The nickel produced by the U.S. Mint with a face value of $.05 now has a metal value above $.075 following today's record nickel close on the NYMEX today. This is the first time the coin's metal value has reached this level, furthering speculation that the Mint may change its composition soon (or bewilderment as to why they're not considering it).

A coin's metal value that is only worth 2.5 cents more than its denomination may not seem significant, but it doesn't take many nickels to see the profit potential.

A standard $2.00 roll of nickels from the bank now has a metal value of $3.00. $10.00 in nickels is worth $15.00. $100,000 is worth $150,000 (and so on; input your own value at coinflation's coin metal value calculator).

Late last year, the U.S. Mint decided to create new rules prohibiting coin melting and mass exportation. This has dissuaded many from hoarding these coins or others seeking a quick payday from a metal recycler or smelter. However, several future scenarios could be profitable for the patient.

There's been increasing discussion of a North American-based currency similar to the Euro (nicknamed the 'Amero') where the U.S., Canada, and Mexico would merge monetary systems. Obviously, U.S. coins would become demonetized and ready for the melting pot at that point.

Also, if global nickel metal supplies continue to dwindle and supply can't meet demand, the U.S. Mint may not have a choice but to change the coin composition. A steel-based coin, similar to Canada's current circulating coinage would be the likely alternative. This event may allow the Mint to change the melting rules and allow new nickel (and copper) supply to enter the market.

The bottom line is that this is only the beginning. We have two powerful forces that are pushing metal prices higher and higher. Increased global demand (actually exponential demand) of a finite supply of natural resources and a U.S. currency that is steadily losing respect/value in the world.

The nickel's current metal value is simply an example of events to come.

To find out the intrinsic value of U.S. Coins (including pre-1965 silver), visit https://www.coinflation.com.

Alec Nevalainen
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