@riggerjack
Thats exactly right, the dual properties of the US nickel as hard asset and fiat money. I like the tip about the cubic zirconium.
When I say SHTF, I mean this is relative terms. In failed states I doubt I can get good value for gold OR nickels. When zombies start roaming the streets, only food and ammunition will really be of worth. But with each stock market crash and the dollar devaluation that follows, I still like gold. In defense of jennypenny, gold is especially sacred in India, but save the American Indian (who isn’t a global player anymore) gold is revered in all cultures. It’s dense and I can sell it to rich people. The amount of prep required for a zombie scenario is the all-consuming thing that would define me, not accumulating US nickels.
I am concerned about tungsten and other gold fakes.
@Clarice
Ok, I might have to seriously think about having SOME alcohol, but if the US becomes a failed state, all bets are off and how can we really plan for that anyway?
Some wine and scotch should actually become more valuable with age! The most perfect excuse for a wine cellar I’ve heard from an ERE perspective.
@unemployable
Nice collection.
Alright, Rowland and Spitznagel arrived in the mail, time to further edumacate myself.
Nickels?
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Mister Imperceptible
- Posts: 1669
- Joined: Fri Nov 10, 2017 4:18 pm
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Mister Imperceptible
- Posts: 1669
- Joined: Fri Nov 10, 2017 4:18 pm
Re: Nickels?
I redpilled someone regarding the goings on of human affairs.
He replied the following:
I asked Cumbies about the coin shortage.
They say Wells Fargo supplies Brinks who supplies them.
They can't provide coins because the machine that cleans the coins is broken and has no parts.
That's what they are told.
So banks are hiding behind Covid to hold coins out of system.
And like we said its also cost prohibitive to make them.
Covid is a cover for so many things :/
He replied the following:
I asked Cumbies about the coin shortage.
They say Wells Fargo supplies Brinks who supplies them.
They can't provide coins because the machine that cleans the coins is broken and has no parts.
That's what they are told.
So banks are hiding behind Covid to hold coins out of system.
And like we said its also cost prohibitive to make them.
Covid is a cover for so many things :/
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Mister Imperceptible
- Posts: 1669
- Joined: Fri Nov 10, 2017 4:18 pm
Re: Nickels?
LME is busting trades on Nickel. In a SHTF era, lugging around a heavy bag of anything is going to be like dropping honey on an ant pile, you won't get a few blocks.
Once one takes physical delivery of any commodity (even professional traders/hedge funds), selling the commodity will require an assay, which costs are variable. In a time of crises, the cost to assay commodities will spike or be infinite (imagine traveling to an assay in a Mad Max world where criminals would just sit in front of the assays office or follow any assay to your house) thus at best making any metal a good paperweight at worst painting a target on your back.
Silver is only down 80% over the last 40 years and up from $20/ounce in 1918 at the end of WWI to give a good idea of long term returns of semi-precious metals can be.
Once one takes physical delivery of any commodity (even professional traders/hedge funds), selling the commodity will require an assay, which costs are variable. In a time of crises, the cost to assay commodities will spike or be infinite (imagine traveling to an assay in a Mad Max world where criminals would just sit in front of the assays office or follow any assay to your house) thus at best making any metal a good paperweight at worst painting a target on your back.
Silver is only down 80% over the last 40 years and up from $20/ounce in 1918 at the end of WWI to give a good idea of long term returns of semi-precious metals can be.
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jacob
- Site Admin
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- Location: USA, Zone 5b, Koppen Dfa, Elev. 620ft, Walkscore 77
- Contact:
Re: Nickels?
There was a short squeeze on nickel. A major Chinese bank and the London Merc is involved. Margin calls are being renegotiated (delayed) and trading has been halted. The current futures price does not reflect reality per se.
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Mister Imperceptible
- Posts: 1669
- Joined: Fri Nov 10, 2017 4:18 pm
Re: Nickels?
There are better ways to make money than the 4 figures I have made on the nickel trade but nonlinear visuals turn me on and it is interesting with regards to time preference/time value of money. You could also say that such charts are a barometer/harbinger.
If you visit the linked site you can see a list of coins with melt values far above their face value and they trade with reasonable spreads without assay.
If you visit the linked site you can see a list of coins with melt values far above their face value and they trade with reasonable spreads without assay.
Re: Nickels?
Those are prices today. When the SHTF, all prices will spike or services eliminated due to risk of theft The best way to survive some kind of dystopian world is to avoid it at all costs.
The other issue with using some metal for transactions, is that everyone along the supply chain will also have to adopt the same policies, farmer pays fertilizer in metal, farmer pays labor in metal, transporter is paid in metal, retailer is paid in metal, and on and on. This supply chain will collapse and there will be no goods to buy with your gold/silver/nickel/uranium. I have a friend who once believed the end of the world was near and put a lot of money in gold all over the world. I humbly asked him to explain to me how a private jet would get fueled so he could collect his bounty in a SHTF world, and still waiting for the explanation.
The LME case is interesting as the short seller has the nickel and will deliver the physical nickel, but margin call was issued due to margin requirements. This was a producer hedging the sales price. All this kind of "short squeezing" will raise the cost of producing all commodities and cause inflation to rip higher (maybe exponentially). Producers use futures markets as an alternative to borrowing to fund operations, if this gets more expensive, the end user will pay the price.
The other issue with using some metal for transactions, is that everyone along the supply chain will also have to adopt the same policies, farmer pays fertilizer in metal, farmer pays labor in metal, transporter is paid in metal, retailer is paid in metal, and on and on. This supply chain will collapse and there will be no goods to buy with your gold/silver/nickel/uranium. I have a friend who once believed the end of the world was near and put a lot of money in gold all over the world. I humbly asked him to explain to me how a private jet would get fueled so he could collect his bounty in a SHTF world, and still waiting for the explanation.
The LME case is interesting as the short seller has the nickel and will deliver the physical nickel, but margin call was issued due to margin requirements. This was a producer hedging the sales price. All this kind of "short squeezing" will raise the cost of producing all commodities and cause inflation to rip higher (maybe exponentially). Producers use futures markets as an alternative to borrowing to fund operations, if this gets more expensive, the end user will pay the price.