The penny, the lowest value coin in circulation, has its future up for debate yet again. Recently, PR Newswire discussed the subject with president of the US Money Reserve, Philip Diehl.
According to Diehl the penny is a waste of time and money. The small coin costs more than it is worth, to the tune of $105 million tax dollars each year. In fact, the penny is worth so little that it is not even worth a person’s time to bend over and pick one up off the street, because they would be getting paid less than minimum wage for their effort. Diehl states that one of the main reasons the penny is even still in circulation is due to the private interests of the zinc lobby and those who create blanks for pennies.
Some argue that if the penny was no longer made then prices for consumer goods would go up. This would then lead to an increase in inflation, a scenario that would not be good for the economy. While this may have been true in the past when physical currency was used a majority of the time it holds little weight today. Currently 75 percent of monetary transactions are done digitally so prices of goods could potentially stay stagnant. Diehl also proposes that many companies would likely round down the penny or two in order to stay competitive or simply in the name of good customer service.
Another group points out that the nickel costs too much to make as well, coming in at 9.4 cents. While this is true, the nickel could still have its composition altered in order to make it profitable. This, however is not possible for the penny which is already made of 97.5 percent zinc.
The was founded in order to provide a superior outlet for investors looking to purchase precious metals. Created by veterans of the gold market the US Money Reserve prides itself on excellence in knowledge, customer service, and guidance when helping investors make decisions on which precious metals are right for them. Currently the US Money Reserve is the largest distributor of gold, silver, and platinum coins issued by the federal government.