An Interesting situation- 999 nickel

[Robarons]

I had an interesting conversation with a local coin dealer. The dealer had 3000 pounds of 999 Canadian nickel and tole me a story on how he tried to sell it.

He said that he called the local scrap yards- there are about 14 of them here in 1 mile radius of each other. He tried to get a quote what they would pay for Canadian Nickel. This is high quality stuff- 999 purity guaranteed by the Canadian Govt so a deal should be made easily and darn close to spot. However the response I got wasnt what I was expecting.

He spoke to one of the head guys of the scrapyard. The coin dealer who had the 999 nickel is licensed, etc so has all the paper work covered- it was just a matter of making the deal. The guy offered him $4.50 a pound That less then face! I was shocked to hear this story and these scrapyards are competitive too!

Which raises the question- lets say you have 3000 pounds of 999 nickel and wanted to sell. Would you have a hard time selling them to scrap yard or intentions to melt for industry for users to use (not to other investors or coin guys)? What also comes to mind is that would scrappers or users of 999 be afraid to buy Nickels because they think their illegal to melt? And how much under melt should they buy at?

These ideas parallel pennies if they ever become legal to melt- that eventually some one is going to want to buy the copper/nickel to use than invest

[TXBullion]

I could see the reason. For a one time deal sure. I think what will happen is coin will need to go to highroller where he has a deal with a refiner. He processes the coin, (double checks) you get your payout and he charges a minmal fee.

[mbailey1234]

If that's the case then we are all most likely wasting our time. I could see our government snatching up all they can before they ok anyone else to melt them down. If we all had to ship to an "authorized" location the shipping would eat so much of it up I would think it would get kind of painful.

If we had all that copper and nickel break loose and hit the market say over a period of a couple of years, in the "big picture" is this going to be enough to drastically change the supply which would tend to hammer the price? Or is this going to just be a few drops in bucket? It seems to me it would be a pretty big supply coming in but I don't have a grasp on how big the market is. I guess on a global scale maybe it wouldn't be so much?

[TXBullion]

I think there will be two components of the market, bullion and scrap....

[ZenOps]

Metal scrappers usually don't scrap monetary metals, nickel included, especially in coin form.

Many coin dealers hate sending in coins that are anything above Good or with a mintage below a few million. There really is no point, it will just be melted down to create new coins anyhow. Normally this would be a re-assay but nowadays with XRF scanners, it is totally unnecessary to destroy any coinage to be remade as new coinage. They would much rather re-sell it back into circulation, especially anything that is .999 fine that might be remade into .25 (which is just wrong on so many levels) IE: Its just plain wrong to melt down a 2-ounce British copper cartwheel from 1797, when it might just be remade into a 2013 Euro 10 cent piece.

In otherwords, they greatly prefer to melt down the kitchen sinks, towel racks, and even ship hulls before they resort to melting down coinage (coinage has typically only been melted in time of war or extreme economic hardship.)

In coin form, a $100 box of Canadian nickels was worth 40 barrels of oil in 1970, and once melted it *never* comes back - noone in the world makes a pure nickel coin anymore. Its strange, but .999 silver is actually quite common compared to modern .999 nickel coinage.

The coinage *is* money, the actual process of melting destroys value. .999 scrap nickel in the form of a one tonne ingot is worth far less than one tonne of finished coins. You could probably try to Ebay the "Canadian Nickels by the pound" on Ebay for $13 to 15 per pound.

IE: http://www.ebay.ca/itm/300-LBS-POUNDS-o ... 0853583522

You would probably make less trying to mint a one ounce .999 nickel coin just due to production costs:

http://coppercave.com/copper/index.php? ... ductId=355

About $8 per ounce for .999 generic nickel rounds, and about $1.60 per generic copper round seems to be the point where one can make a profit.

[PolishPunisher]

Why would anyone ever sell .999 nickel coins at the melt price? Pounds of .999 sell on realcent for $12/pound and ebay for $15.

[TXBullion]

Why would anyone ever sell .999 nickel coins at the melt price? Pounds of .999 sell on realcent for $12/pound and ebay for $15.

99.9999% of the world doesnt know about realcent and ive never seen 3,000 pounds of nickel sell on ebay for 15$ . I dont think it could be done

[NHsorter]

I dont care how many people know about it I would have bought the 3000 pounds for 4.50 in a heartbeat and made a decent amount of money on it. Might not have found a buyer for all at once, but eventually there is a lot to be made on this I would think.

[PolishPunisher]

Tell the guy I'll pay $6.50/pound shipped.

[Robarons]

Well the guy didnt sell at $4.50- he declined and is selling it locally at a premium of $10 a pound (but would have sold at say $7 or $8 a pound ot get a quick turnover back into cash)

Yes, 999 can be considered bullion and are easily invest able, hence you can get a premium to spot. However there might be a time where industrial demand will push Nickel back to $20 a pound or more (think $50 a pound) and at these levels investment demand may reduce to paying spot or a healthy discount to spot (think 90% or sterling scrap at $50 oz silver)

If that ever occurs you may have to sell at the spot price to industrial users. However the industrial users may not accept or want to use .999 nickel for their applications which might be a bad thing. So what I am trying to figure out is if this story is an isolated event or common across the country?

[frugi]

I was selling .999 Ni nickels to a refiner, and they were buying all I could bring in. I have not done it in years, and it was only a short period of time, back when Ni was around $29.00/lb. I was getting good money for them, and I posted about it on here at the time, but it has been a few years. That was the whole reason I ever got into Ni nickels. Now I have sat and watched the price per pound steadily decrease to the gutter where it currently is. Man, I miss the good old days!

