When a Nickel is Worth 7 Cents...

itsnotjustme

I noted a Numismatic News article stating the base metal value of a nickel is now 7 cents. This is now the second currently cirulating US coin going above face value for metal (pre-82 copper as first). And production cost for a nickel is 10 cents (including the metal). Makes the mint prices for the two roll nickel sets not seam as outrageous.

Smoker

The zinc penny is running a strong third:

Description Denomination Metal Value - Metal % of Denomination

1909-1982 Cent $0.01 $0.0229220 229.2200% (95% copper)
1946-2006 Nickel $0.05 $0.0681619 136.3200%
1982-2006 Cent $0.01 $0.0086309 86.3000% (97.5% zinc)
1965-2006 Dime $0.10 $0.0217824 21.7800%
1965-2006 Quarter $0.25 $0.0544167 21.7600%
1971-2006 Half $0.50 $0.1088337 21.7600%
1971-1978 Ike $1.00 $0.3091840 30.9100%
1979-81,99 SBA $1.00 $0.0859196 8.5900%
2000-2006 Sac $1.00 $0.0609017 6.0900%

Sept. 29:
Copper $3.4393/lb Zinc $1.5180/lb Nickel $14.4167/lb

Source: Coinflation

Steve27

"Makes the mint prices for the two roll nickel sets not seam as outrageous."

ROFL

majorbigtime

"a nickel isn't worth a dime any more"

...Yogi Berra

Shamika

<< <i>"a nickel isn't worth a dime any more" >>


Give it time.

fastrudy

what is the problem of getting $50,000. in nickels and selling them to a smelter for $66,000.?
Is this legal?

Why isn't everybody doing it?

itsnotjustme

The metal prices are for typically pure ingots. You $50,000 of nickels needs much processing before it is $66,000 of metals for the market. But the cost that goes in is the metal cost. (Unless you could smelt them and sell the pre-mixed alloy....)

Pentimento

<< <i> (Unless you could smelt them and sell the pre-mixed alloy....) >>



Sell it back to the mint at a 30% discount over the alloy they must purchase for nickel production.

itsnotjustme

And your removal of so many nickel will drive the Federal Reserve Banks to order more which will drive the mint to produce more....

RichieURich

A lot more people are now paying attention to the fact that nickels and bronze (pre-1982) cents are now worth in metal more than face value. When this has happened in the past, many coins were melted. Should the metals prices continue to increase, eventually this should start happening with nickels and bronze cents.

Baley

Yes, Gresham's law will eventually correct many of our anachronistic coins,

why is a nickel bigger than a dime? why is one cent coin bigger than a dime?

why do we have a one cent coin at all?

Coxe

<< <i>Yes, Gresham's law will eventually correct many of our anachronistic coins,

why is a nickel bigger than a dime? why is one cent coin bigger than a dime?

why do we have a one cent coin at all? >>



Why have the cent, nickel or quarter? They should all be dropped and the other coins redesigned/resized (and add $5 and $20 coins) in 2010, if we can wait that long. Retire the cent at the century mark and the quarter at the end of the state quarter program. It is just natural. They have been obsoleted by inflation. The dime could arguably go too, but later.

cladking

<< <i>The metal prices are for typically pure ingots. You $50,000 of nickels needs much processing before it is $66,000 of metals for the market. But the cost that goes in is the metal cost. (Unless you could smelt them and sell the pre-mixed alloy....) >>




Alloys of this nature would not be processed but used as is. There are a number of stainless
steel alloys that use copper/ nickel in a 3: 1 ratio. Even if a different ratio were needed they
would simply adjust it by the introduction of additional copper or nickel.

pontiacinf

<< <i>

<< <i>The metal prices are for typically pure ingots. You $50,000 of nickels needs much processing before it is $66,000 of metals for the market. But the cost that goes in is the metal cost. (Unless you could smelt them and sell the pre-mixed alloy....) >>




Alloys of this nature would not be processed but used as is. There are a number of stainless
steel alloys that use copper/ nickel in a 3: 1 ratio. Even if a different ratio were needed they
would simply adjust it by the introduction of additional copper or nickel. >>



slam dunk as always

jonesy

Very interesting!!