http://www.survivalblog.com/2011/03/two_letters_re_nickels_as_an_i_1.html
quote:
Presently nickels are in odd and always short-lived situation for a circulating coin: Their base metal value exceeds their face value. But for now, they are still freely available at their face value. Gresham's Law dictates that they will soon be driven from circulation. Mark my words: Once the base metal value surpasses 10 cents for the 75/25 composition Nickels, they will almost magically disappear from circulation. Poof! They will be gone.
Something very similar happened to silver Dimes, Quarters, Half Dollars in the mid-1960s. In 1964 they were still found in everyone's pocket change, but by the end of 1965 they had nearly all been wisely gathered in Mason jars at home and put under lock and key. This is explained by the Coinage Act of 1965, that introduced debased coins (copper slugs that were just flashed with silver), that started circulating side-by-side with the genuine 1964 and earlier silver coins. Gresham's Law dictated that the new, debased "bad" money would drive the older genuine "good' money out of circulation. Just a few years later, most of the the 90% silver coins that were deem non-numismatic (derisively called "junk" silver by collectable coin dealers) had been gathered into $500 and and $1,000 face value bags, and traded as a commodity. We need to learn from history. It doesn't repeat, but it often rhymes.
The same thing will happen to nickels, when the U.S. Treasury inevitably introduces a debased nickel. Coin experts predict that the new five cent piece will either be a stainless steel slug, or a zinc slug that is flashed with nickel or silver. Either way, a "nickel" will no longer contain any appreciable amount of nickel. But being sheeple, folks will probably still call them "nickels".
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