares on the hottest stock alive.

I love nickles there is no down side to owning them.

None.


T

[madfranks]

Ok ok ok. I'm going to go buy a couple boxes of nickels. Ponce has convinced me.

[Ponce]

;D ;D ;D

[sunnyandseventy]

[i][b]So this is what it feels like ....to own pre IPO shares on the hottest stock alive.

I love nickles there is no down side to owning them.

None.

I was sitting in the parking lot before yoga this afternoon when I read this on my phone. I smiled and had a wonderful, warm, and proud feeling. A feeling that I made a good decision 10 years ago.
Then excitement and giddyness as I wondered what the drive up tellers response will be when I ask for a brick of nickels tomorrow ;D

[Spectrism]

http://hubcap.clemson.edu/~campber/sd47a.jpg

http://content.answcdn.com/main/content/img/amg/pop_albums/cov200/drf300/f366/f36674hsjj2.jpg

Very appropriate..... from 1929:
http://www.youtube.com/watch?v=HMSbryXNLZY

[Gangsta99]

Since reading your first off the wall post about nickels I have been investing more and more in silver and gold. Oddly enough I am up way more on that investment than if I was buying boxes of nickels. Strange how that has worked out.

[Ponce]

Gansta?........I see that you are a newcomer.....or at least if you haven't been reading all my postings, I always like to have a plan behind the plan, behind the plan.....and nickels is nothing more than one of those plans and not the plan itself......get it?, hope you did because I sure as hell didn't hahahahahaha.

My gold investment has gone up about 3 times and silver investment about 7 times, up till now......that's what you call and investment ;D

In 1972 I bought it (silver) at $2.95 and in 1980 sold it at $43.65.....that's what you call and INVESTMENT ;D ;D ;D........three smiles for that one.

[sunnyandseventy]

Just went to my CU. Couldn't gauge the tellers reaction well as she had a South American looking man trying to cash a several hundred dollar check without an account there. She didn't let him. It sounded like it wAs a Wells Fargo check.
Anyway, had to order the box o' nickels. She said they have a lot of rolls then asked how many I needed. Told her I just wanted a box. No issues. Took my name and phone, said I'd get them next week. $200.
I did get five rolls while I was there. That's five rolls of nickels Ponce, not toilet paper :)

[Ponce]

Sunny? as long as you want to be sooooooooooo correct......$200.00 is two boxes, not one ;D

[sunnyandseventy]

Sunny? as long as you want to be sooooooooooo correct......$200.00 is two boxes, not one ;D


Well this'll be interesting. Either she quoted me the wrong price or thought I wanted two boxes.
Maybe nickels are more 'spensive here? Or maybe she quoted me the dimes price? Now I'm hoping there's two boxes!

[willie pete]

Pete?......is what I keep saying over and over again.......in what is to come coins in general will be traded more than the paper fiat........but......the value of the nickel and the pennie will be a little bit higher... you must realise that this will take some time because the same way that 99% of Americans could care less about PM is the way that they will feel about coins in general........and ........the way that I feel about the one oz of silver that you might want to trade for my tp.....and a fancy one oz of silver will not reduce the price of my tp.......or in other words, to me a one oz of silver is a one oz of silve.

PS: Don't waste your good fiat in fancy coins.



Well what I meant Ponce...do you think the current Melt-Ban on nickels and pennies, will ever be lifted so that you might Profit on your investment? or would you say pinga? :D

[Ponce]

Well, I haven't seen any silver dimes being meltes as of late, have you?........same thing for the curent coins, they will stand up to its own value and NOT because of the melt value.......and like I said before, you may get a few extra oz of rice for you copper penny or your nickels.

[Uncle Salty]

My silver is heavy enough.

Nickels? If I had a farm house to store them, perhaps. But the space to value ration is a bit too high for me.

[Ponce]

Well Uncle, I don't go by what is but rather for what it could be, and because I don't know which one it will be I like getting ready for all.

[DMac]

To those that claim it is hard to store the nickels, if you're that big of a baller, tossing 1-2K worth in a closet is icing on your PM cake and only takes a tiny bit of space.

It's yet another hedge. Storing nickels is insurance against deflation, IMO.

[Ponce]

Let me put it this way, you would love my coffee table in my living room hahahahahaahahah, but it is a little bit too heavy ;D

[Spectrism]

A few boxes of nickels & pennies make good front treasure troves for invaders. If you are robbed, point out a stash of these and the robbers will think they got your loot. Also, they have to haul the weight.

Your real stash is in other places.

Same for plated silver. Keep that with your false stash and it looks like you have a variety of treasures for them to plunder.

[willie pete]

To those that claim it is hard to store the nickels, if you're that big of a baller, tossing 1-2K worth in a closet is icing on your PM cake and only takes a tiny bit of space.

It's yet another hedge. Storing nickels is insurance against deflation, IMO.



how are nickels insurance against deflation? ???

[madfranks]

To those that claim it is hard to store the nickels, if you're that big of a baller, tossing 1-2K worth in a closet is icing on your PM cake and only takes a tiny bit of space.

It's yet another hedge. Storing nickels is insurance against deflation, IMO.



how are nickels insurance against deflation? ???


If major deflation hits and prices for all commodities go down, and the metal value of the nickel goes under 5 cents, the face value of the nickel insures you don't lose your money.

[willie pete]

To those that claim it is hard to store the nickels, if you're that big of a baller, tossing 1-2K worth in a closet is icing on your PM cake and only takes a tiny bit of space.

It's yet another hedge. Storing nickels is insurance against deflation, IMO.



how are nickels insurance against deflation? ???


