Melt value of us coins
The Federal Reserve delivered them to his warehouse in Dallas at zero cost. In the first chapter of his book Boomerang, Michael Lewis tells how Kyle Bass bought $1 million of nickels when the melt value of them was 8¢ each. It would be a cheaper way to get silver or nickel or copper or zinc or whatever the metal was.Īnyone who buys coins when the metal in them-called melt value-exceeds the face value, makes an instant profit. and around the world would stop buying them in the normal metal market and would just buy the coins at the bank. Why? Because if they did not, users of those metals in the U.S. First they make it illegal to met or export the coins. When that happens and stays that way, the government usually does two things. Illegal to melt or export and no more minting That happens when the price of the metal in the coin rises so high that it costs the government MORE to buy the metal and do the labor and shipping of the coins than the face value of the coin. And they really hate it during the times when commodity prices rise to the point where they LOSE money making coins. They do not like coins because coins cost more to make than paper or plastic sheets. In other words, governments want the melt-value-to-face-value ratio to be as close to zero as possible. If it was up to government, all currency would be paper (or plastic sheets as some countries now use). Then, after World War I, governments tried to get rid of specie, which I will define as high melt-value-to-face-value ratio coins.
They were worth their face value because they contained that value of metal in the coin. That ratio was the whole idea of the coins. It used to be that all coins worldwide had a high melt-value-to-face-value ratio. They used to all be high melt value to face value ratio coins because acquiring high melt-value-to-face-value ratio coins in another country and bringing them here would be expensive and is probably illegal in the country that mints them. Turned out there were two, and they were right here in the U.S.: the penny and the nickel. It occurred to me that it would be really neat if somewhere in the world there was a circulating coin with a high melt-value-to-face-value ratio.
#Melt value of us coins how to
When I was researching my book How to Protect Your Life Savings From Hyperinflation & Depression, the light bulb went on in my head. coins with a high “face value to melt value” ratio.