Investopedia September, 2012 Stocks and bonds are common investment vehicles which are owned, directly or indirectly, by investors and pension holders. Metals also have a market value; silver and gold, for example are traded daily. Other metals also have value and a new breed of investors is emerging: the coin hoarder. What's in Your Change? All American coins are made from a variety of base metals. Prior to 1965, dimes and quarters were made primarily of silver, until the soaring cost of silver forced the United States Mint to change the composition of the coins to a cheaper alloy. Prior to 1982, pennies were composed of 95% copper, until lower-cost zinc replaced a substantial amount of it. Nickels are still composed of 25% nickel and 75% copper. As the underlying values of the metals rise, the coins become theoretically more valuable. At today's prices for copper and nickel, a five-cent piece is worth almost seven cents. There's a catch, however. Since 2006, it has been illegal to melt down pennies and nickels. Read the rest I believe this is a growing trend. Of course I'm sure there are no hoarders here at CT.
It's a loosing battle, and here is why. Silver was a precious metal. Although it was cheap for quite some time, it's price rose to the point it was not worth it, to make coins. However nickel is a base metal, it's used in quite a few things. It's used in stainless steel, batteries, chrome plating, etc. If nickel was to suddenly double, it would make things much more expensive. Base metals, unlike precious metals, have not "soared" over the past 30 some odd years. Of course a nickel might be worth 7 cents, is anyone going to pay 7 cents? No. There are refining costs involved.
Maybe the day will come when a nickel's metal value is 12-15 cents. Then, it may be worth melting them down.
Of course you know everything, but industrial metals such as nickel and copper long term will gain in value as second and third world economies ramp up and modernize they will need 'base' metals for all sorts of industrial purposes. Even governments are aware of this which is why they want to debase the 'base' metal coinage even further because they want that 'base' metal bullion back. In fact in the congressional report part of the gained savings purposed in changing the composition of the cent and nickel is from the government hoarding i.e. removing the very same 'base' coins from circulation and melting them down for their 'base' metal value.
This is what the U.S. Constitution was supposed to protect when it was written... Slowly going going; then poof... Gone! Before we know it, there will be nothing that we do that the U.S. Government won't be right there watching us while we do it ... To keep on topic... I say hoard away boys, someone still has to physically take it from us before they can have it
People hoard everything, its just that this is a coin forum so its more focused on coins. There are people that hoard dead stuffed animals (can't remember the name). But not to get off topic, some coin collectors like to collect because of the intrinsic value. While some just like shiny coins.
