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 Replies: 21 / Views: 10,608 |
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Pillar of the Community
United States
997 Posts |
In a USA Today article at http://www.usatoday.com/story/news/...rs/74727160/ the guy cashing in a long term collection of pennies mentions: Quote:
Anders said he has truly enjoyed looking at his penny collection to the extent that in the 1970s, when the U.S. government offered a $25 bonus for every $100 worth of pennies turned in, he refused to cash in his collection. Was there such a program or is his memory faulty? I have never heard of this before and I am sure I would have then... |
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Valued Member
United States
374 Posts |
Yes. Banks offered a ten percent premium for people who would turn in their pennies, due to the penny shortage of 1974. During the shortage, people hoarded copper pennies because the value of their copper exceeded their face value. People hoarded them to such an extent that there were hardly any in circulation, so the banks and the goverment had to get involved and encouraged them to turn in their cents. I never heard of a 25% premium, though. It seems a little high...
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Valued Member
United States
214 Posts |
I never heard of it, and I don't recall any penny shortage that would have prompted it.
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Valued Member
United States
374 Posts |
Well, due to copper prices rising so high, if you recall in the coin "history books", the mint made 1 1/2 billion experimental cents made of aluminum due to of (1) high copper prices, and (2) penny shortage of 1974. However, all of these cents were melted and none were released in circulation.
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Valued Member
United States
214 Posts |
Apparently I was wrong. I just did a Google search, and it appears that there was a shortage in 1974 and banks and stores were paying a premium for rolls of pennies. The premiums appeared to vary by bank and store.
Edited by teo2015
10/28/2015 11:00 am
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Rest in Peace
 United States
1380 Posts |
I remember the grocery stores offering premiums for cents, but I remember them being about ten percent where I lived.
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Moderator
 United States
187862 Posts |
Link has been fixed.  |
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Pillar of the Community
United States
4867 Posts |
This is all very interesting. Was there actually a copper shortage? That would explain a penny shortage. But if there wasn't a shortage of copper then why didn't the mint just churn out more penny's?
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Bedrock of the Community
United States
17884 Posts |
I think this may be a confusion of two different things. Yes banks were paying a premium, and the Mint did have a program where anyone turning in $25 in cents could get a certificate of appreciation signed by Director Mary Brooks.
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Valued Member
United States
462 Posts |
Quote:
Well, due to copper prices rising so high, if you recall in the coin "history books", the mint made 1 1/2 billion experimental cents made of aluminum due to of (1) high copper prices, and (2) penny shortage of 1974. However, all of these cents were melted and none were released in circulation. That we know of  |
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Pillar of the Community
 United States
997 Posts |
Quote:
Link has been fixed. Didn't know it was broke, it worked for me after I posted it... Thanks anyway! |
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Moderator
United States
187862 Posts |
The forum was breaking it. Bobby had to tweak something on the back end.
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Pillar of the Community
United States
959 Posts |
Never really noticed the penny shortage. In the 70's, it was all about a gas shortage. Quote:
The 1973 oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries (OAPEC, consisting of the Arab members of the OPEC plus Egypt and Syria) proclaimed an oil embargo. By the end of the embargo in March 1974,[1] the price of oil had risen from $3 per barrel to nearly $12. The oil crisis, or "shock", had many short-term and long-term effects on global politics and the global economy.[2] It was later called the "first oil shock", followed by the 1979 oil crisis, termed the "second oil shock." |
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New Member
United States
1 Posts |
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Moderator
United States
187862 Posts |
Interesting article find.  |
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Valued Member
United States
374 Posts |
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Replies: 21 / Views: 10,608 |
Posted 10/28/2015 10:28 am