If major deflation hits and prices for all commodities go down, and the metal value of the nickel goes under 5 cents, the face value of the nickel insures you don't lose your money.


OK....I'm NO economist; when was the last time we experienced a sharp drop in commodity prices? ...it just seems to me that to be able to benefit from your theory, you'd also HAVE to have most ALL of your assets in nickels, and that doesn't seem practical? NOTE: I'm NOT arguing with you .....Don't Ban me bro... :D

[DMac]

To those that claim it is hard to store the nickels, if you're that big of a baller, tossing 1-2K worth in a closet is icing on your PM cake and only takes a tiny bit of space.

It's yet another hedge. Storing nickels is insurance against deflation, IMO.



how are nickels insurance against deflation? ???


Besides any speculative value due to the metal content they only cost what they are stamped with in face value:
http://www.survivalblog.com/2011/03/two_letters_re_nickels_as_an_i_1.html


Unlike paper money, the nickel coins of the current composition will be never be "worthless". Since they are composed of 75% copper and 25% nickel ("75/25"), they will always have at least the base metal value of those metals. (Currently about 130% of their face value.) And, as insurance against unlikely deflation and falling metals prices, the nickels could always be spent back into circulation. Thus, they are as close to a "you can't lose" hedge as you could ever hope for.

[willie pete]

To those that claim it is hard to store the nickels, if you're that big of a baller, tossing 1-2K worth in a closet is icing on your PM cake and only takes a tiny bit of space.

It's yet another hedge. Storing nickels is insurance against deflation, IMO.



how are nickels insurance against deflation? ???


Besides any speculative value due to the metal content they only cost what they are stamped with in face value:
http://www.survivalblog.com/2011/03/two_letters_re_nickels_as_an_i_1.html


Unlike paper money, the nickel coins of the current composition will be never be "worthless". Since they are composed of 75% copper and 25% nickel ("75/25"), they will always have at least the base metal value of those metals. (Currently about 130% of their face value.) And, as insurance against unlikely deflation and falling metals prices, the nickels could always be spent back into circulation. Thus, they are as close to a "you can't lose" hedge as you could ever hope for.


I got the whole "content" thing...and of course it's true......BUT currently you can't take advantage of melting down nickels or pennies for their content....well you COULD IF you want to take the risk of a stiff fine and possible federal jail time :D ..so currently a nickel is only worth 5¢ even though the metal content may be worth 1-2 ¢ more

[DMac]

There was a time it was illegal to melt silver coinage as well.

[willie pete]

There was a time it was illegal to melt silver coinage as well.


Sure it was....but then they removed the precious metal content out of circulating coinage....and I don't discount that eventually they'll remove the base metal content out of circulating coinage also...may take a while though

[DMac]

Sooner than you might think:

Here comes the steel: US Mint asking for ideas for new coin metals. (http://gold-silver.us/forum/general-discussion/here-comes-the-steel-us-mint-asking-for-ideas-for-new-coin-metals/)

;D

[willie pete]

Sooner than you might think:

Here comes the steel: US Mint asking for ideas for new coin metals. (http://gold-silver.us/forum/general-discussion/here-comes-the-steel-us-mint-asking-for-ideas-for-new-coin-metals/)

;D


Yep....I guess they could get the crooks in congress to rubber-stamp it through without a hitch :D ...hasn't Canada already done it? Without looking, I think they've already removed all their nickels out of circulation and replaced them with zinc plated steel :D

[JDRock]

ive heard that nickels were worth more pre 64 ...dunno if its true, but anyone have any info??

concerning meltdown and resale, i think the point is in a shtf scenario, its all about what they will be worth ON THE STREET. ;)

[Sparky]

ive heard that nickels were worth more pre 64 ...dunno if its true, but anyone have any info??
...


Only nickels from 1942-1945, which contained silver. These coins have a big "P" on the reverse side over Monticello. They're currently valued at almost 2 bucks apiece.

[Sparky]

To those that claim it is hard to store the nickels, if you're that big of a baller, tossing 1-2K worth in a closet is icing on your PM cake and only takes a tiny bit of space.

It's yet another hedge. Storing nickels is insurance against deflation, IMO.



how are nickels insurance against deflation? ???


If major deflation hits and prices for all commodities go down, and the metal value of the nickel goes under 5 cents, the face value of the nickel insures you don't lose your money.


This is true, but no more true than any other currency. Holding FRNs or other coins is also a hedge against deflation. The thing with nickels is that it has upside over paper in inflation, but no downside in deflation.

In this vain, precious metals may lose to FRNs in deflation, depending on the cause of deflation. If there is deflation that causes the price of a washer/dryer to go from $1400 to $1000, I'm better off having the FRNs than the ounce of gold in most instances. The exception would be that if the cause of deflation had the opposite impact on PM prices, which is possible but less likely.

The thing I realized about the inflation debates with Carl, et al.: True, that the current contraction in debt is deflationary. However, the reaction/response to deflation is ALWAYS inflation. So in my example, although in the short run it may be advantageous to hold the FRNS, if I don't need to buy a washer/dryer during the deflationary period, ultimately I'll be able to buy them for less than an ounce of gold. This is yet another reason for diversification. You don't want to have only PM and no FRNs.

[cthulu]

There was a time it was illegal to melt silver coinage as well.


Sure it was....but then they removed the precious metal content out of circulating coinage....and I don't discount that eventually they'll remove the base metal content out of circulating coinage also...may take a while though


Not as long as you would think. Go to any store and watch the cash register. 9 of 10 people probably use some fom of electronic money.