Nickels: The perfect inflation hedge

We came across this graphic at which underscores the current US Dollar debasement perhaps better than any words can.  It shows the value of the oft despised penny and nickel in terms of their raw metal weights.  This is the reason that we have speculated that pennies and nickels will soon be a thing of the past as the US Dollar undergoes a 10:1 reverse split.

This is also a reason why Unlce Sam and your bank hate cash and love cards.  You still have to do some work to create coins and bills.


Nickels: the perfect inflation hedge?


In other words, you can currently buy nickels at roughly a 10% discount to thier current metal value.  Even if the metal values plunge, you come out even in dollar terms, guaranteed as long as the Federal Reserve runs the currency.

If the FED continues to destroy the currency, as has been their MO since inception, you have unlimited upside.  The fundamentals of the Nickel (the metal, not the coin) are nothing to sneeze at, either.  We don’t have statistics but we have a feeling that it is in relatively short supply.

Nickels and perhaps pennies may be the perfect inflation hedge.

If you can get your hands on them.