PDA

View Full Version : $11/pound nickel bullion, good price?



97guns
07-09-2010, 09:40 PM
i have a chance to pick up 50 pounds of nickel bullion for $550, just looking for opinions on holding some nickel at this price.

MaxGravy
07-11-2010, 10:05 AM
i have a chance to pick up 50 pounds of nickel bullion for $550, just looking for opinions on holding some nickel at this price.

Not really familiar with nickel, but according metalprices.com, that seems somewhat high.

Metal Hoarder
07-11-2010, 11:54 AM
Coinflation says that the current market price of nickel is $8.78 / lb. You can buy US nickels for face value, which is only 2% over their intrinsic metal value (copper & nickel). Plus, you have almost no downside price risk, because they are always worth at least 5 cents each since they are legal tender.

So you can buy nickels at face value with a max of 2% downside risk, or you can pay a 25% premium for nickel bullion with unlimited downside risk. It's a no brainer IMHO.

Ag gnostic
07-12-2010, 09:05 AM
Coinflation says that the current market price of nickel is $8.78 / lb. You can buy US nickels for face value, which is only 2% over their intrinsic metal value (copper & nickel). Plus, you have almost no downside price risk, because they are always worth at least 5 cents each since they are legal tender.

So you can buy nickels at face value with a max of 2% downside risk, or you can pay a 25% premium for nickel bullion with unlimited downside risk. It's a no brainer IMHO.

No kidding, you can get $100 boxes of nickels from your bank for cheaper. You also get copper as well - 75% copper, I believe.
I think Canadian nickels might have been 100% nickel, but I don't know how you would get a hold of those.

oober
07-16-2010, 02:20 AM
I haven't checked in awhile, but I don't think that is too bad of price. There is a premium on the Canadian Nicks. I would try to get for 10c/ea ($500.) at the most though. That is if I was in the market. I already have my stash of 55-81 canadian nicks. :)

OldPocketChange
07-16-2010, 10:02 AM
Might want to consider how Chinese innovation in stainless steel might place pressure on nickel.

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/a-breakthrough-in-china-branother-blow-for-sudbury/article1601530/

Ag gnostic
07-16-2010, 10:54 AM
Might want to consider how Chinese innovation in stainless steel might place pressure on nickel.

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/a-breakthrough-in-china-branother-blow-for-sudbury/article1601530/

Thanks for that, OldPocketChange. I had never heard of nickel pig iron before.

Carpenter
07-21-2010, 07:53 PM
i have a chance to pick up 50 pounds of nickel bullion for $550, just looking for opinions on holding some nickel at this price.
Go buy some nickles.
A $100 brick of nickles from the bank weighs 22 lbs.
If the bottom falls out of nickle your nickles will still be worth $100

Makepeace
07-29-2010, 11:13 AM
I bought a box of nickels today. Those nickels are a no-lose investment. Pure nickel-bronze with no iron contamination. Worth every penny of $100 paper. I think I will buy another box tomorrow.

Copperhead
08-09-2010, 09:14 PM
i have a chance to pick up 50 pounds of nickel bullion for $550, just looking for opinions on holding some nickel at this price.

Consider who will you sell it to in the future? Scrap yards maybe? Not very liquid is it compared to silver or gold?

HighInBC
08-10-2010, 11:20 PM
If you are only paying face values then the bank will always take it back from you, depending on how much you have. I would not pay much more than spot unless I knew I could sell them back with a small spread.

Even then, that is a lot of bulk and weight for even a few thousand dollars.

MaxGravy
08-12-2010, 04:51 PM
I bought a box of nickels today. Those nickels are a no-lose investment. Pure nickel-bronze with no iron contamination. Worth every penny of $100 paper. I think I will buy another box tomorrow.

I bought "a few" boxes of nickels from the credit union recently. It was very easy. I had to order them, but it only took a few days. Seems to be a pretty safe investment since there's very little downside. I'm thinking of getting a few more boxes as well. With gold over 1200 it's easier for me to put the money into nickels. If gold corrects hard then I'll take the boxes back to the bank and use the frns to get some gold.

