Peter Schiff recommends investors buy nickels instead of US Treasury Bonds, claiming the copper and nickel metals in each coin are worth approximately 53-55% more than the 5-cent face value. Based on current copper prices of $6.69 per pound on COMEX and nickel at $16,776 per tonne, the melt value of each coin is about 7.6 cents. However, federal regulation 31 CFR Part 82 prohibits melting or exporting these coins, with violations punishable by up to $10,000 fines and five years imprisonment. The logistics present significant obstacles: $10,000 in nickels weighs a full metric ton, while 10-year Treasury bonds offered a 4.77% yield on September 3.
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