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Hyper Report: 120123 – Save those Nickels

from HyperReport:

Please prepare now for the escalating economic and social unrest. Good day.

3 comments to Hyper Report: 120123 – Save those Nickels

  • Travis

    Let your kids sort your nickels and trade then in for silver

  • Zyll

    Go to the youtube site for this video, and then click on the source link, which is an article at LewRockwell.com. I personally think that all commodities including nickel, will go up. However as history has shown, copper and nickel coins are government-issued base-metal tokens *without* intrinsic value while gold and silver are MONEY. You store copper and nickel and you have the problem of selling it *as base metal scrap* during a hyperinflation. Food will command much more of a premium, IMHO, than scrap metal.

    The only reason I would consider saving nickels is the argument titled “What if Uncle Sam Decides to Drop a Zero?”:
    —–
    As previously noted in SurvivalBlog, inflation of the US dollar has been chronic, cumulative, and insidious. So much so that turns of phrase from old movies like “penny candy” and “its your nickel” (to describe the cost of a call on a pay phone) now seem quaint and outdated. When inflation goes on long enough, the number of digits required to express a price grows too large. (As has been seen with the Italian lira, the Zimbabwean dollar, and countless other currencies. One whitewash solution to chronic inflation that several other nations have chosen is dropping one, two, or even three zeros from their currency, in an overnight revaluation, with a mandatory paper currency exchange. The history of the past century has shown that when doing so, most governments re-issue only new paper currency, but leave the old coinage in circulation, at the same face value. This is because the sheer logistics of a coinage swap would be daunting. Typically, this leaves the holders of coinage as the unexpected beneficiaries of a 10X, 100X.or even 1,000X gain of the purchasing power of their coins. Governments just assume that most citizens just have a couple of pocketfuls of coins at any given time. So if a currency swap were to happen while you are sitting on a big pile of nickels, then you would make a handsome profit. To “cash in”, you could merely spend your saved nickels in the new currency regime.
    —-
    Now, let’s review the history of the nickel to understand how the government sees nickels. In 1866, silver half-dimes increased in value over their face value during post-civil-war reconstruction, and so the Treasury devalued them with the cupro-nickel five-cent coins we know today.

    From Wikipedia: “The new copper-nickel coin was legal tender for up to one dollar, and would be paid out by the Treasury in exchange for coin of the United States, excluding the half cent, cent and two-cent. It was redeemable in lots of $100 for banknotes.”

    NOTE: Only in 1933, the same year gold coinage was recalled, was the nickel was made legal tender without limit. The Coinage Act of 1965 made all US coins and currency legal tender at face value, but I submit to you that if “Uncle Sam Decides to Drop a Zero”, I bet he would likely include, in the legislation, a legal tender limit for transactions in the base coinage in circulation. You would be forced to spend your hoard a little at a time, probably a max of $2.00 face at a time. Or, you could trade them in for the new banknotes and hope you can still find physical silver or gold for sale at any price.

    I see this as a losing trade. I still think, at this point in history, that physical silver is the route to maximizing your returns.

    • Troy

      You must not have heard about the 18 year old man, that sorted hundreds of millions of penny with machines, and became a millionaire in less than a year. He sold all the good pennies for near 2 cents each.

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