Investment Of The Century: U.S. Minted NickelsSubmitted by bobbyw24 on Fri, 01/07/2011 - 14:02
For anyone who wants to make an immediate 80% return on your investment, go to your local bank with your worthless Federal Reserve Notes and tell them that you'd like to exchange them for rolls of nickels. On its face this might seem ridiculous and absurd and the bank teller might even look at you like you have three heads, but by exchanging your Federal Reserve Notes for nickels you will have made a risk free investment with an immediate positive return of 80%.
I've briefly mentioned this in previous articles, but what we are now seeing with pennies and nickels is similar to what took place in the late 1960's. In the late 1960's the melt value of circulating silver coins began to exceed the face value of the coins themselves. As people began to realize that the coin melt value was worth more than the face value, people began to keep these coins which ended their circulation. I believe that the same thing will happen to pennies and nickels. Currently the melt value of copper pennies is over twice the face value and the melt value of zinc pennies is almost equal to their face value. Each nickel now has a melt value of approximately 9 cents. This means that if you go into a bank and buy $1,000 worth of nickels those nickels are actually worth $1,800.
The bottom line is that the coinage that is produced by the U.S. Mint is the only honest money left in circulation. The coins themselves store value because of their metal content where as Federal Reserve Notes store no value. Federal Reserve Notes are a dishonest fraud because nothing can be redeemed for them at the Federal Reserve banks. As the Federal Reserve continues to create additional money, coins like pennies and nickels will emerge as another form of protection against inflation because regardless of how much money is created the coins will always have some intrinsic value.