Peter Schiff suggests investing in U.S. nickels over government bonds

Economist and Bitcoin critic Peter Schiff has proposed an unconventional investment strategy, suggesting that purchasing U.S. five-cent nickels may be superior to investing in U.S. government bonds.

Schiff argues that because the market value of the copper and nickel contained within a nickel has risen significantly, the metal content is now worth approximately 55 percent more than the coin's five-cent face value. He claims this represents a “can’t lose investment” because the metal value will not drop below the face value, whereas inflation could erode the returns of government bonds.

Calculations indicate that a single nickel, weighing five grams and composed of roughly 3.75 grams of copper and 1.25 grams of nickel, holds a metal value of approximately 7.63 to 7.76 cents based on current market prices. Schiff noted that while the U.S. government stopped producing pennies last year, it may soon follow suit with nickels.