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Penny and Nickel Debasement Bill Introduced in U.S. Congress

Survival Blog – by James Wesley, Rawles

Reader Joe K. sent this news link: Bill Seeks Steel Cents, Nickels, Dimes, and Quarters. Note that the bill’s main sponsors are from Ohio, which is a steel manufacturing state. But this legislation is more than just grandstanding.

Unlike similar legislation in previous sessions of congress, this new bill will probably gain traction in the current congress, since the government has now been losing money with the seigniorage costs of pennies and nickels for many years. Well, I’ve been warning you since 2009, folks.   

While this bill is still in committee, I suspect that a coinage composition change will take place before the end of 2013. The ravages of inflation made the change inevitable. The Coinflation web site presently lists the scrap value of the base metal content of the current U.S. zinc penny at $0.021192 (211.92% of face value) and the cupronickel five cent piece at $0.045671 (91.34% of face value), and their actual minting and distribution costs are actually much higher. According to Coin Update, it cost the US Mint $0.1009 to produce and distribute each nickel, as of fiscal year 2013. They can’t go on spending 10 cents producing each five cent coin much longer.

You gave been warned. I strongly urge you to go to your local bank or credit union and ask them to order you some $200 U.S. Mint Boxes of nickels. In just a few years, after the debasement is completed and the rational self interest of Gresham’s Law psychology purges all of the real cupronickel nickels from circulation, rolls ofpre-2013 nickels will sell at a substantial premium. Because nickel is a base metal, this premium will never be as high as that for silver coins, but at least you’ll know that you possess some genuine money that will hold its value, even if the Quantitative Easing monetization process continues indefinitely. (Quantitative Easing is debasement of the dollar, writ large.)

In addition to hedging against gradual inflation, holding nickels will also provide you insurance against the less likely sudden revaluation of the Dollar. As I’ve explained previously, if a zero is ever lopped off the Dollar, new paper currency will be issued, but the old coinage will probably still circulate. (Since it would be too expensive to replace.) This will make anyone holding coins the beneficiaries of an overnight 10X gain.

This may be your last chance to stock up on nickels at face value, and without any sorting, folks! If you don’t already have four or five .30 caliber ammo cans full of rolls of nickels, then you are behind the power curve. Don’t dawdle any longer. – J.W.R.

http://www.survivalblog.com/2013/05/penny-and-nickel-debasement-bill-introduced-in-us-congress.html

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5 Responses to Penny and Nickel Debasement Bill Introduced in U.S. Congress

  1. Ponce says:

    You guys are slow, even the loose change that I have been saving for the past 37 years will have more value than anything that the government can come up with………by the way, as of last year I have about $12,000 in nickels alone, I did get $5,000 all at once………the bank manager told me “Don’t you dare do it again” hahahahahahahahah.

  2. PseudoNhymm says:

    Nobody is going to want to trade in modern nickels or dimes for intrinsic metal value- it’s far too cumbersome. I’d rather trade a gallon of gas for a single silver quarter than 105 (junk) copper nickels. I’m gonna walk right by the guy with copper shaking my head and laughing

  3. Jolly Roger says:

    I have a couple steel pennies that were issued during WW2 — I think they needed the copper for ammo.

  4. mat says:

    Did everyone buy their silver today? May 1st is silver stacker day!
    check out the video from sound money campaign

  5. woody188 says:

    This is only sound advice versus holding paper money. It will still take 20 cupronickels to buy a 15 stick pack of gum, but it will take $10.00 paper fiat (Federal Reserve Notes) to buy that same pack of gum versus $1.00 today. Remember when one could get a 5 stick pack of gum for a nickel?

    Might as well store your wealth in gum!

    Seriously though, some commodities like liquor is a good investment too!

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