Godlike Productions - Conspiracy Forum
Users Online Now: 2,894 (Who's On?)Visitors Today: 1,001,568
Pageviews Today: 1,503,946Threads Today: 497Posts Today: 8,555
11:59 AM


Rate this Thread

Absolute BS Crap Reasonable Nice Amazing
 

Coin shortage could turn pennies to nickels

 
F.B. Nyte
User ID: 144284
United States
01/23/2007 06:08 PM
Report Abusive Post
Report Copyright Violation
Coin shortage could turn pennies to nickels
A potential shortage of coins in the United States could mean all those pennies in your piggy bank could be worth five times their current value soon, says an economist at the
Federal Reserve Bank of Chicago.

Sharply rising prices of metals such as copper and nickel have meant the face value of pennies and nickels are worth less than the material that they are made of, increasing the risk that speculators could melt the coins and sell them for a profit.

Such a risk spurred the U.S. Mint last month to issue regulations limiting melting and exporting of the coins.

But Francois Velde, senior economist at the Chicago Fed, argued in a recent research note that prohibitions by the Mint would unlikely deter serious speculators who already have piled up the coinage.

The best solution, Velde said, would be to "rebase" the penny by making it worth five cents rather than one cent. Doing so would increase the amount of five-cent coins in circulation and do away with the almost worthless one cent coin.

"History shows that when coins are worth melting, they disappear," Velde wrote.

"Rebasing the penny would ... debase the five-cent piece and put it safely away from its melting point," he added.

Raw material prices in general have skyrocketed in the last five years, sending copper prices to record highs of $4.16 a pound in May. Copper pennies number 154 to a pound. Prices have since come down from that peak but could still trek higher, Velde said.

Since 1982, the Mint began making copper-coated zinc pennies to prevent metals speculators from taking advantage of lofty base metal prices. Though the penny is losing its importance -- it is worth only four seconds of the average American's work time, assuming a 40-hour workweek -- the Mint is making more and more pennies.

Velde said that since 1982 the Mint has produced 910 pennies for every American. Last year there were 8.23 billion pennies in circulation, according to the Mint.

"These factors suggest that, sooner or later, the penny will join the farthing (one-quarter of a penny) and the halfpenny (one-half of a penny) in coin museums," he said.
The Melting Point
User ID: 186175
United States
01/23/2007 06:28 PM
Report Abusive Post
Report Copyright Violation
Re: Coin shortage could turn pennies to nickels
Its time. I'm going to start collecting pennies for fun and profit.
F.B. Nyte (OP)
User ID: 144284
United States
01/23/2007 06:29 PM
Report Abusive Post
Report Copyright Violation
Re: Coin shortage could turn pennies to nickels
Forgot the link.
[link to news.yahoo.com]
Anonymous Coward
User ID: 186133
United States
01/23/2007 06:29 PM
Report Abusive Post
Report Copyright Violation
Re: Coin shortage could turn pennies to nickels
Yay!!! I've got lots of pennies.
paladin

User ID: 186198
United States
01/23/2007 08:06 PM
Report Abusive Post
Report Copyright Violation
Re: Coin shortage could turn pennies to nickels
:dance cat:


hey F.B..

I have some 10 five gallon buckets of change..

when will it be time to cash out


:krugerrand:
Anonymous Coward
User ID: 183993
United States
01/23/2007 08:17 PM
Report Abusive Post
Report Copyright Violation
Re: Coin shortage could turn pennies to nickels
so what does this mean, my quarters will be worth a dollar each?!?!
F.B. Nyte (OP)
User ID: 144284
United States
01/24/2007 06:40 PM
Report Abusive Post
Report Copyright Violation
Re: Coin shortage could turn pennies to nickels
so what does this mean, my quarters will be worth a dollar each?!?!
 Quoting: Anonymous Coward 183993


If you mean quarters dated 1965 on, This is from the Red Book:

Weight 5.67 grams; compostion: outer layers of copper-nickle (.750 copper, .250 nickle) bonded to an inner core of pure copper.

Makes it kind of hard to figure, but for reference,

Pennies;3.11 grams of .950 copper, .050 tin and zinc.
F.B. Nyte (OP)
User ID: 144284
United States
01/24/2007 06:45 PM
Report Abusive Post
Report Copyright Violation
Re: Coin shortage could turn pennies to nickels
:dance cat:


hey F.B..

I have some 10 five gallon buckets of change..

when will it be time to cash out


:krugerrand:
 Quoting: paladin


Hey paladin,
Seems like we are never here at the same time...

Just my way of thinking, but I'd hold it until the paper money bites it....Paper money = worthless...Coins = @ the min. intrinsic value of the metal.
Anonymous Coward
User ID: 184024
United States
01/25/2007 12:00 AM
Report Abusive Post
Report Copyright Violation
Re: Coin shortage could turn pennies to nickels
bump