Looking for a commodities play that will let you hedge against inflation? The blog UnitedWeBland says you should hoard your nickels.
US five cent coins contain over 7 cents worth of raw material as of this afternoon, mostly copper and of course, nickel. If there is inflation, the prices of metal will increase, and the coin will have 8, 9, 10 cents worth of metal. Pre-1965 dimes contain over $2.42 of metal today, while pre-1965 quarters have over $6 worth of metal.
If there is deflation, the coins are still currency at face value. They will always be nickels. There is also no transaction cost for "buying" these coins. Just save them as you get them from change, or pick up $2 rolls at local banks.
If you need to "cash out", return the rolls to the bank, or use them as bullion if newer "cheap nickels" are circulated in the future.
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