Schiff's Nickel Conundrum: Copper and Nickel Prices Trump Treasury Yields

Peter Schiff has been making waves in the investment world with his unconventional advice to buy nickels instead of US Treasury Bonds. He argues that the copper and nickel inside each coin now outvalue the bond market.

Schiff's logic is based on the fact that the melt value of a nickel is 7.76 cents, which is about 55% above face value. However, he also notes that the U.S. government stopped making pennies last year and may soon stop making nickels too.

The prices of copper and nickel have been on the rise lately, with copper closing at $6.69 a pound on COMEX and nickel settling at $16,776 a tonne. This values the metal at 7.63 cents, roughly 53% above face value.

However, there's a catch - federal law prohibits melting or exporting five-cent and one-cent coins, with violators facing fines of up to $10,000 and five years in prison.