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c140cessna
Penny Collector Member
USA
419 Posts |
 Posted - 04/06/2007 : 09:06:26
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Guys,
As you know, I'm playing around a bit with the Trading of Hoarded Metals....mostly just interested in poking the market a bit to see what happens.
We also know about the melt/export ban here in the USA on Pennies and Nickels....and the argument of not being able to realize short-term profits due to the inability to sell our hoarded US COINS into the scrap metals market. For the time being we can do a lot of trading between fellow hoarders, but that is about all there is for right now...
So on to the real question: Would there be an interest in the USA for Canadian Cu-Ni (made from 1982-1999)...they are 20 lbs per $100 Face Value (2000 coins)......and after all the math have a "Spot Priced Metal Content Value"...from here on called "Metal Value"... of 8.15 cents each = $0.0815 (metal pricing data as of 4-5-07)
Simple Math = 2000 x $0.0815 = $163 Metal Value.....per full box ($100FV CND).
Because these are not US 5 cents......draw your own conclusions as to market limitations....
At a minimum, here in the USA, there should be a higher level of interest in hoarding these over the US Nickel, simply because there is a higher probability of being able to "realize" the metal value on a shorter time horizion.
I'm mostly curious in the interesting discussion this may generate, so I'll try to not commercialize this area of the forum too much......but you all know I often have offers in the Buy/Sell/Trade area.....I might put an offer over there for something like this...as well as on Ebay.
Please keep in mind a few points that are kind of nice about this idea of Hoarding Canadian Cu-Ni Nickel:
1) USPS has flat rate $8.10 boxes that would easily ship a full $100FV box of 20 lbs ....possibly even load it up with 40 lbs...that is about the structural limits of thos boxes. Official USPS weight limit is 70 lbs for these boxes.
2) Some hoarders have expressed resistance from their local banks to give / order full boxes of US 5 cents....this would solve that problem, by creating a ready supply of Cu-Ni for their hoard.
3) You would not have to go to the bank to get your Cu-Ni hoard....it would be delivered to your door....by the mail-man.
4) Previously mentioned better ability/higher probability to realize metal value.....
5) DOWN-SIDE: You have Canadian Coins...but, if you wanted, you could pass these into curculation just like the US Nickel, all vending machines like them, even the US Coinstar takes them without issue (note: Coinstar Machine will not accept the newer "Steel" Canadian 5 cent piece.). So, really no functional down side....other than your bank may have an issue with taking a bunch all at once...
What do you think a market would be willing to pay for such a "product"....keeping in mind the current metal value of $163UDS per 20 lb ($100FV CDN)?
Here are some quick calculations of DELIVERED purchase price, percentage of metal value, and "potential profit" the buyer could realize if able to sell for full metal value.....I know this is not reality, but I had to create a basis of some sort....I do not know what % of metal value an industrial user of Cu-Ni would pay....
$100USD, 61.3%, $63USD
$110USD, 67.5%, $53USD
$120USD, 73.6%, $43USD
$130USD, 80.2%, $32USD
$140USD, 85.9%, $22USD
I'm very interested to hear what you guys have to say about this. If you are an American currently hoarding the US 5 cent....I think there are a lot of good points to switching over to this alternative....
Keep an eye open for a offer in the Buy/Sell/Trade.....
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Edited by - c140cessna on 04/06/2007 11:23:24 |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 04/06/2007 : 11:24:06
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The market for .99 pure Canadian nickels here in the United States is a reality already. It's still in its early stage of development but it appears to be gaining steam with this red hot international nickel market.
The reasons are that it is not illegal to melt Canadian nickels here in the U.S.A. In addition, it is very hard for an investor who wants to buy pure physical nickel bullion to find it. Corporations who use nickel don't want to sell at this time because they know it would only cost them more to replace if they can find it. Add in the fact that Canadian nickel are legal tender as you stated. So you can't lose your entire shirt as you might if you were holding on to nickel bullion bars if the market was to tank.
Like 90% U.S. silver coins, I don't think most Canadian nickels will ever hit the melting pot for years to come. I could be wrong about that. It depends if the long term nickel market continues to grows or not.
Who can tell me if there is an export ban on Canadian nickels out of Canada?
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For good times to come or bad times to come, now is the time to save your copper or nickel coins. |
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c140cessna
Penny Collector Member
USA
419 Posts |
Posted - 04/06/2007 : 12:11:02
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Agree - the .999 Ni is Hot.....but my question is really geared towards to Canadian Cu-Ni (75%Cu + 25%Ni)...minted from 1982-1999.
In a $100 FV CND box, there is 20 lbs or $163 USD of metal value.
If this can be delivered to your door for say, $110-$115/20# box...this is a nice, alternative form of Copper/Nickel hoard....with possible immediate profit potential to the buyer/hoarder...
I think if one wants to hoard "Nickels" - this is a great alternative...for the reasons stated above in my original post.
BTW: I now have an offer in the Buy/Sell/Trade.
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Edited by - c140cessna on 04/06/2007 13:23:41 |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 04/06/2007 : 12:39:47
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You should try contacting a metal recycler and see what they would be willing to pay for a box of Canadian nickles. From what I gathered from reading about cupro nickel alloys 75% 25% is not a commonly used mixture. But it is fairly easy and efficient to add copper or nickel to change the cupro nickel into the desired ratio. Separating the two is not terribly difficult either, but it not as efficient as recycling to a different cupro nickel blend.
That being said, there are relatively few metal recyclers who are specifically interested in cupro nickel, reblending, reselling. It seems to be a bit of a speciality. In any case, my point is that I believe it is necessary to go to one of the few recyclers that commonly deal in cupro nickel. Otherwise you will likely get low ball crap offers probably based on just the copper content. I get the impression that most recyclers are wary of cupro nickel just because they are not use to seeing it often...so they are conservative on their offers... |
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Hoarding/Market potential for Canadian Cu-Ni???
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