Mondays With Murray: Time to Hoard NickelsSubmitted by Jao171 on Mon, 02/11/2013 - 19:31
It was in early 2011 that I discovered the website coininflation.com. Since then I have spent countless hours watching the melt values of gold and silver coins fluctuate as the governments of the world meddle with their countries’ money supplies. Most of the coin’s values that are monitored were minted prior to 1964 and can only be purchased in coin shops or on eBay. It would take some luck to receive a pre 1964 Washington Quarter in your change when buying a pack of gum at a 7 11. Although, there is one coin currently produced by the US Mint that I keep a very close eye. The Nickel is the only coin currently minted by the US government that has a metal value in excess of the face value.
My interest in collecting coins began immediately after I completed reading, What Has Government Done to Our Money?, by Murray Rothbard. In this classic book, Rothbard cuts through the confusion surrounding voluntary exchange and money. He explains the necessity, history, and power the commodity holds in our lives. Like so many of Rothbard’s works, the lessons taught in this book apply to the same issues our society struggles to comprehend today, including the importance of a sound money in voluntary exchanges and the detrimental effects government price fixing in money has on common folks.
Murray’s principles and his explanation of Gresham’s Law are invaluable in explaining current monetary developments in Canada and the United States concerning the values of Canadian Pennies and US Nickels respectively. This is especially true when considering the news that broke last week in Canada that the Penny is being phased out. The reasons behind this are not the least bit surprising, but are probably misunderstood by mainstream media. The Canadian government claims that they will save 11 Million dollars a year by halting production of pennies. In a press release the next day, the Royal Canadian Mint boasts, that due to the stoppage on production of pennies, every denomination of coin produced by the mint cost less to manufacture than the face value of the coin. The press release fails to mention that each coin minted is now worth less than the assigned face value of the coin, when compared to the base metal value of each coin.