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 Replies: 36 / Views: 5,796 |
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Pillar of the Community
United States
2269 Posts |
Hello Everyone, All day today I have been thinking about the Lincoln Cent. More specifically, the elimination of the Lincoln Cent. Over the last year there has been an ongoing debate about the elimination of the Lincoln Cent. Bloggers have blogged about it, articles are published, online forums such as CCF have debated the issue, even the federal government has been considering it. No matter where you look online, you will find endless articles debating the issue. I am not going to use this post to further the debate as to whether the Lincoln Cent, which many of us have grown to love or hate, should be eliminated. I am going to start up a new conversation that will ponder the future if the Lincoln Cent is eliminated. If the Lincoln Cent is eliminated a few things are going to happen. The most obvious and one that will affect all collectors and non collectors is the rounding of all change to the nearest nickel. I personally believe that most businesses are going to round up rather than round down. Is the Lincoln Cent going to experience any hoarding? I wasn't born when the Franklin half was replaced by the Kennedy half, so I honestly don't know how to answer this question when it comes to replacing coin designs. The most intriguing question I have is whether or not Lincoln Cents are going to experience a sudden rise in value? Since this series would be finished, are the past issues going to go up in value. I would love to hear everyone's opinion about what could happen if the Lincoln Cent is eliminated. Also do you think the Mint should produce a Bronze Lincoln Cent to only be include in Mint and Proof sets? Thank you for your comments, Christopher |
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Pillar of the Community
Canada
1161 Posts |
Well...Here in Canada...the 1 cent coin has come to an end. No more 1 cent coins will be minted in Canada. From what I have read...in the near future the government will be requesting that all financial institutions return their 1 cent coins. I have talked with several local banks about this and so far...they have not received any orders to return any of the 1 cent coins they have for recycling. In the future...if the 1 cent coins are systematically removed from circulation...I think there would be a increase in the value on the collectors market. Only time will tell when and if this will happen. From what has been posted so far...there is no proposal to devaluate the 1 cent coin. The 1 cent coin can still be used to make purchases as usual. If that will change in the future...I guess we will have to wait and see. I do not think they will make that decision until a new process for either rounding purchases to the nearest .05 is established or enough time has passed for pricing to be adjusted on every product in Canada. It should be interesting to see what happens in the near future.  |
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Moderator
 United States
188213 Posts |
Quote:
I personally believe that most businesses are going to round up rather than round down. "If you do not take care of your customers, someone else will." Restated: in a competitive market, the smart ones will figure out that rounding down is a win. First, they can brag about treating their customers better. Second, they still come out ahead of where they would be if the customer payed electronically (with its fees). But that is not what you wanted to talk about...  Just my opinion... The days of circulation finds (either in change or from coin roll hunting) will almost immediately end. This may not have an affect the values of key dates, but it will definitely affect the common dates. Quote:Also do you think the Mint should produce a Bronze Lincoln Cent to only be include in Mint and Proof sets? Yes.  |
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Bedrock of the Community
Australia
21786 Posts |
There will be an initial increase in interest but there will always be a copious supply of them. After all they were struck in their trillions.
I think that it is possible that at least a few have survived!
The market for them will adjust just a tiny bit, but will get back to normal market fluctuations within a couple of years. I suspect that the temporary adjustment will be almost negligible.
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Bedrock of the Community
13014 Posts |
Any increase would probably be marginal at best. Theres just so many of them out there, and if they didnt get rid of it people would have time to hoard them thinking they will jump. They may go up a penny or two but not much at all for the common ones. The key dates might see an increase with the series being ended.
Most likely even if they are ended they will still be readily available in circulation for quite some time after their production stopped.
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Valued Member
Canada
262 Posts |
@cladhunter13, they're not being taken out of circulation until his fall even though they were last minted on the 4th of this month [although I've already had some rounded transactions in my favour or a cashier's], I would expect sometime in 2013 that the government would recall them, particularly to melt the copper ones.
