Nickel

C

Caneorange

Member
While I know Nickel is not a precious metal I thought this would be the best place to pose the question.

Currently a US nickel costs well 5 cents and it currently has roughly 3 cents worth of nickel in it. Coins get debased when it becomes more expensive to make said coin than to sell it. I am thinking about stacking nickels because the risk is essentially 0 (I understand inflation and lost opportunity) and possibly some upside. So the questions are as follows.

1. Do you think nickel will end up being worth it to stack current nickels?

2. Do you think nickel a non-precious metal can climb at a fast enough rate to be worth "investing" in? (CJ can just respond sideways here:) )

3. Do you stack copper pennies?

4. Do you know who Ray Dalio is?

Thanks for playing!
 
1. Do you think nickel will end up being worth it to stack current nickels? No not worth it, do you know how much a ton of nickel metal is, how many coins would you need, and where will you store it.

2. Do you think nickel a non-precious metal can climb at a fast enough rate to be worth "investing" in? (CJ can just respond sideways here:) ) yes

3. Do you stack copper pennies? No

4. Do you know who Ray Dalio is? Nah, could not be bothered googling
 
Just buy shares in a nickel or copper miner if you want exposure to them and you believe that they will increase in value. Who really needs bags or copper coins taking up space
 
Also it has to basically triple to make any money on it. As the above poster says much easier to buy shares in a nickel miner.

if you had a 1.3 tons of Nickels it works out to be about a ton of nickel metal @. $10,000 a ton.

Until nickel metal basically doubles you are out of money but more importantly no one is buying from you at spot to refine.,,.As you would have to sell to dodgy brothers because it is illegal in US to melt those coins
 
^^ Buy POS for sure or Nickel ETF. PAN is almost a two bagger, was 10 cents about three months ago and now brushing up against 30 cents.
 
Ipv6Ready said:
Also it has to basically triple to make any money on it. As the above poster says much easier to buy shares in a nickel miner.

if you had a 1.3 tons of Nickels it works out to be about a ton of nickel metal @. $10,000 a ton.

Until nickel metal basically doubles you are out of money but more importantly no one is buying from you at spot to refine.,,.As you would have to sell to dodgy brothers because it is illegal in US to melt those coins
Click to expand...

Can you elaborate on how this is different than stacking silver? In order to have any real gain stacking physical silver after premiums and shipping you have to be dealing in tons.


Caput Lupinum said:
Just buy shares in a nickel or copper miner if you want exposure to them and you believe that they will increase in value. Who really needs bags or copper coins taking up space
Click to expand...

Basically same question. How is this different than the advice for silver? Also, do companies still fail if a commodity is rising in price?


To answer the Ray Dalio question aspect he is an equity fund manager that is a billionaire. I read a book about him recently and he was having his children stack nickels to teach them about risk:reward.

I appreciate all of the responses.
 
Caneorange said:
Caput Lupinum said:
Just buy shares in a nickel or copper miner if you want exposure to them and you believe that they will increase in value. Who really needs bags or copper coins taking up space
Click to expand...

Basically same question. How is this different than the advice for silver? Also, do companies still fail if a commodity is rising in price?
Click to expand...


It comes down to risk tolerance. So long as you do the research on a company, it has good management and a solid balance sheet, it is difficult for a mining company to simply fail when the commodity it mines in rising in price. I stack physical silver as well as buying mining shares to spread the risk. I have up to 400% of unrealised gains on junior gold/silver mining stocks despite the spot price of gold only being up about 25%. You won't get that kind of return by holding bags of copper and nickel coins but you do have the security of knowing that there's no counter-party risk and any potential burglar could not be bothered carrying heavy bags of coins. To me, the effort that goes into storing bags of nickel and copper coins for the potential return on a higher nickel and copper price is not worth it compared to a small investment in a producing copper and nickel mining company.
 
https://en.wikipedia.org/wiki/Poseidon_bubble

The fascinating joys of a share "bubble".

OC

(PS, Robert Champion de Crespiney was a customer of ours in the Commercial Bank of Australia in the 1960s. He is the uncle of the pilot of the A380 that nearly went down near Singapore a few years back. The family can be traced all the way back to the Norman invasion of 1066 when the 'original' was a knight of William of Normandy)
 
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