Lew, you’re too humble to crow in your post about the Government Ditching Some Coins, so let me remind readers that LRC’s word to the wise since at least August of 2009 has been to Stock Up on Nickels among other items.
I think I’ll go to the bank today and get some more nickels. Note that this is nearly free money — you have a few opportunity costs mentioned below. I give the bank face value fiat $100, they give me face value $100 in $.05 nickels worth $.162. The math on $100 is [$100 x 20N/$ x ($.162 – $.05) = $224].
That’s a 224% return on your time, ability to lug around and store nickels, and willingness to tie up some money while you wait for the market in pre-2013 Nickels to emerge. Worst case scenario, you can still spend nickels at face value. Seems too good to be true until you look at the prices on pre-1964 coins. History repeats…
Update:
Jeff M. corrects my oversight – this is a fake news story, although the wide distribution certainly says something about the state of our economy. I am revising my numbers downward to match the March 2012 Wall Street Journal article which cites the cost of nickels at $.112 – new math puts your profit on today’s nickels at $124 for a mere 124% gain when the inevitable nickel revaluation happens. Thanks Jeff. In other news, Kim Jong-un has been voted Sexiest Man Alive.
