Late Night Thought: There May Be Undervalued Assets in Your Pocketby alphadawgg on May 13th, 2008 at 2:19 am |
Value investors, get this: you may be sitting on a gold mine and not even know it.
I’ll let you in on a secret: there are two “investments” that are trading well below net asset value (NAV). In fact, one of them is priced at a 51% discount to NAV! Can you guess what it is?
(I know, I know…I sound like some newsletter writer with a “teaser” stock trying to get you to buy a subscription. Relax. This is a freebie.)
According to the LME, since 2003, copper and nickel have tripled and zinc has quadrupled. Zinc is up 76% this year; copper is up 68% and nickel up 42%.
A penny is 97.5% zinc and 2.5% copper.
It now costs our government 1.67 cents to make a penny.
A nickel is actually 75% copper and 25% nickel.
I now costs our government 7.7 cents to make a nickel.
How long do you think it will take before the government figures this out?
They already know it.
There is a bill up for approval that will allow the government to mint coins, made from different metals.
May 13th, 2008 at 2:42 amTrue. They’ll just change the metal composition of the coins accordingly.
Interestingly, it only costs them $0.04 of metal to make a dime and about $0.10 of metal to make a quarter.
May 13th, 2008 at 10:52 amgoing to make them from steel, just like in WWII the big one. those are worth something now too.
May 13th, 2008 at 11:07 amIn the end, we will have to do away with pennies. Everything will be priced in increments of $.05 or $0.10, taxes included.
Nice way for Uncle Sam to “round up” to the nearest $.05 increment to raise taxes.
May 13th, 2008 at 11:23 am“Bad money drives out the good.” This is the eternal maxim in civilized history. Neal Stephenson has some fun with this historical fact in his interesting — and educational — “Baroque Cycle.
As immutable as Newton’s laws of motion, the above maxim states that if fiat (ie, “false”) coin of a designated value is introduced to combat the cost of the more “pure value” previous specie, the previous specie will in effect “disappear” from the currency, and the lesser value money will dominate commerce, to everyone’s chagrin.
This is why we haven’t had gold coins for a century, and why silver coins have been abandoned as well. How long before our coinage is nothing but… paper?
To the princes of commerce, this is all inefficient — there should be no “carrying cost” for denominated fiat. After all, what is it but what they say it is? Soon, even paper will be too expensive to stand in for currency, and the inexpensive electron will take its place.
Don’t be so quick to roll those coins!
May 13th, 2008 at 11:24 amRFID????????
May 13th, 2008 at 11:39 amA “cashless” society has been in the “master plan” of the NWO for a long, long time now. The wonders of technology and electronics….
It’s so much easier to revalue or confiscate our “money” with the press of a button, or simply by just pulling the plug and starting over, getting rid of the evidence.
May 13th, 2008 at 11:51 amThe gov already has figured it out and instituted laws against melting down the penny and they are going to base metals. The story was in Barron’s this weekend. First they took our gold, then our silver and now our copper …. talk about worthless currency … zinc and steel may even out pace inflation and someday have more value than the currency they are intended to represent … then what, ceramic or silicon?
May 13th, 2008 at 1:34 pm