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drewfu | 10-31-2007 11:05 AM
If the US changes coin composition... If the US changes coin composition it will have profound impact on the price of the base metals that they switch from. Say that they change nickels -- the price of copper and nickel should drop drastically. The mint has huge demands for those metals for coins. How many years would it take for nickels to get back to face value if the mint stopped using the same composition?

Buchan | 10-31-2007 12:13 PM
Re: If the US changes coin composition... An interesting question... However, what happened when silver was removed from US coinage? Did the price of silver drop because demand for silver from the government ended? If it did, it seems to have recovered nicely since then. IMO, copper prices may drop momentarily, but demand from other sources (e.g. China) would pick up the slack and put upward pressure on prices again. Also, so long as inflation continues here, base metal prices in US $ will continue to rise as well in the long term.

drewfu | 10-31-2007 02:36 PM
Re: If the US changes coin composition... Quote:
Originally Posted by Buchan (Post 804686) An interesting question... However, what happened when silver was removed from US coinage? Did the price of silver drop because demand for silver from the government ended? If it did, it seems to have recovered nicely since then. IMO, copper prices may drop momentarily, but demand from other sources (e.g. China) would pick up the slack and put upward pressure on prices again. Also, so long as inflation continues here, base metal prices in US $ will continue to rise as well in the long term.
I think that you are right, its just a bump in the road for the long term investor. Still, the mint must take tons and tones of copper each year from the market for their coins. Eliminating all or part of the that consumption would have a profound impact on the price.

HistoryStudent | 10-31-2007 02:56 PM
Re: If the US changes coin composition... Most Americans are sadly CONCENTRIC and forget that soon the world is GOING to make us ONLY 20% of the so-called BIG PICTURE. Another 50% drop in the US dollar price is GONNA do it! Right now in China the dirty street currency swappers charge you an EXTRA 7% discount to change your US dollars into another currency - IMAGINE what the banks are doing! That's over and beyond the normal charge - they are scared the US is DUMPING DOLLARS - period! I love America our leaders and bankers have SADLY sold us down the THIRD WORLD GUTTER RIVER.

Sparky | 10-31-2007 04:53 PM
Re: If the US changes coin composition... Could we inject some facts into this discussion? What fraction of world annual copper and nickel usage is attributable to U.S. coin mintage?

Got Goldies | 10-31-2007 04:56 PM
Re: If the US changes coin composition... Quote:
Originally Posted by Sparky (Post 805206) Could we inject some facts into this discussion? What fraction of world annual copper and nickel usage is attributable to U.S. coin mintage?
I dont save in pennies so I would not know. Stick with $1 silver,

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