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The E-Sylum:  Volume 8, Number 32, July 24, 2005, Article 29

COST OF NICKEL RISING

Dick Johnson writes: "It happened slowly. The cost of copper
is rising. So much in fact the cost of the copper in a nickel is
pushing the metal value over the face value.

Perhaps we have been so concerned with the metal cost of
gold and silver that we have been overlooking the price of
copper. Since a nickel is 75 percent copper we may have
deja vu from the days when the 1942-45 wartime silver
nickels' value rose. What are they now Ė 51 cents metal
value?

This is a guaranteed investment scheme that has been noticed
by Dr. Steve Sjuggerud who publishes a newsletter for
would-be investors. He is in favor of having some metal assets.
(But does he want that big a pile of nickels?)

Sjuggerud writes: "Hereís a guaranteed investment scheme...

You and I buy up all the nickels we can get our hands on.
Since the underlying metal in a nickel today is worth about 6
cents, we lock ourselves in at a guaranteed 20% profit by
selling short the coinís metal in the financial markets today.
Then, to guarantee this investment scheme, all we need to
do is melt down the nickels...

Okay, so itís not so easy. And thereís probably some sort
of law against this. But the reality is, at current metals prices,
it costs the U.S. government about six cents to produce a
nickel...

Leave it to the U.S. government to LOSE money by
PRINTING money...

In fiscal year 2003 (ending in September), it cost the U.S.
government 3.78 cents to produce a nickel. In fiscal year
2004, it cost the government 4.56 cents to produce a nickel.
And so far this fiscal year (from October 1, 2004 to present),
the price of copper (which is the most prevalent metal in a
nickel) is well above its fiscal year 2004 levels, meaning
that itíll likely cost the government about 6 cents to produce
a nickel."

To read the full article, see: Full Story

  Wayne Homren, Editor

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