Maybe I'll get the grandkids to search for war nickels in the mean time! :)

CapitalHeight
08-27-2010, 01:04 AM
CH Nickel View
Trend:- Consolidate
Strategy:- Sell On High
Res1- 967 Res2- 985
Supp1- 935 Supp2- 911

vvolf
09-02-2010, 07:23 PM
a Canadian '55-'81 at current prices of nickel are .0975 worth of nickel (.999) '82-'99 are .0510. I wonder what the law here in Canada says about melting these down :)

Canada is looking at "steel" coins? and plastic bills. Could hurt the price of nickel some. http://www.digitaljournal.com/article/288564

CheeseBurgerPicnic
09-02-2010, 08:35 PM
a Canadian '55-'81 at current prices of nickel are .0975 worth of nickel (.999) '82-'99 are .0510. I wonder what the law here in Canada says about melting these down :)

Canada is looking at "steel" coins? and plastic bills. Could hurt the price of nickel some. http://www.digitaljournal.com/article/288564

i'm pretty sure your not allowed to melt coins. But if nickel goes wild those nickels will probably still be sold at metal value like silver dollars are, which i'm also under the impression are illegal to melt down

and canadian coins haven't been nickel since 99-00 so i doubt that has any effect on nickel prices

vvolf
09-18-2010, 07:46 PM
i'm pretty sure your not allowed to melt coins. But if nickel goes wild those nickels will probably still be sold at metal value like silver dollars are, which i'm also under the impression are illegal to melt down

and canadian coins haven't been nickel since 99-00 so i doubt that has any effect on nickel prices

I had a jeweler here tell me that it is not illegal to melt them, just can't repress and circulate.....but, why melt down when the form they are in are known to be .999?

CheeseBurgerPicnic
09-18-2010, 08:23 PM
I had a jeweler here tell me that it is not illegal to melt them, just can't repress and circulate.....but, why melt down when the form they are in are known to be .999?

Are you in the states? in canada i'm pretty sure its illegal . I agree though, why melt when they will trade like junk silver if nickel prices ever rise substancially.

Also to correct myself from my ealier post, canadian loonies and toonies are still made of mostly nickel though dont have much more metal value than a 99% nickel

Copperhead
09-19-2010, 04:12 PM
One reason to melt them is if you need nickel to make a product and want to get it at a discounted rate.

geo50
10-06-2010, 08:28 AM
a Canadian '55-'81 at current prices of nickel are .0975 worth of nickel (.999) '82-'99 are .0510. I wonder what the law here in Canada says about melting these down :)

Canada is looking at "steel" coins? and plastic bills. Could hurt the price of nickel some. http://www.digitaljournal.com/article/288564

All Canadian coins are plated steel now except the $1 and $2. Reports from Canadian dealers say the Royal Mint is making a big effort to remove all older nickel coins fropm circulation.

wacky_package
10-06-2010, 08:57 AM
Canadian nickels were pure 999 nickel until 1981.
From 1982 to 1999 they were cupro-nickle, same as the US nickels now.
From 2000 they have been steel.

The pure Canadian nickels (81 and earlier) were also exactly 1/100 of a pound, estentially little bullion pieces, perfect for stacking.

However, very few of these pure nickels remain in circulation. Up here in Canada, I come across maybe one every week or so in change. About 4 or 5 years ago, I was actively "sorting" boxes from the bank, and was finding about 15 to 20% of the pure ones. But even the Canadian mint was actively pulling them out of ciculation under a program called "alloy recovery" - they even pitched it as a public service since it was helping the mint's bottom line! Bastards. God forbid a nation's currency actually have some instrinic value.

Nickle at $11 is far from it's high from about 5 years ago of $25 a pound. I'm not even bothering searching for pure Canadian nickels anymore, but if you find some they are well worth at spot. Why, becuase probably, 90% of the minted amounts have now been melted down, these little suckers are destined to be numismatic rarities in the future.

If I was in the States, I'd be buying pallet loads of your modern cupro-nickel nickels, can't go wrong.