Peter Schiff argues that the 7.76-cent metal value of U.S. nickels offers a better store of value than Treasuries, despite federal laws that currently criminalize the melting of coins for profit.
Peter Schiff highlights the copper content in nickels and pre-1982 pennies as having melt value above face, suggesting upside if metal prices rise or coin production stops.
Schiff's argument centers on the 25% nickel content in U.S. nickels being worth more than face value, making physical nickel attractive relative to Treasuries.
Zinc is mentioned in the context of newer pennies having a lower melt value, providing no strong bullish catalyst from the article.
Economist Peter Schiff is advocating for the accumulation of U.S. nickels, citing that their intrinsic copper and nickel content is worth 55% more than their face value. While Schiff positions these coins as a superior alternative to Treasuries, legal prohibitions against melting currency present a significant barrier to realizing these gains.
No, federal law prohibits the melting of U.S. nickels and pennies, with violations potentially resulting in fines of up to $10,000 and five years in prison.