2013 Coin Debasement Formally Announced: When a Nickel Won't Contain Any Nickel.

[Ponce]

Well, I’ve been warning you since 2009, folks. The Wall Street Journal has just reported: Treasury to Cut Costs by Remaking Coins, Replacing Paper. Treasury Secretary Tim Geithner has now spoken. This debasement, under the kinder and gentler phrase “introducing more cost-effective materials” will begin in 2013. While the precise changeover date and the exact composition of the new penny and nickel have not yet been announced, I suspect that it will take place early in 2013 and the new coins will be made of stainless steel. (With a copper plating, for the penny.) The ravages of inflation made the change inevitable. The Journal reported: “The cost of making pennies and nickels are about twice the face value of the coins–2.4 cents for a penny and 11.2 cents for a nickel, the Treasury Department said earlier this month.”

You gave been warned. The clock is now ticking. I strongly urge you togo to your local bank or credit union, and ask them to order you some $200 U.S. Mint boxes of nickels. In just a few years, after the debasement is completed and the rational self interest of Gresham’s Law psychology purges all of the real cupronickel nickels from circulation, rolls of pre-2013 nickels will sell at a substantial premium. Because nickel is a base metal, this premium will never be as high as that for silver coins, but at least you’ll know that you hold some genuine money that will hold its value, even if the Quantitative Easing monetization process continues indefinitely. (Quantitative Easing is debasement of the dollar, writ large.)

In addition to hedging against gradual inflation, holding nickels will also provide you insurance against the less likely sudden revaluation of the Dollar. As I’ve explained previously, if a zero is ever lopped off the Dollar, new paper currency will be issued, but the old coinage will still circulate. (Since it would be too expensive to replace.) This will make anyone holding coins the beneficiaries of an overnight 10X gain.

This is your last chance to stock up on nickels at face value, folks! If you don’t already have four or five .30 caliber ammo cans full of rolls of nickels, then you are behind the power curve. Don’t dawdle any longer.

2012-11-28 19:42:48

Source: http://www.survivalblog.com/2012/11/2013-coin-debasement-formally-announced-when-a-nickel-wont-contain-any-nickel.html

[mamboni]

Nickels are just too damn bulky. Heck, I've run out of room for more silver. But, there's no downside to buying nickels at this point. The legal tender face value is guaranteed. And their metal melt value no doubt increase substantially in the coming years.

[chad]

i stand corrected.

[Ponce]

With around 65 bricks of nickels plus another 15-20? in loose change the danm thing better go up, in the other hand, it would mke a good bed in my burial chamber.......and the pennies? I really don't know who is what, I only know that I have a lot of them.........I fore see time when loose change will have great value........not only the nickel and pennies.

[JohnQPublic]

I cannot find any independent verification of this story.

This is the closest I could find (from March 2012, WSJ blog):



March 28, 2012, 11:01 AM

Treasury to Cut Costs by Remaking Coins, Replacing Paper (http://blogs.wsj.com/economics/2012/03/28/treasury-to-cut-costs-by-remaking-coins-replacing-paper/)
"...Geithner, in written testimony prepared for the House Committee on Appropriations, said a good portion of next year’s savings at Treasury will come from changing the composition of U.S. coins to more cost-effective materials.


“Currently, the costs of making the penny and the nickel are more than twice the face value of each of those coins,” Geithner said in his remarks.

The cost of making pennies and nickels are about twice the face value of the coins–2.4 cents for a penny and 11.2 cents for a nickel, the Treasury Department said earlier this month. Rising commodity prices have driven higher production costs. The Mint said it used 16,365 tons of copper, 2,311 tons of nickel and 11,844 tons of zinc to produce all coins in fiscal year 2011...."

[Down1]

Beat me to it JQP.
I went to the Treasury Department and nothing there.

Ponce your link is broken.

[vacuum]

Looks like survival blog removed the story

http://preparednessdaily.com/2012/11/2013-coin-debasement-formally-announced-when-a-nickel-wont-contain-any-nickel/ (http://preparednessdaily.com/2012/11/2013-coin-debasement-formally-announced-when-a-nickel-wont-contain-any-nickel/)

[JohnQPublic]

Looks like survival blog removed the story

http://preparednessdaily.com/2012/11/2013-coin-debasement-formally-announced-when-a-nickel-wont-contain-any-nickel/ (http://preparednessdaily.com/2012/11/2013-coin-debasement-formally-announced-when-a-nickel-wont-contain-any-nickel/)

This just rehashes the March 2012 story I linked, then states that Geithner stated it will happen in 2013 with no supporting documentation, but implying that the WSJ article supports it ("Treasury Secretary Tim Geithner has now spoken. This debasement, under the kinder and gentler phrase "introducing more cost-effective materials" will begin in 2013."). Nothing new or supporting here (beyond the March story).

