|
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
|
