Will Hoarding the USA Nickel Coins Be Profitable?

Question

The nickel+copper value in the USA nickel coin is currently worth more than 6.2 cents (24% instant profit):

http://www.coinflation.com/

The prices of nickel & copper have nearly doubled in past 6 months, with the LME warehouse inventory of nickel dropping 50% in past 30 days (30 days more there may be no inventory):

http://www.kitcometals.com/charts/nickel_historical.html
http://www.kitcometals.com/charts/copper_historical.html

What is your answer to following detailed commentary?

http://jasonhommelforum.com/forums/showthread.php?t=211

Unlike sorting needed for pre-1982 copper pennies, to hoard nickel+copper and get instant 24% profit, we only need to walk into bank and pay face value for rolls of USA nickel coins.

Please review my sources, wherein I explain that illegal melting will not be necessary to profit off the rise in the nickel + copper value. The point is that the coins can be traded as real money for their true value, just as old silver dime coins trade at their silver value today which about $1, not 10 cents. Do your homework before attempting to answer this question please.

Apparently trading for profit "monetized bullion" is not subject to sales tax, at least in some states:

http://apps.leg.wa.gov/WAC/default.aspx?cite=458-20-248

"...'monetized bullion' means coin...manufactured from...or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States..."

Answer 1

It's almost unbelieveable that we have any money that is actually worth anything.

Answer 2

On NYMEX, copper is traded in 25,000-pound increments; the copper must be high-grade (chemically pure) and be located in a warehouse in the United States licensed or designated by NYMEX.

On LME, nickel is traded in 6-ton increments; the nickel must be of 99.80% minimum purity and located in an LME-authorized warehouse, most of which are in Europe.

So to put your "arbitrage" in place, you need to separate nickel from copper and do it on an industrial scale and then transport both metals to authorized warehouses. This is going to cost you a pretty penny (pun fully intended).

Answer 3

Even if you were able to seperate the two profitably what you are suggesting is illegal, you are not supposed do deface US currency. Plus how are you going to get enough nickels local bank is not going to be able to supply you withmore than a couple of hundred dollars worth and in most cases if you are consuming large amounts of coin they are going to sevice charge you for each roll (approx $0.10)

Answer 4

No because old pennies are 95% copper and everyone as jar fulls but no one is melting them and becoming rich.

Answer 5

hmmmm. i instantly thought of the penny thing. sure did clean up a lot of old pennies selling them for scrap though. i'll have to think about this one.

edit>>> ok read the links. (wow). thx for info. SSSHHHHH !