Circulating Nickel Depletion

[Common Cents]

I agree with the OP's premise. I have been directing most of my metal collection toward copper pennies, due to their superior face value/melt value ratio. And I had always thought that nickels could be accrued more leisurely, because they would always be there for the taking. But I have now come to think that the nickel supply could dry up pretty quickly, because banks would quickly cut off the spigot once they had enough people coming in and asking for nickels. I also think that the government might 'recall' all of the nickels of the current composition, while simultaneously issuing a new, debased coin. The Canadian government is already actively engaged in the reclamation of their older nickels that are almost pure nickel. So bottom line is that I have begun to ask for a few rolls of nickels each time I go to the bank for pennies. It's better to be early to the party than late!

[palmvtree]

If the nickel is simply removed from cirulation and anyone in the media reprots the value being enough to keep them, then they will disappear very quickly.

If they are replaced by the half dime, or another coin significantly different then it will again diappear faster.

If it replaced with an iron slug of the same size they would continue to cirulate just like the half dollars are still found today along side a few silver ones.

Perception, it is all based on what people think. As long as Brittnay Spears is a bigger news story than world revolution then nickels will be the last thing Americans worry about.

[list=][/list]

I often thought that one day the fed would just eliminate the penny, everyone rounds up all costs and then the new nickel would possibly be a "zincoln" printed with five cents on the reverse. I know I have read previous articles years ago that the government should eliminate the nickel and rebase the penny to five cents. Either way, I will continue to diversify my portfolio and sort-n-stack nickels and pennies for now!

[hejira11]

Although I agree initially with it takes money to make money.. I also believe that it takes a conviction to believe what you are doing is right for the long term, no matter what the pundits or the skeptics say (or your friends/coworkers)...

Well said!

[VWBEAMER]

Wow, if they did away with Nickels and made pennies worth 5 cents i would be one happy camper!

[palmvtree]

If the nickel is simply removed from cirulation and anyone in the media reprots the value being enough to keep them, then they will disappear very quickly.

If they are replaced by the half dime, or another coin significantly different then it will again diappear faster.

If it replaced with an iron slug of the same size they would continue to cirulate just like the half dollars are still found today along side a few silver ones.

Perception, it is all based on what people think. As long as Brittnay Spears is a bigger news story than world revolution then nickels will be the last thing Americans worry about.

[list=][/list]

I often thought that one day the fed would just eliminate the penny, everyone rounds up all costs and then the new nickel would possibly be a "zincoln" printed with five cents on the reverse. I know I have read previous articles years ago that the government should eliminate the nickel and rebase the penny to five cents. Either way, I will continue to diversify my portfolio and sort-n-stack nickels and pennies for now!

I found the link to the Feb 1, 2007 article about rebasing the value of a penny. Anyone else remember this? I am also posting a topic on the copper forum for feedback. After reading this article on coinflation years ago, I stepped up the sorting habit and never looked back. My favorite quote..."Plus, the money would go disproportionately to the poor (and to people getting allowances from their parents), more than offsetting any “rounding tax” from eliminating the penny." More like the money would go disproportionately to anyone who reads articles and hoards on realcent! http://www.nytimes.com/2007/02/01/busin ... d6&ei=5090

[jasmatk]

I think they would deplete fairly quick becouse i see the fed starting some kind of alloy recovery program like canada

[999Ni]

http://www.gsnmagazine.com/node/22606?c ... egislative

[Johnny99]

I'm surprised there hasn't already been an attempt to corner the nickel market. I've only been pulling nickels out of my pocket change for the past 4 years & have several multiples of my $8.25 share. After seeing the statistics, i'm headed to my bank tommorow to pick up a brick and get closer to the 1% club.

[VWBEAMER]

Welcome. I have 1000 bucks in US nickels, but wish i had bought silver with that money now.

BTW, i'm holding on Nickels, not buying, not selling.

I'm surprised there hasn't already been an attempt to corner the nickel market. I've only been pulling nickels out of my pocket change for the past 4 years & have several multiples of my $8.25 share. After seeing the statistics, i'm headed to my bank tommorow to pick up a brick and get closer to the 1% club.

