Forget crypto; is time to put your savings into nickels?
Metal prices have gone way up since Biden took office. Russia is the world’s largest exporter of nickel, so nickel prices have skyrocketed in recent weeks in response to western sanctions. At current prices for nickel and copper, the metal in a US nickel is now worth over $.088. That is 76% above its face value.
Not surprisingly, there is already a law on the books that makes it illegal to melt the coins with some narrow exceptions.
If you doubt the figures, here are the numbers:
A nickel is 25% nickel and 75% copper. It weighs five grams, so there is 1.25 g of nickel and 3.75 g of copper.
The current market price of nickel corresponds to $.043/g. Copper is $.00924/g.
The total value of metal in a nickel coin is ($.043/g) (1.25g) + ($.00924/g) (3.75g) = $.0884.
Is that for pure Nickel only? It’s my understanding that alloys of any metal does not carry anywhere near the value because it’s very difficult if not down right impossible to separate the pure metal that’s in an alloy.
The only reason the deficit is going down is because we are no longer the spending extra trillions of dollars on COVID relief:
“As we’ve noted before, the Fiscal Year 2022 deficit is slated to decline dramatically relative to 2021, and the debt-to-GDP ratio is likely to fall by the end of the fiscal year as well. But that is to be expected when most of the $5 trillion in COVID relief was disbursed in 2020 and 2021 while revenues sank due to the slowdown in economic activity.”
investing in precious metals is a good investment… how long do you think it will be until all nickels minted with precious metals are confiscated by the benevolent government (such as gold coins were) and replaced with digital currency…
