War nickles for gold (good trade?)

[Yougot]

A guy on Craigslist is offering war nickles at $1.85 each if traded for value in gold. It sounds too good to be true, so I figured I would ask here first (I just received my x2 1/10 oz gold coins from the deal last month)

 

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[Generic_Lad]

That isn't too bad of a deal, but I'm sure you can get a better deal if you shop around on Craigslist or offer up your own coins (melt value is about $2.50 on each one, but you rarely find full melt on them) on there. The problem is if they sell the gold coins at a premium so where even if they are paying $1.85 in trade, the premium on gold makes it so they are actually paying a lot less.

 

[ArkieBassMan]

If you are happy with the deal, then go for it. That's all the really matters.

If it were me, it would depend on the pricing of the gold, and on how much I could get for my war nicks from other sources. You might be better off selling the war nicks to a 3rd party and just buying the gold outright.

 

[iowaguy]

I think he is saying the person on craigslist has the war nickels and wants trade them for gold

 

[Generic_Lad]

If it was trading in gold for war nickels, I don't think that I would go for it. The problem is that war nickels are:

A) Illegal to melt down. Despite popular belief the law says it is illegal to melt down -all- 1 and 5 cent pieces, there is no special exemption for war nickels (or even half dimes) http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=724

B) Are not likely to be recognized by the general public in the event of a currency collapse, most people think that the nickel contains... nickel, and convincing the general public that nickels made from '42-45 contain silver might be next to impossible, especially with the breakdown in society that would come with a currency collapse (as in, no internet, no libraries, etc.)

C) They trade at such a discount to silver content. Even if the melt ban was lifted, the fact it isn't pure means refiners charge extra for melting them down. While at this time there is enough collector demand of bullion and junk silver that it would be silly to melt it down (after all, if you can get it for $2 less than spot, and sell it for $2 more than spot to a collector, why pay refining fees?), in the '80s, long lines at the refiners and low demand from the general public meant that coins had to be discounted because they weren't sure when they were going to make it to the refiners.

If you want to get silver, I'd try sniping some silver mint sets or proof sets off of eBay with the cash you get from selling your gold on the open market. While War nickels are great to get for 5 cents while CRHing, and fun to make a set with, you'd be better off getting 90% pure coins, or just generic bars/rounds.

 

[JD-GA]

There are people doing this all over craigslist. The thing is you cant sell that war nickel for melt. Percentage wise you cant even get close to melt. However your 1/10 oz eagle will sell alllllllllllllllll day long for over melt anytime you want to sell it. So the question is am I getting a good deal buying a $2.50 coin for $1.85 when doing so with gold. Here is the break down.

Currently you can sell your 1/10 eagle for $175 easily. On ebay they are bringing $190 but for arguments sake lets say $175 since there are fees on ebay. Ive sold 4 of these coins this week from $185 to $200 when gold was $1510. So for your $175 coin he is going to sell you 1.85 nickels in gold weight. But what does this mean.

Does it mean he is going to give you enough nickels to add up to a coin you can sell for $175 which would mean you getting 94.5 nickels? This is the best deal you can get in this situation.

Does it mean he is going to give you the this deal based on melt weight of your 1/10 oz eagle which would mean you get 81.3 nickels for your coin?

Or does it mean, and this is the one most scammers are using in Atlanta, that he wants you to drop the same melt percentage in your gold coin that he did in silver and trade evenly then? That is about 38% under melt which means your coin is worth $93 in war nickels meaning you get 50.4 nickels.

So here is the question you ask him next. "How many war nickels do I get if I give you a 1/10 gold eagle?" If he says 94 then you are getting a good deal, 81 its not a horrible deal but he has something immediately sellable and you do not, if he says 50 nickels then welcome his list of next victims.

This message is brought to you by the concerned citizens of craigslist trolls for hire. Lol goodluck.

 

[jim4silver]

If you are able to trade your war nickels for gold at the rate you mention it is a great deal for you assuming the gold is priced at melt. Most coin dealers I would guess would not even pay you 1.85 right now. Also, it depends on what kind of gold the person will give you. Any of the major bullion coins would be good, if it was some unknown, off the wall private minted coin/bar I would not do it because in my opinion the best types of gold are government minted bullion or coins, either modern or from 100 plus years ago.

Jim

 

[brewboss]

He's trying to trade because he can't get $1.85 for a war nickle from anyone!!!! This has bad deal written all over it. Don't do it.

 

[JD-GA]

Ive been buying war nickels at $2 each since silver hit $43 and im not going up in price until silver hits $50 because they are darn near impossible to get rid of anywhere near melt.

 

[jim4silver]

He's trying to trade because he can't get $1.85 for a war nickle from anyone!!!! This has bad deal written all over it. Don't do it.

The OP wrote his post in a confusing manner. I don't know if the poster here is giving war nickels or getting war nickels. If he meant that he, the OP, would GET war nickels and have to give up his gold, then I would say don't do it.

Jim

 

[StevoCBR]

don't do it.

 

[sneak]

Keep your gold! Do not trade for war nickles!

 

[JD-GA]

He's trying to trade because he can't get $1.85 for a war nickle from anyone!!!! This has bad deal written all over it. Don't do it.

The OP wrote his post in a confusing manner. I don't know if the poster here is giving war nickels or getting war nickels. If he meant that he, the OP, would GET war nickels and have to give up his gold, then I would say don't do it.

Jim

His very first sentence starts out "A guy on craigslist is offering war nickels....". That sentence is missing an infinitive like offering to buy in order for it to mean anything else besides the craigslist dude has some nickels. It looks though the obvious consensus is keep your gold.

 

[SeaninNH]

Gold for war nickles?

I'll do that trade. Let me know how many nickles you want for your 1/10th.

 

[jim4silver]

He's trying to trade because he can't get $1.85 for a war nickle from anyone!!!! This has bad deal written all over it. Don't do it.

The OP wrote his post in a confusing manner. I don't know if the poster here is giving war nickels or getting war nickels. If he meant that he, the OP, would GET war nickels and have to give up his gold, then I would say don't do it.

Jim

His very first sentence starts out "A guy on craigslist is offering war nickels....". That sentence is missing an infinitive like offering to buy in order for it to mean anything else besides the craigslist dude has some nickels. It looks though the obvious consensus is keep your gold.

That is correct, however in the last sentence the OP says that he received 2- 1/10 gold ounces from "the deal" last month, as if he has traded with this person before and received gold coins, hence the confusion on my part.

Jim

 

[SeaninNH]

I believe the deal he is talking about was the 2 SAEs and the 1/10 gold coin.

So it sounds like he got 2 of the offers and has 2 gold coins.