On December 30, 2015, President of U.S. Money Reserve, Philip Diehl, appeared on CNBC’s morning Squawk Box. The discussion that day was our beloved “penny.” It is felt that the expense of producing the penny outweighs its use. Diehl claims that the penny is not used anymore.
In other words, the old saying, “A penny for your thoughts” will have to be rewritten. The price for our thoughts has just gone up .04 cents per “thought”. It will have to be changed to “A nickel for your thoughts.” Somehow it loses something as the price increases.
Diehl claims that if you bend down to pick up a penny on the street today, you are getting paid less than minimum wage. Economists believe that by removing the penny from circulation will distort prices and possibly press inflation. Diehl contends that 25% of purchases are cash-based, and approximately 75% of purchases are done electronically. Therefore, very few purchases are affected by the elimination of a penny. Diehl also feels that businesses would round-down their prices. This statement can only be proven if and when we say “good-bye to the penny.” Many shoppers feel the sellers would round-up the product price, rather than round-down.
The savings to the American people when the coin is eliminated is $105 million dollars annually. The penny was once made of copper, but today the formula for this coin is 97.5 percent zinc. The penny blanks are outsourced, and of course, the actual stamping of the pennies are stamped by the United States Mint. It will be interesting to hear what will happen to all the jars and piggy banks full of pennies all over America? Containers full of pennies sitting in closets, collecting dust in the basements of homes?
The U.S. Money Reserve is one of America’s largest private distributors of gold, U.S. government issued gold, along with silver and platinum. U.S. Money Reserve team are highly trained in coin research and numismatology. Their staff are experts in their field and provide superior customer service.
Give U.S. Money Reserve a call when you are ready to review your long term security. Gold has proven to supersede any investment being offered on the market today when you are looking for a return on your investment. U.S. Money Reserve believes gold should be a major part of your portfolio of investments. Call U.S. Money Reserve to see which gold investment is right for you. Dial 1-866-MINT GOLD and get connected with a specialist.