Peter Schiff says the 7.76 cents of metal inside every nickel makes it a better bet than U.S. Treasuries

Aditi Ganguly

Thu, September 17, 2026 at 3:45 PM GMT+3 11 min read

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Economist Peter Schiff is making the case for stockpiling nickels, arguing the metal packed into each five-cent coin is now worth more than its face value and could make a better bet than U.S. Treasuries.

In a recent post on X, Schiff said the copper and nickel contained in modern nickels is worth about 7.76 cents — roughly 55% more than their face value — and suggested people buy them from banks before the U.S. government potentially stops producing them.

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"Buy yours while you can. Much better than Treasuries," Schiff wrote (1).

There is, however, one fairly important catch: Federal law typically prohibits Americans from melting U.S. nickels for their metal value (2).

The math behind Schiff's bet

Schiff's case comes down to what the coins themselves are made of.

According to the U.S. Mint, a nickel weighs 5 grams and contains 25% nickel, with copper making up the remaining 75% (3). That works out to about 1.25 grams of nickel and 3.75 grams of copper in every five-cent coin.

Schiff has made a similar argument about pennies. In another post on X, he said a pre-1982 penny, which contains substantially more copper than newer mintings, had a melt value of 4.46 cents when copper was trading at $6.85 per pound (4). He calculated the metal in newer, mostly zinc pennies at about 1.07 cents.

The cost of producing America's smallest coins has also climbed well above their face value. The U.S. Mint reported that it spent an average of 13.31 cents to produce and distribute each nickel in fiscal year 2025 (5). That marked the 20th straight fiscal year in which the cost of producing the nickel exceeded five cents.

Pennies faced the same problem. The Mint reported an average unit cost of 3.02 cents in fiscal 2025, more than three times the coin's face value.

Are coins really a better bet than bonds?

Legal restrictions make Schiff's strategy far less straightforward in practice (2). Violating the rule can bring fines of up to $10,000 and as much as five years in prison. So someone can't simply buy $100 worth of nickels from a bank, melt them down and pocket the difference in metal value. And that's not to mention that the average person may have a hard time finding the equipment to melt coins.

Users on X were quick to point out problems.

"Appreciate this… though melting nickels is illegal for now, so it's a slow hold, not quick profit," an account called Banana Republic commented (6).

That also makes Schiff's comparison with Treasuries less straightforward (7). Treasury securities pay interest and return their face value at maturity, while a pile of nickels sitting at home produces no income.

Treasuries have risks of their own. Long-term bond prices can fall when interest rates rise, while inflation and concerns about growing U.S. debt can also make the investment less attractive.

For nickel buyers, then, much of the potential upside depends on what happens next. If the Mint eventually stops producing the coin, as it did with the penny, or metal prices climb further, existing nickels could potentially become more valuable to collectors or investors.

For now, that leaves Schiff's nickel bet with an unusual advantage on paper but a significant limitation in practice. The metal inside the coin may be worth more than five cents, but unless the rules change, investors have no straightforward way to cash in on that difference.

What you can do

Schiff's comments are especially relevant as Treasury yields climbed to 5% for the first time since 2023 (8), even as Treasury Secretary Scott Bessent announced a $6 billion Treasury buyback plan aimed at helping stabilize the bond market (9).

Persistently high Treasury yields can have consequences well beyond Wall Street. They can keep borrowing costs elevated across the economy and make everything from financing a car to carrying a credit card balance more expensive. They can also reinforce expectations that the Federal Reserve may keep rates higher for longer.

That makes this a good time to take stock of where your money is sitting and whether it's keeping pace with the economic environment.

While turning your spare change into a backyard metal-mining operation probably isn't practical, there are more conventional ways to make your money work harder.

Make your cash work harder for you

One of the few upsides of a higher-rate environment is that your cash has more opportunities to earn interest. With the federal funds rate sitting at around 3.5% to 3.75%, you don't necessarily have to take on substantial risk just to earn something on money you aren't spending right away (10).

And with inflation at 3.4% in August, leaving your savings in a traditional account paying little to no interest could gradually chip away at its purchasing power (11).

A high-yield account can offer a middle ground — a place where your cash can earn interest while remaining relatively accessible when you need it. For money earmarked for emergencies or upcoming expenses, that may be a more practical first step than opting riskier investments.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That's ten times the national deposit savings rate, according to the FDIC's August report.

