Economist Peter Schiff recently suggested that investors should acquire nickels instead of US Treasury bonds. He claims the intrinsic value of the copper and nickel content in each coin exceeds its face value by approximately 55%. According to his estimates, the metal value of a single nickel is roughly 7.76 cents.
Market data shows copper closed at $6.69 per pound on COMEX, while nickel settled at $16,776 per tonne. Each coin contains 3.75 grams of copper and 1.25 grams of nickel. Official reports indicate that the US Mint spent 13.31 cents to produce and distribute each nickel during the 2025 fiscal year.
Federal regulation 31 CFR Part 82 prohibits the melting or exporting of one-cent and five-cent coins. Violations of this law can result in fines of up to $10,000 and prison sentences of five years. Additionally, the logistics of storing physical coins are significant, as a $10,000 stack of nickels weighs one metric ton.
The US Mint ceased production of pennies in November 2024. Schiff argues that the nickel may face a similar discontinuation. In contrast to physical coins, the 10-year Treasury bond offered a yield of 4.77% as of September 3, 2026, without requiring physical storage space.
