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Author Previous TopicReplies: 7 / Views: 1,644Next Topic  
Valued Member
bluemule31's Avatar
United States
171 Posts
 Posted 01/09/2011  9:50 pm Show Profile   Bookmark this topic Add bluemule31 to your friends list Get a Link to this Message Number of Subscribers
I'm sure this isn't new news to many of you guys, especially with what's going on in Canada, but I read this today on Yahoo! and thought I would link it here.
http://finance.yahoo.com/banking-bu...kes-no-sense

It really blows my mind that this could actually happen given the money we are talking about when we round up. However, nothing that happens in this world surprises me much anymore
Edited by bluemule31
01/09/2011 9:58 pm
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bobby131313's Avatar
United States
24147 Posts
 Posted 01/09/2011  10:10 pm  Show Profile   Bookmark this reply Add bobby131313 to your friends list Get a Link to this Reply
At least the cents get used. They keep making dollars to sit in storage.
Bedrock of the Community
coop's Avatar
United States
62064 Posts
 Posted 01/09/2011  10:38 pm  Show Profile   Bookmark this reply Add coop to your friends list Get a Link to this Reply
Don't forget the Half dollars as well.
Bedrock of the Community
Conder101's Avatar
United States
17884 Posts
 Posted 01/10/2011  12:00 pm  Show Profile   Bookmark this reply Add Conder101 to your friends list Get a Link to this Reply
No they make a profit on the half dollars because they sell almost all of them to collectors for well over face value.
Valued Member
ebm's Avatar
United States
117 Posts
 Posted 01/10/2011  2:09 pm  Show Profile   Bookmark this reply Add ebm to your friends list Get a Link to this Reply
This no profit thing has another side. Sure, with today's copper/zinc prices the cents cost more than a cent to make.....
But these will be in circulation for the next 40 years. Not to mention that when the mint gets back unusable cents, they recycle the metal. Now if they are recycling 95% copper cents that were minted 30 years ago....then they are probably doing awesome.

Granted, if the prices of these metals continue to rise then they will probably reduce production amounts while increasing the amount of other coinage that provide a better "profit". But unless we start rounding, there will always be a need for cents. Everyone knew that with a steady rate of inflation, sooner or later cents would become "unprofitable".
Valued Member
Waredu's Avatar
United States
397 Posts
 Posted 01/10/2011  2:35 pm  Show Profile   Bookmark this reply Add Waredu to your friends list Get a Link to this Reply
Zinc cents won't be around for 40 years. They rot too fast for that.
Valued Member
bluemule31's Avatar
United States
171 Posts
 Posted 01/10/2011  5:22 pm  Show Profile   Bookmark this reply Add bluemule31 to your friends list Get a Link to this Reply
Speaking of inflation, I went to Iceland almost ten years ago and was trying to unload all my Kronurs before returning to the States.....just buying anything I could....little pieces of candy, etc. Finally I got down to a 100 kronur coin. You would think that with 100 of anything you could buy something. However, not so in Iceland (and I'm sure in other countries too).

At the time, Iceland had over 40% income tax and a national sales tax of 24%. I still have a receipt showing such from a KFC in Rejkavik. But the government touted that the people had free healthcare and a strong military. I saw three hospitals while I was there and I toured the entire country. A citizen told me that they had a five ship navy. And as many of you will recall, the entire country went broke a few years ago. Feed the beast! Feed the beast! Feed the beast!
Pillar of the Community
clairhardesty's Avatar
United States
1027 Posts
 Posted 01/10/2011  6:01 pm  Show Profile   Bookmark this reply Add clairhardesty to your friends list Get a Link to this Reply
Our taxes are probably just as high as many other countries but we spread it out so much that we don't ever see much of the taxes we really pay. A small country like Iceland shows it taxes more readily. Didn't Iceland go broke because it invested in our real estate fiasco as a country? It was trying to ride out coattails and ended riding them into the sun with us.

Anyway back to coins. I don't see the problem with a coin that costs more than face value to make. I am not sure when we became so concerned about that meaningless fact. In the 1800s, all silver and gold coins cost more than face value to make because they contained their face value in precious metal so the entire cost of production went on top of that and it was never a problem. There is no grand economic issue with the initial cost, It was always an issue when people would start hoarding the metal and buying coins at face and melting them down and selling the metal but no one is going to make any money melting pennies for a long time to come. It costs too much to separate the copper and zinc and it takes an awful lot of pennies to make any real profit anyway. Coins are used and reused so many times that their cost as a medium of exchange is extremely low. I am going to say it again, the only reason to worry about a coin that costs mare than face to make is if you have good reason to believe that people are going to rob you by buying the coins en masse and melting them for profit. If that is not happening then there is no issue. I also don't think that the copper plated zince cents will have any problem going 40 years. I see lots of 25 year old ones that still look fine. Granted, they will not have the lifetime of the bronze coins but they are still pretty darn good. I for one am not ready to start rounding the cost of goods and/or taxes to the nearest nickel or dime.
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