Peter Schiff Gives Confusing Investment Advice On Copper and Nickel
Peter Schiff desires traders to purchase nickels as a substitute of US Treasury Bonds. He argues the copper and nickel inside every coin now outvalue the bond market.
The economist put the soften worth at 7.76 cents, about 55% above face worth. However, federal legislation bans melting the cash in any respect.
Peter Schiff’s Unconventional Nickel Math
Copper worth closed Tuesday at $6.69 a pound on COMEX, slightly below its August document. Nickel settled at $16,776 a tonne. Each coin carries 3.75 grams of copper and 1.25 grams of nickel.
Those costs worth the steel at 7.63 cents, roughly 53% above face worth. Schiff’s quantity subsequently lands near the mark. The steel additionally set a fresh record in London on Tuesday, as merchants braced for US tariffs on refined copper.
His provide warning additionally holds. The Mint spent 13.31 cents to supply and ship every nickel in fiscal 2025. Each coin subsequently prices taxpayers greater than double its face worth. The Mint struck the ultimate circulating penny final November.
Federal Law Blocks the Melt Trade
The Peter Schiff nickels pitch then hits a authorized wall. Replies to his publish flagged the issue, and they’re proper. Regulation 31 CFR Part 82 bars melting or exporting five-cent and one-cent cash. Violators threat $10,000 fines and 5 years in jail.
Schiff waved the objection away.
You don’t must soften them. They will maintain their worth.
Yet that reply skips the logistics. Each nickel weighs 5 grams. A $10,000 stack subsequently weighs a full metric ton. Scale it to $100,000, and the client shops 10 tons of change.
Meanwhile, the 10-year Treasury paid 4.77% on Sept. 3 and wants no warehouse.
The pitch matches Schiff’s long-running case against Bitcoin and paper claims, sharpened by record US debt and rising yields.
So the premium is actual on paper, but locked inside steel no one could legally soften. Whether the Mint retires the nickel subsequent will resolve if it ever pays.
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