[neilgin1]

If we have hyper inflation, than the Nickel may not be need as day to day currency. Everything can be rounded to the nearest dime, we are almost there anyway.

If we encounter hyper inflation, then the nickel WILL be needed in the day-to-day currency regime that replaces toilet paper FRNs and debased coinage.

Protect your nickels, Americans! It's the only thing of value in your entire financial system.

well spoke, 90% silvers, marvelous way to save money, bricks of nick's are just gem's. You actually save real money. We're in this trouble today, because the prevailing mantra for decades has been "consume, consume". Cant trust the banks, so stack the bricks.

[aristobolus]

There are some other things to factor into the formula of what nickels and pre-1982 pennies might be worth if things get really bad. The price for precious and base metals is partially determined by the value of the US $ and partially by demand. Kitco has a cool webpage to show the effect. http://www.kitco.com/kitco-gold-index.html

If the economy is similar or worse to what the world experienced in the 1930s, unemployed people will not buy durable goods. Demand for the metals that are used in the manufacture of those items will drop precipitously and with that drop in demand we will see a corresponding reduction in price. However, on the other hand, the US dollar will be seen for the worthless fiat currency that it is and prices will go up.

Which factor will be the more influential of the two? Which will have the heavier weighting in our formula?

Solid, thoughtful post.

[shinnosuke]

There are some other things to factor into the formula of what nickels and pre-1982 pennies might be worth if things get really bad. The price for precious and base metals is partially determined by the value of the US $ and partially by demand. Kitco has a cool webpage to show the effect. http://www.kitco.com/kitco-gold-index.html

If the economy is similar or worse to what the world experienced in the 1930s, unemployed people will not buy durable goods. Demand for the metals that are used in the manufacture of those items will drop precipitously and with that drop in demand we will see a corresponding reduction in price. However, on the other hand, the US dollar will be seen for the worthless fiat currency that it is and prices will go up.

Which factor will be the more influential of the two? Which will have the heavier weighting in our formula?

Solid, thoughtful post.

Thanks, aristobulus, but I am still on the fence how things will turn out. I guess I lean more towards an inflationary cycle that destroys what's left of the economy with a depression to follow. However, in any scenario our heroes, gold and silver, will stand as the only true store of value and it will be well with those who can hang on to them during the tough times.

[lakehouse]

I just did a quick calculation. If every US citizen had an equal amount of nickels based on the amount of 1938-2010 minus the silver. Each person would have about 165 nickels. That's $8.25 or a little over a pound and a half.

Memorial lincolns $14 per person

Copper Memorial $5 per person
Zinc Lincolns $9 per person

Am I missing something or are the numbers more like $165/person for nickels and $507/person ??

[Johnny99]

51,986,323,917 nickels
308,745,538 US population

168.38 nickels per person
$8.40

[68Camaro]

Guess i have enough for my entire neighborhood!

[shinnosuke]

Guess i have enough for my entire neighborhood!

Only until your neighborhood finds out about them. Then there won't be enough for anybody.

[schockergd]

How many of those nickles are currently being held by banks & central banks?

I'd bet more than 50% of the total number of total nickles in circulation are held by banks , maybe even 75%. When the material changes AND the government decides on culling them , the number will go down quite rapidly.

My personal nickle goal is to have $1k in facevalue before they switch over currency , I don't know if I'll hit the goal or not , buy I'm buying $10 to $20 a week and setting it aside.

[Investin Cents]

I am a big fan of the nickel as well for all the reasons previously stated. I have much, much more than my share. My family thinks I am a little obessed with them. But when I explain the nickels value and that is it the same as keeping any type of emergency $ on hand for other reasons, it does not seem so strange.

The only time I spend nickels is when I find the rare rusted or corroded ones - there very few per bag I have, but some nonetheless. I don't want them to corrode the others in the bags!!!!

Yes, I have thought that I could spend a few bags on silver as well and have made more money,but I could say the same for all the FRN's I have stashed, the savings accounts earning next to $0 interest I have, the retirement funds in the overpriced and perilous stock or bonds markets, etc. Diversification is the key - no one knows the future for sure - no one!

Good luck everyone!