http://www.gsnmagazine.com/node/226..._legislativeFri, 2011-03-04 10:54 AM
By: Jacob Goodwin
Because the metals that make up pennies and nickels are now worth more on the commodities market than the actual face value of those coins, the U.S. Government is concerned that some speculators might buy large quantities of these coins to profit from their metal value.
As a result, the U.S. Congress passed the Coin Modernization, Oversight, and Continuity Act of 2010, which authorizes the Secretary of the Treasury to launch a research program to examine a wide variety of possible new metallic materials that could be used to manufacture U.S. coins, as well as a variety of new production technologies.
The U.S. Mint, which has been delegated the authority to conduct this research, is now trying to get its arms around all the possible factors that should be taken into account as part of this broad examination. Among the factors that it will consider are the impact that a change in metals might have on armored-car operators, public transit agencies, risks to public safety and vulnerability to counterfeiting, according to a notice published by the U.S. Mint in the Federal Register on March 4. The study will also look at "the effect on vending machines and commercial coin processing equipment and making certain, to the greatest degree practicable, that any new coins work without interruption in existing coin acceptance equipment with modification...," the notice explains.
The value of the metal content of one-cent and five-cent coins has exceeded their face value, compelling the U.S. Mint to implement regulations to protect them from arbitrage, the notice says.
The public is invited to submit its comments on the possibility of using new metals to manufacture U.S. coins by sending an e-mail to coinmaterials@usmint.treas.gov by April 4.
Further information is available from Jean Gentry, deputy chief counsel of the U.S. Mint, at 202-354-7359.
Posted 03/09/2011 06:58 am