Clearly the March story indicates that it will happen, but all the stories popping up the last couple of days imply that Geithner just made an announcement. The story you linked says, "The Wall Street Journal has just reported", but the article it links is from March, and the article you linked is from yesterday!

In any case, it sounds like it may be coming next year.

[Down1]

Actually FY 2013 started Oct 1.

[Ponce]

Down? don't blame me, I only work here......... by the way, today my laptop was frozen by the FBI for going to the wrong sites and they wanted me to pay a fine of $200.00 hahahhhah......no matter what I did I was unable to unfreezed... so, I took my lap top to my fixer lady who told me that she had seen it before......and she fixed for me for $10.00.

[Down1]

Down? don't blame me, .

OK I absolve you.

Perhaps the the blogger did some more research after posting and realized his error.

Glad your computer has recovered from its malware infection.

[osoab]

Down? don't blame me, I only work here......... by the way, today my laptop was frozen by the FBI for going to the wrong sites and they wanted me to pay a fine of $200.00 hahahhhah......no matter what I did I was unable to unfreezed... so, I took my lap top to my fixer lady who told me that she had seen it before......and she fixed for me for $10.00.

Quit looking at porn Ponce.

[Sparky]

Expect this to take place in 2014, not 2013.

One interesting thing to look for will be whether they also replace the dime, quarter, and half-dollar. It's been made clear by the Treasury and by the team investigating the composition options that the change is not necessarily limited to pennies and nickels.

[Ponce]

Osoab? going to the same site for two years with no problems.......they really love me hahahahhaha.

About a week ago I went to a site that offered free movies on line... the wanted my weeb name and so on...but... they then wanted my credit card number and I didn't gave it to them.....from them I am getting around 2000 junk mail a day and now I have a google account for real emails........and all that after five years with no problems..... by the way, those sites are in the UK.

[gunDriller]

Nickels are just too damn bulky. Heck, I've run out of room for more silver. But, there's no downside to buying nickels at this point. The legal tender face value is guaranteed. And their metal melt value no doubt increase substantially in the coming years.

PLUS - if you have a boating accident - nickel does very well in sea-water !

a definite plus. :)

[Silver Rocket Bitches!]

$100 for a box of nickels from your local bank. Get em while you can.

Bonus - you can hunt for war nickels which are 35% silver.

[Down1]

About a week ago I went to a site that offered free movies on line...
Due to recent events in the news I am looking to watch Miss Bala if you see it your travels Ponce, post a link please.
Thanks.

[Spectrism]

Yeah.... me and Mambone..... I can't even find any room for all the gold I have. I am actually converting parts to platinum.... and even my gold pressed latinum is commanding too much space on my ship.

http://www.coldnorth.com/owen/game/startrek/challenger/ferengi/latinum.jpg

Who has space for nickels and pennies? I will soon need to trade in all my latinum for the highly prized and compact federal reserve notes.

http://sharetv.org/images/star_trek_deep_space_nine/cast/large/brunt.jpg

[Sparky]

Yeah.... me and Mambone..... I can't even find any room for all the gold I have. I am actually converting parts to platinum.... and even my gold pressed latinum is commanding too much space on my ship.


But, platinum takes more space than gold now!

[JohnQPublic]

Congress looks at doing away with the $1 bill (http://news.yahoo.com/congress-looks-doing-away-1-bill-083418974--politics.html)


"...The Mint is preparing a report for Congress showing how changes in the metal content of coins could save money.
The last time the government made major metallurgical changes in U.S. coins was nearly 50 years ago when Congress directed the Mint to remove silver from dimes and quarters and to reduce its content in half dollar coins. Now, Congress is looking at new changes in response to rising prices for copper and nickel.

At a House subcommittee hearing Thursday, the focus was on two approaches:
—Moving to less expensive combinations of metals like steel, aluminum and zinc.
—Gradually taking dollar bills out the economy and replacing them with coins..."

"...Several lawmakers were more intrigued with the idea of using different metal combinations in producing coins.
Rep. Steve Stivers, R-Ohio, said a penny costs more than 2 cents to make and a nickel costs more than 11 cents to make. Moving to multiplated steel for coins would save the government nearly $200 million a year, he said.

The Mint's report, which is due in mid-December, will detail the results of nearly 18 months of work exploring a variety of new metal compositions and evaluating test coins for attributes as hardness, resistance to wear, availability of raw materials and costs...."

[Neuro]

But, platinum takes more space than gold now!
Even if you compress it? ;D

[Spectrism]

But, platinum takes more space than gold now!

Platinum is able to stand the high temperatures in my anti-matter shielding and provides the catalytic convergence for exceptional fusional efficiency lining the reciprotive flux vortex. I still have room there for 3000 bars. Then I am back to collecting gold.