In a world chasing Bitcoin (BTC), gold, and tech stocks, one American individual has made a decidedly analog bet: buying $250,000 worth of physical nickels.
The man called Kyle Mitchell revealed on X that he has accumulated 5 million coins, roughly 55,000 pounds of metal, stored in boxes from a local bank vault. His rationale is that each U.S. nickel contains 75% copper and 25% nickel, with a melt value hovering around $0.043 to $0.047 depending on commodity prices. That is nearly 95% of its face value, meaning the U.S. Mint loses money with every coin it produces.
His thesis is simple. Once Congress approves cheaper materials for new nickels, the existing metal-rich coins could disappear from circulation, similar to the pre-1964 silver coins when their melt value surged decades ago and they disappeared from circulation.
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"Worst case, I've got $250,000 in legal tender," Mitchell wrote. "Best case, the melt value doubles, triples or gets banned outright."
However, under U.S. law, it is illegal to melt or export nickels and pennies for their metal content. The restriction, issued by the U.S. Mint in 2006 under 31 CFR §82.1, carries penalties of up to five years in prison and a $10,000 fine.
The rule was designed to prevent hoarding after metal prices surged beyond each coin's face value.
"It's not crypto, it's not stocks, it's not even silver. It's 5 million tiny claims on an industrial commodity the government accidentally subsidizes. That's deep value. That's the Nickel Standard."
Related: What is Crypto? Cryptocurrency explained
Hedge against volatility
In a series of posts on X, Mitchell has also shared his opinions on the benefits of owning physical nickels. In one post, he mentions that a person can pay their taxes in the U.S. in nickels.
In another post, he urges people to own nickels , calling them the "last true inflation hedge."
Veteran trader reacts
On Oct. 20, veteran trader Peter Brandt took a jab at Mitchell, saying that he was late to this by 50 years.
"Back in the 1970s, there was an actual futures contract on silver coins. I traded bags of silver coin futures in 1974," Brandt wrote. "That makes me 50 years before your outdated post."
This story was originally reported by TheStreet on Oct 20, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