[ZenOps]

Ebay for bulk nickels is just like ebay for bulk pennies.

Once you have established the initial sale and purchase, usually subsequent sales never even hit Ebay.

[frugi]

I was selling .999 Ni nickels to a refiner, and they were buying all I could bring in. I have not done it in years, and it was only a short period of time, back when Ni was around $29.00/lb. I was getting good money for them, and I posted about it on here at the time, but it has been a few years. That was the whole reason I ever got into Ni nickels. Now I have sat and watched the price per pound steadily decrease to the gutter where it currently is. Man, I miss the good old days!

After the price started declining it wasnt worth it to drive around the midwest buying Ni nickels from all the coin stores, and my refiner was only buying from me in 1000 pound lots, so I had to quit selling them to the scrapyard, I just wasnt able to get as much in......but I didnt give up, I still bought as much as I could, and I would sell them on eBay, at one time I was the very first person to be selling Ni nickels on eBay, and then before I knew it, there was many other people doing it.........but I was doing it first before anyone else.....here are some of my feedbacks I received back in 2007....I have hundreds of feedbacks from just selling Ni nickels, but you get the idea......Ahh! the good old days, I cant believe I was getting $20/lb. back then, and now it is so low....



Coins arrived today in good shape. Thanks for the extra's! Good Ebayer! Buyer: pohl3630 ( 1098) Jun-04-07 17:04
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190106754555) US $10.00

Coins arrived today in good shape. Thanks for the extra's! Good Ebayer! Buyer: pohl3630 ( 1098) Jun-04-07 17:03
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190106755904) US $10.00

Coins arrived today in good shape. Thanks for the extra's! Good Ebayer! Buyer: pohl3630 ( 1098) Jun-04-07 17:03
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190106755664) US $10.00

Coins arrived today in good shape. Thanks for the extra's! Good Ebayer! Buyer: pohl3630 ( 1098) Jun-04-07 17:03
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190106755214) US $10.00

* * * * * Five Star Seller.....Flawless Transaction ! Buyer: hiconian-headhunter ( 86) May-25-07 17:08
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190106756801) US $10.00

Thanks 4 bonus, Really appreciate them ! Buyer: hiconian-headhunter ( 86) May-25-07 17:04
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190106756680) US $10.00

Above and beyond to accommodate buyer ! Buyer: hiconian-headhunter ( 86) May-25-07 17:01
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190106756536) US $10.00

As described, Well packaged, Fast shipping ! Buyer: hiconian-headhunter ( 86) May-25-07 16:57
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190106756350) US $10.00

No complaints, service was great Buyer: wacholtz2006 ( 727) May-23-07 13:44
1964 Heavy Cameo Canadian Ni Nickel Roll of 40 (#190105572781) US $18.75

good delivery,communication and coins Buyer: wacholtz2006 ( 727) Apr-15-07 13:51
1964 Heavy Cameo Canadian Ni Nickel Roll of 40 -NR- (#190097778982) US $23.50

Great Coins As Stated would/will buy from again Buyer: night_hawk101 ( 71) Apr-11-07 09:35
1964 DMPL Canadian nickel five cent prooflike -NR- (#190096321038) US $1.00

Thank you. Coind recieved. Buyer: burtoo1 ( 328) Apr-03-07 15:46
1964 DMPL Canadian nickel five cent prooflike -NR- (#190093947849) US $1.00

Excellent Seller!!! AAA+++ Buyer: vinyl72 ( 936) Mar-26-07 05:38
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1 LB (#190091090173) US $15.50

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:09
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1 LB (#190090060531) US $18.00

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:08
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1 LB (#190090060831) US $18.00

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:08
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190090257679) US $12.00

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:08
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190090258108) US $12.00

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:08
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190090258261) US $12.00

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:07
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1 LB (#190089529299) US $18.00

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:07
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1 LB (#190089529605) US $18.00

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:07
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1 LB (#190089529892) US $18.00

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:06
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1 LB (#190089528586) US $13.00

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:06
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190087693908) US $15.50

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:06
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190087693770) US $15.50

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:06
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190087693731) US $17.50

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:06
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190087693571) US $15.50

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:05
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190087693468) US $16.49

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:05
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190087693222) US $15.50

Excellent. As described. Great coins. Super fast shipment. Excellent ebayer. A+ Buyer: lironman2 ( 229)
No longer a registered user Mar-25-07 17:05
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1/2 LB (#190087693000)

Great Nickels. Thank you. Buyer: burtoo1 ( 328) Mar-23-07 10:55
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1 LB (#190091090449) US $18.00

Thanks. Coins arrived in good order. Buyer: burtoo1 ( 328) Mar-23-07 10:55
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1 LB (#190090060705) US $18.00

real nice product quick shipper Buyer: cbaker69216nvp ( 197) Mar-22-07 16:52
Lot of Pure Nickel Bullion Rounds .999 pure Ni 1 LB (#190091090340) US $15.00

[frugi]

Ebay for bulk nickels is just like ebay for bulk pennies.

Once you have established the initial sale and purchase, usually subsequent sales never even hit Ebay.

yes to this statement 100%, I realized I was able to sell regularly to one person who was buying nickels from me like mad.....all i had to do was contact him by email, and we made deals like mad men for a good long time (until the price started dropping on Ni).......

[Market Harmony]

I think there will be two components of the market, bullion and scrap....

Isn't the name, "Market Harmony" pretty cool...

[frugi]

I think there will be two components of the market, bullion and scrap....

Isn't the name, "Market Harmony" pretty cool...

yeah, actually, looks like you thought it out a bit.......
it is almost something that defies its own existence.
Harmony in the Market, ha!