Billion dollars in $1 coins

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#1 Tue, Jun 28, 2011 - 9:02am
Paladex
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Billion dollars in $1 coins

Saw this story on NPR.org and thought it might interest some of you who advocate stocking up on coins as insurance against dollar hyperinflation.

https://www.npr.org/2011/06/28/137394348/-1-billion-that-nobody-wants

For the uninitiated, the theory is that in the event of hyperinflation, the government will issue new currency that will be worth x times the amount of old currency (e.g. $1 "new" dollar = $1,000 "old" dollars), but that coins - because of the expense involved in manufacturing them - will simply be redenominated as "new."

In this example, $5,000 in coins would still be worth $5,000, while $5,000 in paper money would only be worth $5.

This would be an incredibly advantageous exchange rate for anyone with significant stores of coinage. And, of course, dollar coins are a more effective store of wealth than any other coin (although nickels currently contain about .07 worth of metal, so a lot of folks are stocking up on them as well).

Edited by: Paladex on Nov 8, 2014 - 5:06am