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 Replies: 86 / Views: 7,502 |
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Pillar of the Community
United States
2424 Posts |
as I was reading an article that the US gov is seeking to use other base metals in the lowest 2 denominations, the penny and nickel, I think to myself, why not go back on the gold/silver standard? would that help/hurt the US economy? why/whynot? can somone help me see why we cannot or choose not to go back on that standard?
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Pillar of the Community
 United States
2448 Posts |
Sorry man, ain't gonna happen. Look at the back flips the mint is going through with the LMC to make it worth 1 Cent each year. If the content of certain coin metals increases and also the intrinsic value of that metal, hoarders and collectors will amass huge caches as speculators. The money supply for commerce will shrink and the mint will be facing a never ending shortage of liquidity for day to day commerce. |
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Moderator
 United States
187702 Posts |
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why not go back on the gold/silver standard? Because at the current valuation, coins containing precious metals would be way to small to use?  |
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Pillar of the Community
United States
1256 Posts |
What base metals were discussed?
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Valued Member
United States
106 Posts |
I might be committing treason, but what about just getting rid of the penny. All good things must end.
If they do use another composition I hope they use a completely different design for both sides and retire Lincoln's bust.
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Moderator
United States
187702 Posts |
I agree, production of the cent needs to cease. I would even argue for ending the five cent coin's run as well. Of course, I support having them made as NIFC (Not Issued/Intended for Circulation, just as the Kennedy half dollar already is). And if they do this, I see no reason why they cannot issue them in 95% copper like the 2009 NIFC Lincoln Cents were.  |
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Pillar of the Community
United States
1080 Posts |
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Pillar of the Community
United States
3278 Posts |
Yeah get rid of the cent. Can't stand the zincolns.
Question- How long would it take for cents to get snatched up
if they were discontinued?
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Rest in Peace
United States
1729 Posts |
What other base metals could be used to replace those currently used in the cent and nickel? Steel? Aluminum? How about acrylic?
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Bedrock of the Community
United States
17884 Posts |
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Question- How long would it take for cents to get snatched up if they were discontinued? I think we would start seeing shortages in less than two months, shortage would be becoming severe by four months. Most businesses will have switched to rounding to the nearest five cent by five months. The cent would for all practical purposes be gone from circulation by eight months |
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Pillar of the Community
United States
1081 Posts |
The gold standard is no longer practical as there is not enough gold/silver to back all of the US's money. Plus there would be chaos because the price of gold and silver change so much so frequently, a $1's worth of gold at 12pm could be completely different only a few hours later.
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Moderator
United States
187702 Posts |
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What other base metals could be used to replace those currently used in the cent and nickel? Steel? Steel is a good option. Canada uses steel, and if I recall correctly, Jarden (the company that supplies the copper coated cent planchets) also supplies Canada's copper coated steel planchets. The mint would not have to change vendors; however, they cannot just start using steel planchets. I believe that using steel will requires changes to the minting process (strike pressure, speed, etcetera). All of this would have to be factored in the cost of production, which when all is said and done may not be economical at all. |
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Bedrock of the Community
United States
20753 Posts |
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Steel is a good option. Canada uses steel, and if I recall correctly, Jarden (the company that supplies the copper coated cent planchets) also supplies Canada's copper coated steel planchets.
The mint would not have to change vendors; however, they cannot just start using steel planchets. I believe that using steel will requires changes to the minting process (strike pressure, speed, etcetera).
All of this would have to be factored in the cost of production, which when all is said and done may not be economical at all.
Steel would or could be a cheap replacement for all coins but who would pay for changing over the vending machines in this country? The pay turnstyles for commuter systems? Coin opperated games in those places for kids full of those machines? Of course there is the advantage that if you dropped a coin all you would have to do is use a magnet on a stick to pick it up rather than bending down. I don't see why they just don't reduce the size of all coins so they are made to represent the values on them. For example a Cent would now be about 1/2 or less it's present size. And as the cost of production continues to increase a pair or tweezers would be used to pick them up.  |
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Moderator
United States
187702 Posts |
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Steel would or could be a cheap replacement for all coins but who would pay for changing over the vending machines in this country? Well, our tax dollars of course! Add this to the hidden costs of production and you can see that it would be best to stop minting them for circulation. |
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Pillar of the Community
United States
6326 Posts |
We've had a 4% to 8% increase on steel for our metal buildings EVERY YEAR, and even more than once in a year, FOR HALF A DOZEN YEARS NOW !! "Cheap replacement"........I'm not so sure ! ......  China, enroute to becoming the largest superpower the world has ever seen, sure is taking up a lot of resources for the rest of us ! .....  ....  Here is a new phrase for everyone........ " Steel is the new Gold"......  |
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Pillar of the Community
United States
524 Posts |
What vending machines use cents? I think the problem for any type of the coin operated machine would be minimal. The nickel might cause a problem but the owners can just round up to the nearest dime. I don't believe any other denominations would be changed.
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Replies: 86 / Views: 7,502 |
Posted 09/29/2010 1:49 pm
