I recently recieved several inquiries as to why I included “Stash $10.00 in nickles” on one of my posts – Evaluating Goals.
Saving nickels is supposed to be a hedge against inflation. Here is the reasoning: The United States nickel is made up of 75% copper and 25% nickel. Should inflation take hold and the cost of everything begins to increase – the pure base metal value of the nickel will increase as well – far beyond the .05 cent face value of the coin. Thus – buy a nickel for .05 cents today – and the raw material value of the coin may increase dramatically tomorrow.
The current raw material value of the nickel as of 8/23/2010 was .0536 cents. If you feel that inflation will be an issue in the future – get some nickels.
There has been a lot of talk and conjecture that the US Mint will soon change the composition of many of the coinage in the US. The reasoning is the same as why stashing away nickels may be a good idea – they are worth more than their face value.
Check out this article: Coin Composition Change Included In Obama’s 2011 Budget
For myself – I believe that inflation is going to become an issue. With the amount of money that has been pumped out of the Federal Reserve with no form of backing – I believe inflation must take hold at some point. So – I am going to be stashing away some nickels. A good method to store nickels is to use a .50 caliber ammo can.
Something to think about…..