Jefferson nickel metal value down.

Discussion in 'US Coins Forum' started by elaine 1970, Jun 19, 2007.

  1. elaine 1970

    elaine 1970 material girl

    nickel downed 20% from its peak. so it affected the jefferson nickel. now it worth less than $0.08 each. before, it reached a high of $0.10 each. what you think it can go from here?.
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  3. holz

    holz holz

    This is Guaranteeeeed to not drop below your initial Investment of Five Cents .
  4. jody526

    jody526 New Member

    I thought Jefferson nickels were composed of an alloy called "cupro-nickel".
    Are you saying they are made of Nickel?
  5. Treashunt

    Treashunt The Other Frank

    .75 = copper %

    .25 = nickel %

    5.00 = total weight in grams
  6. jody526

    jody526 New Member

    I know. ;)

    I'm just trying to figure out how you compare apples to oranges.

    Jefferson nickels aren't made of Nickel.
    They are made of a different metal. A metal called "cupro-nickel.
    It is possible to smelt them down into two elemental metals, but how much would it cost to do that?
    Wouldn't you have to consider that cost when determining the value of a Jefferson nickel's metal content?

    Most agree that the monetary "value" of anything is how much it can be sold for.
    Not counting numismatic value, how much can an ordinary Jefferson nickel be sold for?
    Who will pay more than five cents for one?
  7. Treashunt

    Treashunt The Other Frank

    Not me.
  8. Pocket Change

    Pocket Change Coin Collector

    Ahhh. If there is a buck to be made, a whole lot of people. When I was growing up in the late 60's and early 70's, I don't know how or where you would have sold silver. Now, from my house, I can WALK to at least five different places that takes anything that looks like silver.

    And the people I sell my junk silver coins to aren't the ones smelting them nor do they probably have a clue as to how it works - there's just a buck to be made, that's all :)

    But it ain't gonna happen at 0.08 or 0.10. Gotta go higher than that.
  9. holz

    holz holz

    The US Mint is currently paying around 9 cents to make 5 cents.
  10. cladking

    cladking Coin Collector

    If there were no melt ban in effect the wholesale price of these would be around 8c each and they would be used as alloy and chill scrap in the production of stainless steel. For small quantities scrap dealers pay between 40 and 80% of metal value so it would still be difficult to profit unless you can cut out smoe middlemen or obtain large quantities.

    Ultimately this is the end for most modern coins; they are recalled by the issuer and sold to scrap dealers in huge quantities. Most of the modern European coins were melted inScandinavia and China, theSouth American in Japan, and India has absorbed most of thecoins of that region. Canadian coinage is being melted in Canada and the US coins won't be destroyed on a widescale basis until there is a replacement for the nickel and the ban is lifted. There are some anecdotal stories of nickel shortages so the government's hand may be forced sooner rather than later. It still costs the government more than 10c each to mint these so it should be some relief, at least to taxpayers, when they change the size and/ or composition.
  11. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    There is a certain speculative element to nickels just as there was initially when they stopped making silver coins. It takes a little leap of faith to hold onto the coin knowing that the melt value is above the face value, but it's pretty riskless. This isn't much different than the leap of faith coin collectors take when they purchase coins above face because of their age, condition and rarity. I would suspect, but can't prove, that nickels are probably disappearing by the millions right now, getting shipped across the border or to less than honorable smelters, or just disappearing into boxes in the back of the closet. I happen to believe that metal in the form of coins is worth more than spot because the metal content and purity is known and guaranteed. The coins are worth more as a store of value than they are to a smelter, and melting them is almost never the highest and best use of the coins. But this generally doesnt' show up in the market place until after the public recognizes the shortage.
  12. elaine 1970

    elaine 1970 material girl

    nickel downed

    jef nickel closed today at $0.076. downed 24%.
  13. jody526

    jody526 New Member

    You're talking about 25% Ni/75% Cu, right?
    Do you know of an online market quote for 25% Ni/75% Cu alloy?

    It doesn't cost the taxpayers anything to produce nickels.
    The government profits from the production of coins and currency.
    Every time they (US Gov.) sell a $100 banknote to the Fed. Res. they profit.
    Same goes for everything else, except, apparently the cent and nickel.
    Profits far outweigh losses.
  14. cladking

    cladking Coin Collector

    Due to the melt ban in this country it is illegal to even have a wholesale price. If you can deliver significant quantities out of country then you can get this kind of money. They are so desperate for nickel and stainless in India right now that they are melting coins illegally and AT A LOSS to make razor blades. Perhaps the recent crash in nickel prices will put an end to this, but it's supply that is needed, not a lower price. It should be noted that the ban on melting also includes a ban on export.

    If we didn't make nickels at a loss then we'd all be wealthier. The only reason any government would do this is that a nickel has become so little money due to this exact sort of mismanagement that the loss of even billions of them are inconsequential. The loss hardly stops at the about 50c of worthless cents and overpriced nickels that it costs each individual American each year. There is also the polution created to mine, transport, and fabricate these coins. More importantly is the huge amount of time wasted to count and handle a coin that has so little value that many people just throw them in the garbage.
  15. jody526

    jody526 New Member

    I just talked to the guy that owns the local scrap metal recycling yard.
    He said he was sure that there was a market for cupro-nickel alloy.
    He said he would have to make a phone call to get a price quote, and sinse I didn't have any for sale, I didn't push the issue.
    Now that we know there is a market, all we need to do is find a firm offer to buy, and we will be able to establish exactly how much a nickel is worth as scrap metal.
  16. JeromeLS

    JeromeLS Coin Fanatic

    The nickel is a complete waste of money to make-ANSWER-nickel plated aluminium.
  17. elaine 1970

    elaine 1970 material girl

    further downward today

    nickel felt again today. so did jef nickel. now at $0.0757 each.
  18. Treashunt

    Treashunt The Other Frank

    Wow, at least my 5 cent investment is still safe.
  19. elaine 1970

    elaine 1970 material girl

    nickel down heavily

    nickel metal price dipped to recent low. thus jefferson nickel also followed. now it worth $0.073869 each. that is based on its metal value. jef nickel reached a high at almost $0.10 each.
  20. elaine 1970

    elaine 1970 material girl

    jefferson nickel

    jefferson nickel hit a low at $0.07 and a high at $0.10 each. currently is around $0.074. it was a downtrend for jeff.
  21. Danr

    Danr Numismatist

    does that take into account that fact that there is not much of the metal nickel in the coin?
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