Kyle Bass has acquired one million dollars worth of nickels (20 million coins) because their value as scrap metal marginally exceeds their value as money. He obviously is expecting a strong price inflation that will boost the metal value of the coins much more. Which will result in their disappearing from general circulation, just like the 1932-1964 Washington quarters and the 1946-1964 Roosevelt dimes have. The metal value of the Washington quarter is now $5.89 and the Roosevelt dime melt value is $2.34.As recently as the early 1970s, both coins could be picked out of change. Quite an investment, with no downside risk! If price-inflation heats up, the nickel will provide the same type inflation protection hedge and, again, no downside. If there is no price inflation (unlikely) just spend the nickels.For the record, J. Kyle Bass is a Managing Partner and Principal at Hayman Capital Partners, LP. He also acts as a mortgage credit portfolio advisor to several other asset management firms and manages or advises over $4 billion of investments in the residential mortgage-backed securities market. Bass is also a Director of the Asset Backed Securities at Credit Derivatives Users Association.