Zimbabwe coinage value
 

With talk of the USD becoming "worthless", (or at least depreciating significantly), there are GIM discussions of the value of coins, most notably nickels and pre-1982 pennies. Even dimes and quarters contain primarily copper, which has intrinsic industrial value compared to paper dollars. In an extreme sense, there has been discussion of bartering with these coins because at least they hold some actual metallic value. As a minimum, we talk about the relative value of nickels and copper pennies, because their melt value exceeds their face value.

Now, I am trying to think about this in terms of a real world example, and Zimbabwe comes to mind. With hyperinflation, the official exchange rate with USD is 30,000-1, though in practice it is multi-millions. Now the most recent Zimbabwe coins are made of steel, and their melt value is about 0.001 USD, or 1/10 of a U.S. penny. So, the face value of Zimbabwe penny is 1/100 ZDollar, but conservatively it's melt value is about $30 ZD. In the terminology that we use for silver, the ZPenny is worth about 3000x face value. (On the other hand, if the real exchange rate is 3 million to 1, the melt value would then be 300,000x face.) Wikipedia claims their face value is so worthless that they are used as casino tokens.

But here's my question (finally): Have Zimbabwe coins take on new "value" during this currency crisis, the way that we imagine US coins would in a SHTF scenario? Do they even continue to mint coins? Were there forward-looking Zimbabweans who hoarded coins prior to the currency collapse, the same way that we crazy GIMers hoard nickels? Has it paid off for them? I supposed even if you hoarded $1000 worth of coins, that still only converts to $3 million ZDollars, which doesn't buy jack. (But I suppose if we use the more realistic currency conversion, the melt value would then be worth $300 million ZDollars. NOW we're talking.)

Just curious if anyone has any insight here. Couldn't really find much on the Internet.

Re: Zimbabwe coinage value
 

I doubt anyone here has been into Zimbabwe lately...Realistically..the answer to your question is yes. If the metal is worth more than the coin - those coins dissapear and end up attaining the owner more $ via the metal price. I doubt they would be traded in coin form at their metal value however - until at least those coins were no longer in "circulation" much like the US in 65.

Re: Zimbabwe coinage value
 

Most of the coin machines are being dismantled, as the highest denomination of coins currently is $5, and is unusable.

The only reference I could find is here:

I have had the same question myself on hoarding base metals, and have yet to hear any modern day stories (or even backed up stories from Weimer Germany) about base metals coins buying more than paper equivalents. Silver and gold, yes, nickel and copper, no.

While the highest paper valuation is $50,000,000:
Attachment 43231

I would not trade it for this 1 copper coin that I own from Zim:
Attachment 43232
Attachment 43233

Re: Zimbabwe coinage value
 

I have heard ( read) reference to currency being devalued ( called in and re-issued with 3 less zeroes for instance) while COINAGE was grnted full value status at the new rate.
that is to say, in a raging hyperinflation, let us say, all the thousand dollar bills are called in, the citizen is then exchanged the NEW dollar, worth a thousand of the OLD inflated dollars, but the same citizens ROLL OF QUARTERS is now worth a full TEN NEW DOLLARS.
the rationale is that it actually cost money to mint metallic money, and other than waitresses and your occasional nickle hoarding freak (no offense.... you know who you are) most folks dont have a lot of loose change cluttering up a bunch of ammo boxes buried in the backyard.

Re: Zimbabwe coinage value
 

I dont have anything to add ....but I just had too look at the 50 million dollar zim note.And still cant wrap my mind around that figure... the numbers are just too large and what it purchase is just too small


This is what they do.....



This is how the they destroy nation after nation no matter the color or creed... the power to print is the ultimate power of a Sovereign nation and once usurped of that right........


YOU ARE TOAST



Now I know why Jefferson said banks are more dangerous than standing armies.



T

Re: Zimbabwe coinage value
 

That is an interesting question. Once you get beyond the asset classes that are valuable because they are of utility you get to asset classes that are valuable because most people think they are. Predicting what people may think will be of value in the future is an imperfect science.

Re: Zimbabwe coinage value
 

As for retained value, I dont think you can go wrong with Food, Fuel and Firearms.

Re: Zimbabwe coinage value
 

+1

When the world is spilting in two in 2012 I am sure you can find somebody will to sell you a box of HP for a few silver rounds. :bear_tongue:


Just in case


T