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deleted
42 Posts |
 Posted - 07/26/2008 : 01:00:12
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I dont expect the SHTF scenario to happen, but I also don't expect our country to be the greatest, most industrial, and such country we have always precieved ourselves as being.
So In your opinions, in 15 years, will a hoard of Jefferson Nickels be worth more than if I had invested the same amount of money in a mutual fund or somthing?
I see the here-and-now value of the pennies, but the current margins for nickels seems just too small. Even if Nickels hit the 7 cent mark again, after the cost of melting the alloy, the profit margin just seems razor thin.
So what do you guys think? And also, if any of you guys are into the penny hoarding, is it too late to get into that? Nickels seem like a groundfloor operation, I just don't know if its gonna go anywhere.
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Bobby Deese |
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misteroman
Administrator
USA
2565 Posts |
Posted - 07/26/2008 : 01:35:08
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| If anyone truly knew the answer we'd all be doing it.Just diversify and have fun while doing it |
Buying CU cents!!!! Paying 1.2 unlimited amounts wanted. Can pick up if near Ohio area. |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 07/26/2008 : 14:04:48
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Wish I knew the answer... But I save all the US Nickels I find sorting Canadian Nickels.
I don't subscribe to the WTSHTF preparedness plans but am not going to say others are wrong to prepare for what they believe will happen. For the most part all the WTSHTF preperations are good sensical planning for daily life, personal financial security, and natural disasters too.
I do prepare extensively for natural disaster situations, but that is not why I hoard nickels and pennies. Rather I have a bunch of other reasons.
It is not a matter of if, but when, the US Mint debases the nickel (likely to steel) and then nickel will need to be sorted to get the CuNi ones out. It will never be easier to collect nickels.
I don't compare holding coin to potential mutual fund returns. I allocate money to the markets for the markets sake and on its own merits. I know that I could make or lose big money in the market.
Rather CuNi nickels represent part of my cash reserve and basic savings. If you get zero or near zero on your savings, you will not be disappointed if you never profit from your nickels. However, if your nickels beat the bank account, you will be very happy.
Unlike the market or real estate, nickels will never drop in value below what you paid for them (always spendable as a nickel) ignoring inflation. However the nickels might double, triple or more in value (silver coins are now 13X face) and my bank account will never do that (or keep up with inflation).
Other benifits include:
A bank failure is not going to stop me accessing my coin.
It is a little harder to spend coin fast and it makes you think about its value when you have 20lbs equal 100 dollars. So coin facilitates savings.
With blocks of coin around you will never be on your last dollar! Save 10 boxes of nickels over time and you will have enough to feed your family for a good while if you lose your income or worse.
And finally I like finding the occasional silver war nickel buffalo/indian head, or international coin for my collection. In the US you may find pure Cdn nickels occasionally (my main reason for playing with nickels in Canada).
Think about how these reasons might apply to you and act accordingly. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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fb101
Administrator
USA
2856 Posts |
Posted - 07/26/2008 : 16:27:25
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| There's one advantage that makes nickles better than mutual funds. They don't lose money in a down market. I also am not sure about he WTSHTF, but I consider it a very real possibility. It's a cinch we cannot tax and spend -- OR -- Not tax and spend forever. We as individuals cannot spend all our tomorrows today either, which is what so many people do. These are real threats. |
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Edited by - fb101 on 07/26/2008 16:28:21 |
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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
Posted - 07/26/2008 : 17:41:56
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I was talking to my grandmother today. She is 92 and her mind is clearer and sharper than most 20 & 30 somethings. She experienced the first depression first hand.
She has been paying attention to whats going on in this country and the world and she is scared to death. She says this is too much like the late '20s & early 30's... I have never seen her this upset before. She told my mother and uncle (she has a living trust) in no uncertain terms to get her money out of the bank. Yes she is well aware of the FDIC...
I dont know if we will have a SHTF scenario like we discuss a lot on this forum or not. But I do believe we are heading for some truly dark times in this country. There is going to be a lot of pain and misery. When you crunch the numbers, it is inevitable.
Every 80 years or so, or about every 3 generations this country has experienced an epic event that forever changed our destiny. Approximately 80 after the Revolution we had the Civil War, 80 years later Depression I, it's been about 80 years now...
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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
Posted - 07/26/2008 : 17:48:15
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I just realized I hijacked this thread. My apologies.
In response to the OP, legacypac gave an excellent answer.
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 07/26/2008 : 18:28:19
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quote:
Originally posted by Bluegill
I just realized I hijacked this thread. My apologies.
In response to the OP, legacypac gave an excellent answer.
I like that answer too but your post about your grandmother was great. My mother and father lived through the great depression too. I grew up hearing stories about the depression from my parents, grandparents, aunts and uncles. Us kids would ask questions and we usually got some good replies that I never forgot. |
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Think positive. |
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TenBears
1000+ Penny Miser Member
USA
1021 Posts |
Posted - 07/27/2008 : 07:21:44
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quote:
Originally posted by fhbob
I dont expect the SHTF scenario to happen, . . .
There are as many definitions for SHTF as there are people who think about it. The folks in Katrina and Rita certainly thought TSHTF. The man who loses his job thinks the S just HTF. And, all those folks on the wrong end of the current mortgage crises (those being foreclosed upon) think TSHTF. TSHTF doesn't have to be Mad Max or even another Great Depression. Nevertheless, it behooves us all to stay out of debt as much as we can and to save.
One financial guru I read advises having at least $1,000 in emergency cash. With the foregoing in mind, why not have some of your emergency cash in nickels? Coin certainly outperformed the market over the last year. |
"Rich," the Old Man said dreamily, "is not baying after what you can't have. Rich is having the time to do what you want to do. Rich is a little whiskey to drink and some food to eat and a roof over your head and a fish pole and a boat and a gun and a dollar for a box of shells. Rich is not owing any money to anybody, and not spending what you haven't got." Robert Ruark
there are too wild Indians...
there are too wild Indians...
there are too wild Indians...-----still taunted
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daviscfad
1000+ Penny Miser Member
USA
1664 Posts |
Posted - 07/27/2008 : 23:25:35
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quote:
Unlike the market or real estate, nickels will never drop in value below what you paid for them (always spendable as a nickel) ignoring inflation. However the nickels might double, triple or more in value (silver coins are now 13X face) and my bank account will never do that (or keep up with inflation).
Thats how i feel. If in 15 years it dont go up you still have 5 cents. I am sure people thought hoarding silver coins was ridiculous But who is laughing now! At least we have this forum that we can be informed of such things. I hoarded Copper pennies before i found this forum. Never thought to hoard nickels, But now i have moved up 4 cents in the world b/c it is easier for me. |
Inquiring minds want to know |
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Ponce
Penny Hoarding Member
Cuba
630 Posts |
Posted - 07/28/2008 : 11:09:16
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| You must remember that in 1918-1923 this old lady in Germany had a bathtube full of coins and she did just fine because there were 127 printing houses dishing out the new money but none were making coins so that the same reatained it's original value. |
"If you don't hold it, you don't own it"...Ponce |
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So whats the chance of nickelhoarding panning out?
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