FinancialAdvisor's College Class (FACC)

[FinancialAdvisor]

***THE MODERN-DAY PENNY, NICKEL, DIME, & QUARTER***

The modern day penny is made of 99.2% zinc and .08% copper, weighs 2.5 grams.

The modern day nickel is made of 75% copper and 25% nickel, weighs 5 grams.

The modern day dime is made of 75% copper and 25% nickel, weighs 2.27 grams.

The modern day quarter is made of 75% copper and 25% nickel, weights 5.7 grams.

Now some simple math here tells us that clearly the dime is the biggest rip-off for it is composed of the same materials as the nickel, yet it doesn't even weigh half as much!!!

With that said, let's dive into the true value of the 5¢ coin in the United States of America known as the nickel!...

Now the next step in determining the true value of the 5¢ piece is by converting those nickels into 1 pound, I know that one pound equals 453.59 grams... so for simplistic purposes, we'll round that up to 455 grams.

We'll take that 455 number and divide it into 5 given the weight of each nickel is 5 grams. Thus, we are in turn given 91 nickels. 91 nickels X 5¢ = $4.55.

Ok, given that we understand the true value of the nickel is what it's composed of, and we know that the nickel is composed of 75% copper and 25% nickel, we will thus take 75% the current cost of copper and 25% the current cost of nickel. Curently copper is going for $2.06 a pound & nickel is going for $6.11 a pound.



$2.06 x .75 = $1.55
(+)
$6.11 x .25 = $1.53

Thus the TRUE value of the metals composed to make every pound of nickel which is face valued at $4.55 is truly worth $3.08. That's not too big of a difference, if the compound mixture that goes into making nickels is able to gain just 47.73% in the coming years than the face value of that nickel will be surpassed by the actual contents that make it up. Given the current "bull-market" in commodities, that 47.73% gain may not be too far off.

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Next let's examine the penny. 99.2% zinc and .8% copper, weighing in at 2.5 grams. Given the weight of the penny is half that of the nickel, it'll take twice as many pennies to equal a pound of metal, with that said, we need 182 pennies to create a pound. So the value of a pound of pennies is $1.82.

Now let's utilize the same math. Zinc currently runs at about .81 a pound while the barely used copper in the penny runs at $2.06 a pound.



$.81 x .992 = $.80
$2.06 x .8 = $.02

Thus, a pound of pennies with a face value of $1.82 is actually worth $.82.

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Thus, by converting all of your United States' currency to circulating nickels, you get the best bang for your buck. In fact, the reason I have created this research project is because I wanted to find the next potential pre-1964 quarter & dime which were composed of 90% $ilver/10% copper, and that idea was thrown out in 1965 as the current structure of 75% copper/25% nickel took over.

So, my conclusion of this mini-research project is that the "nickel" currently valued at 5¢ face value and composed of 75% copper & 25% nickel will be the next United States' coin to get either scrapped or remade into a different mixture.

41 years later, You can't find a pre-1964 quarter or dime in circulation right now due to the fact they were all hoarded or taken off the market for their value in $ilver.

With that said, my hypothesis is that 41 years from now, the current "nickel" as we know it will be long out of circulation and hoarded due to the "true-value" of copper and nickel surpassing its' face value.

Of course, by than the entire U.S. currency as we know it now may be transformed into hopefully something that is backed by precious metals and not thin air...