U.S. Nickel worth more than a nickel again

Discussion in 'US Coins Forum' started by Phil Ham, Jan 16, 2021.

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  1. Phil Ham

    Phil Ham Hamster

    The intrinsic value of the U.S. nickel has exceeded $0.05 again. As of Friday, it was worth $0.0521612.
     
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  3. kanga

    kanga 65 Year Collector Supporter

    Again!?
    I don't follow such things but I thought it's been up around $0.075 for quite a while.
    Or am I mixing up total production cost vs. metallic value of just the coin.
     
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  4. JCKTJK

    JCKTJK Supporter! Supporter

    Copper is rising , i think atm it's at a 6 year high, also Nickel is used in electric car batteries so Nickel prices are up on that. The Mint will have some decisions to make in 2021
     
  5. GeorgeM

    GeorgeM Well-Known Member

    I think production cost has been above 7 cents apiece for a while & the OP is talking about intrinsic costs.

    What would be the alternative for a cheaper material? Aluminum bronze? Or polymer with a stamped nickel security thread inside?
     
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  6. kanga

    kanga 65 Year Collector Supporter

    How much would it cost to do a sandwich coin like the dime and quarter?
    OR
    Discontinue the cent and do a sandwich coin like the cent.
     
  7. GeorgeM

    GeorgeM Well-Known Member

    If the penny costs about 2 cents in it's current form, it would probably be close to 5 cents to make something the size and thickness of the nickel.
     
  8. Mr.Q

    Mr.Q Well-Known Member

    If it cost more but is worth less, what's wrong with this picture, duh!
     
  9. Jim Dale

    Jim Dale Well-Known Member

    I worked for a state government employee for over 30 years and found that the cost of manufacturing goes up because they feel it takes more employees to complete a job. I wonder if that is true for the Mint. I was told a story once that made me laugh, but in some cases is true. Many of you have probably heard this:
    How many accountants does it take to change a light bulb"
    The answer: 3. One to hold the light bulb and two to turn the ladder.
     
  10. Collecting Nut

    Collecting Nut Borderline Hoarder

    Time to switch to plastic coins. We can recycle them.
     
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  11. -jeffB

    -jeffB Greshams LEO Supporter

    No, for accountants I'm pretty sure it's one to change the light bulb, one to audit the bulb stock list, one to audit the ladder stock list, one to audit the power records for the fixture...
     
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  12. Mountain Man

    Mountain Man Well-Known Member

    Make them out of titanium just once and they should last lifetime. LOL
     
  13. justafarmer

    justafarmer Senior Member

    If you were to eliminate the production of the cent and/or nickel - the production overhead allocated to this production would be reallocated to the production of the remaining coinage - cause their cost of production per unit to increase.
     
    Razz likes this.
  14. -jeffB

    -jeffB Greshams LEO Supporter

    Of course, then the metal cost would be four times as high, and good luck finding a material to use for dies...
     
  15. Mountain Man

    Mountain Man Well-Known Member

    Titanium dies of course or diamond. LOL And the initial cost of producing them would be offset by their longevity. Of course I'm just giving my imagination a flight of fancy.
     
  16. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    Lordy.... Could you imagine how simple it would be to counterfeit a plastic coin?
     
  17. Jim Dale

    Jim Dale Well-Known Member

    i remember when we lived in Germany about 1953-1957 while my father was stationed at Landstuhl Military Hospital, by allowance was 5 cents a week. I was in shock when he gave me a paper bill for 5 cents. I thought he was ripping me off. I wish I had saved those bills. Anyway, does the cost to print money exceed their face value? If not, do a way with cents and print all money? Just a thought.
     
  18. manny9655

    manny9655 Well-Known Member

    That would be a huge mistake. It would only add fuel to a hyperinflation fire that I see coming in the near future. The Mint is already prepared to change the composition of ALL our coins. We don't need any more debased currency.
     
  19. justafarmer

    justafarmer Senior Member

    This day in time the primary purpose of coinage is to facilitate face to face commerce. Any loss or gain realized from the production is peanut money relative to the US budget.
     
  20. Michael K

    Michael K Well-Known Member

    When they make a nickel that same nickel is used for thousands of transactions. It doesn't matter if the metal is worth fractionally more than the face value.
    When you add in labor, equipment, etc. it's always going to cost more than face, besides just the metal content.
     
    Last edited: Jan 17, 2021
    YoloBagels and Mark1971 like this.
  21. -jeffB

    -jeffB Greshams LEO Supporter

    It's true that minting a nickel costs more than just the material costs. But if the metal value in the coin exceeds its face value by enough, for long enough, they'll start disappearing from circulation -- even if it's "illegal" to melt them.
     
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