For anyone who wants to make an immediate 80% return on your investment,
go to your local bank with your worthless Federal Reserve Notes and tell them
that you'd like to exchange them for rolls of nickels. On its face this might
seem ridiculous and absurd and the bank teller might even look at you like
you have three heads, but by exchanging your Federal Reserve Notes for
nickels you will have made a risk free investment with an immediate positive
return of 80%.
I've briefly mentioned this in previous articles, but what we are now
seeing with pennies and nickels is similar to what took place in the late
1960's. In the late 1960's the melt value of circulating silver coins began
to exceed the face value of the coins themselves. As people began to realize
that the coin melt value was worth more than the face value, people began to
keep these coins which ended their circulation. I believe that the same thing
will happen to pennies and nickels. Currently the melt value of copper
pennies is over twice the face value and the melt value of zinc pennies is
almost equal to their face value. Each nickel now has a melt value of
approximately 9 cents. This means that if you go into a bank and buy $1,000
worth of nickels those nickels are actually worth $1,800.
The bottom line is that the coinage that is produced by the U.S. Mint is
the only honest money left in circulation. The coins themselves store value
because of their metal content where as Federal Reserve Notes store no value.
Federal Reserve Notes are a dishonest fraud because nothing can be redeemed
for them at the Federal Reserve banks. As the Federal Reserve continues to
create additional money, coins like pennies and nickels will emerge as
another form of protection against inflation because regardless of how much
money is created the coins will always have some intrinsic value.
The U.S. Mint continues to baffle me though. This is an organization that
has attempted to smear the people at NORFED who produce the Liberty Dollar
and have issued an edict stating that melting down pennies and nickels or
taking pennies and nickels out of the country is some sort of crime. The
actions of the U.S. Mint as I've mentioned before has been incredibly
ridiculous if not idiotic.
The fact that the U.S. Mint has stated that melting down pennies and
nickels amounts to some sort of crime is insane on its face. The U.S. Mint
should talk to the Federal Reserve and U.S. Treasury and tell them that we
need to start producing honest money again so the Mint won't lose money by
creating pennies and nickels. It is the dishonest money coming from the
Federal Reserve and the inflation created from it that is the real issue
here. This means that the U.S. Treasury should either start printing interest
free legal tender or better yet certificates that are backed by gold and
silver bullion. Another words, abolish the Federal Reserve. They are the real
cause of why the U.S. Mint is now losing money with each nickel they make. If
the Federal Reserve is allowed to continue to operate in this fashion, the
U.S. Mint will continue to lose even more money on coins and will probably be
forced to change the metal content of pennies and nickels or find a way to
discontinue them entirely.
On the Liberty Dollar situation, if the U.S. Mint has such a problem with private
currencies all they need to do is come up with a legitimate product to
compete with them. If the U.S. Mint created a $1,000 legal tender gold piece
and a $20 legal tender silver piece, they'd easily be able to compete with
NORFED. Why does the U.S. Mint create legal tender $1 one ounce silver coins
and legal tender $50 one ounce gold silver coins when they could increase the
face value to something that fairly reflects the true price of gold and
silver? If the Federal Reserve can put a $1 value and a $100 value on the
same worthless piece of paper, why can't the U.S. Mint create $1,000 legal
tender gold pieces and $20 legal tender silver pieces?
The U.S. Mint in all likelihood probably does not want to admit that the
Federal Reserve has caused inflation to spiral out of control so they put a
low face value on their gold and silver coins. Not only that, but by putting
a low face value on these gold and silver coins it allows them to more easily
confiscate these gold and silver coins in the case of a financial collapse.
The people running our financial system are very devious and diabolical
individuals, so I would not put any of this past them.
With that said, nickels are the most honest form of money currently
available from the Federal Reserve or the U.S. Mint. I firmly believe that
sometime in the near future, we will no longer see these nickels circulate
freely. People will begin hoarding them for the same reason that silver coins
were hoarded in the late 1960's. Nickels not only store value but their melt
value provides an immediate return on your investment. How many investment
vehicles can provide an immediate 80% return on investment? There aren't very
many, and quite frankly the only one that I know that is a sure bet are
nickels from the U.S. Mint.
26 May 2007
Lee Rogers
Funny Money Report
www.funnymoneyreport.com
Please sign up for my free investment newsletter by visiting my web site
at www.funnymoneyreport.com
|