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/month minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8 million FDIC Insurance eligibility through program banks.

Opt for equities

Of course, not every dollar needs to sit in cash. While higher bond yields can put pressure on stocks because safer fixed-income investments become more attractive, strong corporate earnings have helped megacaps weather rate-driven volatility. The S&P 500 is up nearly 12% year to date.

The earnings picture has been particularly encouraging. According to an August FactSet report, 86% of S&P 500 companies that had reported results by Aug. 7 posted a positive earnings-per-share surprise for the second quarter of 2026 — the highest share since the second quarter of 2021 (12).

That doesn't mean stocks are without risks. Concerns over lofty valuations, particularly around artificial intelligence, remain and higher rates can still trigger sharp market swings. But trying to perfectly time those ups and downs can be even riskier.

Rather, consistently contributing to the market can take some of the pressure off. Dollar-cost averaging lets you continue buying through both strong and weak markets, rather than betting everything on getting the timing right.

Even legendary investors like Warren Buffett encourage investors to keep investing in a low-cost index fund through "thick and thin."

"The temptation when you see bad headlines in newspapers is to say, well, maybe I should skip a year or something. Just keep buying," Buffett said in a CNBC interview (13). "American business is going to do fine over time, so you know the investment universe is going to do very well."

But building steady wealth also requires discipline. Investing on a regular basis take time, effort and attention.

Apps like Acorns allow users to invest spare change from everyday purchases automatically — helping them steadily build wealth without having to think about every market move.

All you have to do is link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio of ETFs managed by experts at leading investment firms like Vanguard and BlackRock. Over a lifetime, a little bit of consistency can go a long way.

With Acorns, you can invest in an S&P 500 ETF built and managed by experts with as little as $5 — and, if you sign up today and set up a recurring investment, Acorns will add a $20 bonus to help you get off to a great start.

The case for gold

Schiff's concerns extend beyond nickels. He warned that the recent jump in Treasury yields could be only the beginning, arguing on X that 5% could be a "launching pad to 6% and beyond (14)."

And with federal debt crossing $40 trillion (15), concerns about inflation, deficits and the long-term purchasing power of the dollar, some are looking for assets that don't move in tandem with conventional markets.

Gold has long been viewed as a potential hedge against inflation, currency weakness and periods of financial stress. It also doesn't necessarily move in lockstep with stocks and bonds, which can make it useful as part of a diversified portfolio. Gold prices have also surged by nearly 24% over the past year (16).

Today, you can combine the recession-resistant properties of the precious metal with the tax advantages of an IRA by opening a gold IRA with the help of Newport Gold.

You can get free setup, shipping and storage for up to three years with Newport Gold's Liberty bundle. Plus, you can roll over your existing IRA or 401(k) into a precious metals IRA completely tax and penalty-free.

Even better? Newport Gold offers a streamlined buyback program with no fees, ensuring you can liquidate your holdings whenever needed, along with best-price assurance.

The best part? You can download their gold guide for free and get up to $20,000 in complimentary silver upon making a qualifying purchase.

Get into real estate with just $100

Gold isn't the only hard asset investors can turn to when looking for something outside the traditional stock-and-bond mix. Real estate too can offer diversification. Property values are influenced by their own mix of supply, demand, location and rental-market conditions, while rents can rise over time as the broader cost of living increases.

But there's an obvious obstacle — getting into real estate traditionally requires a lot of money upfront. And with higher Treasury yields potentially pushing mortgage rates higher, financing a property might become even more expensive. For investors planning to rent the property out, there's also the ongoing work of dealing with tenants and maintaining the home.

That's where platforms like Arrived can help.

Backed by world-class investors like Jeff Bezos, Arrived lets you invest in shares of rental properties across the country with as little as $100.

To get started, simply browse through their selection of vetted properties, each picked for its income-generating potential and prospective long-term market appreciation.

Arrived distributes any rental income generated by properties to investors monthly, allowing you to set up a passive income stream without the extra work that comes with being a landlord of your own rental.

What's more, once you're an investor with Arrived, you gain quarterly access to their newly launched secondary market, where investors can buy and sell shares of individual rental and vacation rental properties directly on the platform.

The best part? For a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match.

- With files from Victoria Vesovski.

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