Peter Schiff says the 7.76 cents of metal inside every nickel makes it a better bet than U.S. Treasuries

Economist Peter Schiff is suggesting that nickels may be a better investment than U.S. Treasuries. Schiff argues that the metal in modern nickels is now worth more than their face value, and points out that the copper and nickel inside each five-cent coin is worth about 7.76 cents, roughly 55% more than their face value. He recommends purchasing the coins before the U.S. government might stop producing them.

However, legal restrictions make Schiff's strategy difficult to implement, as melting nickels for their metal value is prohibited and can result in fines and prison time. Additionally, producing the necessary equipment to melt coins may be challenging for most people. While Schiff's nickel bet has potential upside on paper, its practical limitations make it a less straightforward investment compared to U.S. Treasuries, which offer interest and return their face value at maturity.

For now, Schiff's nickel strategy remains an intriguing concept, but its viability depends on changes to federal regulations and the future of metal prices.