Nickels are now 102% of their face value

I started collecting rolls of nickels a few months ago because I saw that their melt value was at about 98% of face value. I suspected with continued inflation and rising costs of nickel and copper than it wouldn't be long before they became worth more. Today I noticed that they were at 102%. I figure I have a rare opportunity to buy a large hoard of these coins now, so that in 30 years time I will have a really good investment. Worst case I can still get my money back as they are always worth 5 cents.

Just imagine if you could have hoarded up 1,000 silver quarters back in 1964. Today they'd be worth $25,000.

 

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You probably have more luck saving copper pennies than the nickels in my opinion. More return on investment, at least at the moment with the copper value being well over 200% over face.

 

Nickels are a can't lose and FREE investment. Face value prevents them from being less than 5 cents, but melt value which exceeds 5 cents will only rise over time. I don't think they will prove to be as lucrative as gold and silver, but you can always spend them if you need to without having a buy/sell spread to worry about. I have already purchased a few pounds, and may get more.

 

I agree that copper pennies are probably a better option, but as you said, you can't really lose. There was a time around 2007 or 2008 when nickel was over 20$/lb. and nickels were around 7 or 8 cents apiece in metal value. Nickel is much lower lately, but copper is up as compared to back then. Nickels get their metal value from both somewhat equally as they are 75% copper and 25% nickel (and nickel is worth a few multiples of copper). If you have the room I suppose it makes sense.

 

All of the above is fairly pointless, as it's illegal to melt nickels/pennies.

 

FREE MONEY!!!
:hail::hail::hail:

I'd be more worried the meth-heads will be stealing your muffler (catalytic converter Pt content: 3-7 grams ~ USD$ 155. - 361. at current Spot and -25% Less @ Melt?) if normal Americans start thinking base-metal value in US coins.

 

To a point you are correct, but one of these days they will probably be able to melt them and the whole point is to invest. Copper and Nickel prices won't create a high profit anytime soon, but by the time the government allows people to melt them, maybe it will be worth it.

 

I have a small hoard of nickels, for a couple of reasons. I am hoping the increase in the value of the metal will at least keeps up with inflation, but I don't know if it will. I also have young kids and I think it may be interesting to them to open up a box or two of nickels that are five of ten years old. The nickel and copper cent thing are fun for me, because it cost me very little to do. People do trade copper cents at slightly more than face so the prohabition on melting is not really an issue.

 

You are all forgetting something here.

Coins will be meltable ONLY if the Gov allows so. Nickels are not going away for a very long time, so your all going to look silly sitting on a stack of nickels, as nickels will be around for the next 20 years. Pennies do have a good chance of going away, and many scrap places DO NOT accept nickel, most of them accept copper, however.

 

I would like to see a link to the legal statute that makes it illegal to melt nickels in the United States.

 

Here:
http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=771

Specifically, the newly enacted final regulation prohibits, with certain exceptions, the exportation, melting or treatment of one-cent and 5-cent coins. Some of the exceptions allow for small amounts of these coins to be exported as pocket change, and for recreational and numismatic purposes. Other exceptions include the treatment of minor quantities of these coins for educational, amusement, novelty, jewelry and similar purposes. However, the public should review the regulation for precise terms and limitations of the exceptions.
The new regulation authorizes a fine of not more than $10,000, or imprisonment of not more than five years, or both, against a person who knowingly violates the regulation. In addition, by law, any coins exported, melted, or treated in violation of the regulation shall be forfeited to the United States Government.

 

I save nickels older than 1955ish. They're worth either 5 cents, or whatever they melt value may be, or any numismatic premium that could possibly be attached now or in the future. Win win win I figure. Newer nickels tho? Nah, I don't bother with those.

 

I'm sure you are/were well aware of the US Mint decision to rule that such actions were deemed illegal. This is by rule of law. So, to answer your question on statute:

The Coinage Act of April 2, 1792

And all subsequent acts related to coinage. The Director of the Mint is granted authority to control the distribution/circulation of coinage. As such, the authority, by rule of law, is implied to extend to defining penalties for circumventing said authority.

If you feel so inclined to read the Act, here is a link to the .pdf file:

http://www.usmint.gov/historianscorner/?action=DocDL&doc=legactapr1792.pdf

 

It doesn't matter if you can melt them or not. Copper cents sell for twice face value on eBay. It may not necessarily pay off but it's all upside with virtually no downside.

US nickels are 75% copper, only 25% nickel. If you want nickel base metal you need Canadian nickels, which I prefer. Plus you can melt them in the states

 

How can I buy quantities of Canadian nickels?

 

i think you should re do your math a little a 1,000 quarters is $250 dollars, at this moment melt is a little over 24x face value. so lets say 250 x 25 = 6250. and a while back nickels were worth around 6 cents and copper pennies worth 3 cents. like anything else it goes up and down. and if the price of nickel and copper does go up a bit i am sure they will be sold just like junk silver.

 

Spend some time in the Maritime's........

 

Not from me. I drive an electric car and it has no muffler or catalytic converter.

 

I save them as I find them in change. I have around 500 nickels so far. I have been saving copper cents also but not finding a lot of them lately. Maybe a lot of people are saving them.

 

I don't think hoarding nickels for investment purposes are a wise long term investment. I'd imagine over time, the cost of storing them would outweigh their actual value would be one of many factors of not banking on nickels for your retirement or investment portfolio. Unless you already have access to a very large vault that can store enough nickels where the value outweighs the costs.

Collect nickels and enjoy them, but don't invest in them, the result when you go to cash them in would likely be disappointing.