U.S. Money Reserve President Approves of Saving Money on the Penny
Philip Diehl, president of the U.S. Money Reserve, spoke out recently against the continued production of the costly U.S. one cent coin known colloquially as the penny. During an interview on CNBC’s morning show Squawk Box, Mr. Diehl proposed how eliminating the penny from circulation and halting its production would actually save American taxpayers millions of dollars.
Although the penny isn’t the only American coin that costs more to make than it’s worth, with each nickle now costing 8 cents to make, proponets of abolishing the penny say the while the nickles’ copper-nickle mix can still be adjusted to make its production cost-effective, the penny’s 97.5% zinc composition is hopeless. In 2011 the cost of production for pennies was so high, at 2.4 cents per coin, that the U.S. Mint spent $120 million to produce less than $50 million worth of circulating pennies! Although the Mint has brought down the penny’s production cost since then, with it sitting at 1.7 cents per coin now in 2015, it is still costing taxpayers an excess of $105 million to make this coin. That isn’t even taking into account the effects that the cost of transporting pennies has on businesses and the overall American economy.
Metal coinage has a long and exciting history not only in the United States but across the whole world. Because of the intrinsic value of certain metals, governments and merchants have been able to use coins minted from different metals to facilitate taxation and trade. As inflation goes up over time the value of the metal can surpass the value of the currency it is representing. Although not many people may be aware, the U.S. used to produce a half-penny coin up until 1857 when its 100% copper composition became too expensive to justify its value. If someone had held on to a cache of these they would be able to sell each one for now 14¢!
Because of the tendency of metals to gain or hold on to their value, they are a good option for investors looking to protect their assets. In fact, many investors look to the U.S. Money Reserve to supply them with government-issued gold, silver and platinum coins and bullion. By converting their currency into precious metals they are able to safeguard those assets from some of the drastic market drops that have been occurring with more and more frequency. Their expert team can help everyone, from the novice collector to the experienced investor, gain control of their financial security.