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Valued Member
Canada
262 Posts |
As for price rounding, I think it's wait and see, it was publicly mandated in other countries that did this I believe. A smart cashier and owner would know that the lost or gained 1 or 2 cents may seem to add up, but lost sales from angry customers who didn't get the dime they wanted and instead a nickel in change can add up even faster. Fast-food chains in particular can stand to suffer since several of the same brand can co-exist in one area.
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Bedrock of the Community
13014 Posts |
Quote:
As for price rounding, I think it's wait and see, it was publicly mandated in other countries that did this I believe. A smart cashier and owner would know that the lost or gained 1 or 2 cents may seem to add up, but lost sales from angry customers who didn't get the dime they wanted and instead a nickel in change can add up even faster. Fast-food chains in particular can stand to suffer since several of the same brand can co-exist in one area. The majority of transactions now arent in cash anyway and rounding wont be an issue with these |
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Moderator
Australia
16826 Posts |
Quote:Is the Lincoln Cent going to experience any hoarding? I wasn't born when the Franklin half was replaced by the Kennedy half, so I honestly don't know how to answer this question when it comes to replacing coin designs. Judging from the amount of people I've seen discussing their jugs full of cents, I'd say hoarding is already happening. And comparing it to the Franklin half is not correct, because that was simply altering a design, rather than eliminating a denomination entirely. America hasn't eliminated a denomination since the 3 cent in 1890. Quote:
The most intriguing question I have is whether or not Lincoln Cents are going to experience a sudden rise in value? Since this series would be finished, are the past issues going to go up in value. Value is the result of combining supply and demand. When the cent is eliminated, supply goes down because the "usual" source for them - banks and retailers - dries up. However, demand falls as well, because fewer people will want to collect them once they become obsolete and hard-to-find. These two forces will for the most part balance out, leaving the value relatively unchanged. There may be an initial spike, especially if the timing of the announcement to cancel the cent creates a low-mintage final year (this happened in New Zealand when the 5c was eliminated and other denominations redesigned in 2005). But apart from that I think you're unlikely to see them rise in value any faster than they are rising today. Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Valued Member
United States
410 Posts |
I vote for a very slight increase in value and no, the mint shouldn't include them in mint sets.
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Valued Member
Canada
262 Posts |
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The majority of transactions now arent in cash anyway and rounding wont be an issue with these To this day that isn't the case in my country at least: Quote:
In the age of debit and credit cards, Canadians still love cash.
That's the conclusion of an unusual survey by the Bank of Canada which talked to about 6,800 Canadians, including half who were asked to record their purchases over a three-day period.
The finding is that cash still accounts for 53.8 per cent of all transactions, and if the purchase was under $25, that portion goes to about 70 per cent. Source: http://www.cbc.ca/news/business/sto...t-cards.html |
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Pillar of the Community
 United States
2269 Posts |
Sap you are already right when it comes to hoarding. The copper cents are already being hoarded by some including myself. I have no intention of hoarding the Zincons, but I wonder if others will?
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Valued Member
Canada
262 Posts |
I'll admit it, I hoard them as well.
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Valued Member
United States
131 Posts |
I hoard by being lazy. Not wanting to carry lots of change I toss my pennies into a giant jar and it's probably got 4 boxes of pennies in it.
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Valued Member
United States
410 Posts |
I'm lazy too. I have a jar of pennies that just sits in my closet. My credit union has a coin machine but it only holds $100 of pennies. I don't have that many but both times I've taken pennies the bag filled up. It is at least a 30 minute wait for the manager to come out and change the bags. Not worth it for a couple bucks in change. To bad I don't know of any kids doing a penny drive.
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Bedrock of the Community
United States
20753 Posts |
The 20 cent coin is gone. The 2 and 3 cent coins are gone. Even the Half Dollar coin is vanishing. Large size Dollars are only in collections. The famous Indian Head/Buffalo Nickel is gone. Mercury dimes, Liberty Head Dimes, etc. also are gone. Did their values change as they vanished? Of course anything that is no longer made becomes a collectors item and when that happens, the prices just go up, up, up. Even the Edsel Auto is now valuable and once no one wanted them at all. |
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Replies: 36 / Views: 5,796 |
Posted 05/21/2012 6:54 pm
