What "exactly" is money?

[FarmerJamie]

I heard a news story on the radio this week that it costs the federal govt something like 1.5 cents to mint a penny and 8 cents to mint a nickel mostly due to the material costs?

 

[Wifezilla]

www.coinflation.com

Part of it is cost to make, part of it is metal costs. The metal in a nickel is worth more than a nickel because it is 75% copper.

 

[lighthawk]

Since I can't buy gold, I do have copper (pre 1982 pennies and nickels of any year). Occasionally I find some silver and that goes in the stash too. The "fake" coins (newer stuff with no precious metal content) and small bills I accrue get changed in to rolls of nickels as well.

They are still worth their face value regardless, so there is no loss to having them. Plus I can always use them to line my bunker or put some rolls in a sock and beat someone with it if I have to

I never thought about that before... I need to double check my change jar! Where do you find the silver? Is that in a certain year of dimes?

All dimes, quarters, half dollars and dollars minted in1964 or before contain 90% silver.

 

[SKR8PN]

We sold off all the wife's scrap gold(mostly gold filled teeth and other odds and ends) when it hit 1200 an ounce. We still have the silver coins and some other gold left over from her goldsmithing days. I have thought about picking up some silver bars....

 

[Wifezilla]

Yup. Just went through all the change piles and pulled out some 1950's dimes, and occasionally get quarters in the till. We take all change customers give us and put it in an empty slot and sort it at the end of the day. All copper and silver gets pulled out.

I only started doing this a few months ago (something I feel stupid about!!!!), and I have noticed the percentage of "real" money go WAY DOWN quite recently.

I had to pick up some pennies for the till. There were about 5 coins per roll that were actual copper.

 

[lighthawk]

We sold off all the wife's scrap gold(mostly gold filled teeth and other odds and ends) when it hit 1200 an ounce. We still have the silver coins and some other gold left over from her goldsmithing days. I have thought about picking up some silver bars....

I started buying when silver was $4.67 an ounce and gold was $240.00 an ounce.
Now silver is $28.00 an ounce and gold $1380.00.
I fully expect that those prices will double again in 2011.
I would highly recomend silver coins, silver eagles or silver maple leafs over bars as recently some bullion has become suspect in regards to it's composition. Unscrupulos (sp) dealers have been known to plate other base metals and sell them as pure silver.

 

[framing fowl]

Next question. What do you do with the copper? Just put it in the safe until you need it like gold or silver? I'm assuming you're treating this as a long term investment. For example, you're not trying to save enough in a 6 month period and then convert it somehow into a house payment or other bill.

I guess what I'm trying to understand is how you would convert the copper into something usable. You're not supposed to melt it right? Defacing currency and all that. You wouldn't walk into the bank and say, I'd like a quarter for this penny due to the price of copper on today's market value.

 

[Wifezilla]

You can easily get "junk silver" as in circulated old US coins that don't have collector value but still have face and metal value. I am considering this. Anyone know a good place for junk silver?

 

[lighthawk]

Framing fowl as long as pennies are accepted as money it is illegal to melt them. Right now the local coin dealer will pay 2 cents for every "wheat back" penny. The reason they will only buy wheat backs is that they are surley copper without checking the dates. I expect down the road they will begin paying a similar premium for all copper pennies.
Wifezilla. I have bought "junk" silver coins from all of the coin dealers in the area at one time or another. They too are getting harder to find. Some jewelry stores deal in silver coins as well. Don't bother with cash for gold stores as they will only buy. They will not sell.

 

[Wifezilla]

I think an interesting experiment would be to sell my micro farm surplus and give regular prices as well as "real metal" prices.

Example: 1 dozen duck eggs. $4 OR 1 1965-1970 50 cent piece or 2 1964 or earlier dimes

Collective farm woman melon: $1 each OR 2 for a 1964 or older dime