Collecting Problems: U.S. Mint Faces a Coin Cost Dilemma..

[one_voice]

A recent move by the Obama administration may lighten wallets across the country -- but not in a bad way. According to The Wall Street Journal, the White House is considering proposals that would alter the metallic composition of America's pocket change to make it cheaper to produce the coins. Although some groups -- notably, coin collectors -- are wary of any change in the nation's metal currency, it looks like this could be a profitable move for the country.

The big problem is that some U.S. coins cost more to make than they are actually worth. The prices of coin metals, which fell to five-year lows at the beginning of 2009, have risen back to 2007 levels, driving the production price of some coins up above their face value. According to the United States Mint's 2009 Annual Report, pennies currently cost 1.6 cents apiece to produce and nickels cost 6 cents apiece; more recent estimates claim that the cost of manufacturing a nickel is closer to 9 cents.

While this may seem like pocket change, it adds up: In 2009, the U.S. Mint issued 3.2 billion pennies, worth $32.2 million. With manufacturing costs pegged at 1.6 cents apiece, the Federal government lost $19.8 million on the deal. In the same year, it also shipped 207 million nickels, at a loss of $2.2 million. By comparison, the Mint made $15 million off its sales of dimes, $132 million off its sales of quarters and a whopping $318.7 million off its sales of dollar coins.

See full article from DailyFinance: http://www.dailyfinance.com/story/investing/collecting-problems-the-mints-coin-dilemma-hold-for-nicole/19472887/?icid=main|main|dl3|link5|http%3A%2F%2Fwww.dailyfinance.com%2Fstory%2Finvesting%2Fcollecting-problems-the-mints-coin-dilemma-hold-for-nicole%2F19472887%2F&icid=sphere_copyright



Hmmm...I'm sure somewhere in the Bible, or the Constitution this is morally wrong and anti-American. Stay tuned to Faux news..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

Just in case... :sarcasm:

[HereSince1628]

1. Hmm, seems like the expected outcome of dollare devaluation to me

You can't just print money, when it must be made from precious metal.

Who would have thought that copper could be so precious!

The answer is obviously to make coins from recycled pop and designer-water bottles, unless of course we could figure out how to make them by recycling soiled disposable diapers.

[DJ13]

2. Well then, wouldnt an appropriate answer be to try and prevent

commodity speculation so the cost of metals dont spike above realistic levels?

Especially when your own Federal Reserve keeps harping about the possibility of inflation.

[no_hypocrisy]

3. Wouldn't that encourage hoarding of coins with more precious metal in them?

[hobbit709]

4. In the 70's when I was in Italy

the smallest coin made was a 10 lire coin-it was made out of aluminum. The didn't make 5 or 1 coins. If the price of something was 1597 lire, you got a couple pieces of candy. The only thing the 10 lire coin was good for was riding the elevator in apartment buildings.

[Oregone]

5. They should get China to make cheap plastic ones for us

Then the value of the worthless plastic coin would actually reflect its true value

[Pab Sungenis]

6. Nowhere near an accurate article.

It only costs more than face value to mint two specific coins: the cent and the nickel. With the cent it's because of the cost of the zinc that makes up most of it, and with the nickel it's the large amount of copper (75% of the coin is actually copper).

Both could be produced much cheaper with plated steel blanks like Canada has used for years and the UK has been introducing. It's unlikely to happen with the nickel since changing it would require retooling every vending machine coin slot in the country.

The nickel is actually the bastard child of our coinage system. It was rolled out in 1866 for two reasons: (a) an emergency release like the two-cent piece to get base coins in circulation after the Civil War drove all precious metal coinage into hoards and (b) because the owner of the only nickel mine in the country basically owned the entire Pennsylvania congressional delegation. Before that the most common coin in circulation was the silver Half Dime, a five cent piece that was half the weight of a dime.

The best proposal I've heard to date is to switch the cent to copper-plated steel (it will look and feel almost identical to today's copper-plated zinc) and phase out the nickel. If demand requires, the Mint could reintroduce the Half Dime in copper-nickel clad much cheaper than they could produce the nickel, and if slots would need to be reprogrammed anyway they'd be better off with a more logical coin.

[HiFructosePronSyrup]

7. So much for expensive change, Mr. Obama!

[Pab Sungenis]

9. A copper coated steel cent....

...small change we can believe in.

[mitchum]

8. The Coinstar company has some highly paid whores in Congress...

ensuring that the mint does not do away with the penny

[Pab Sungenis]

10. Doing away with the cent would be the most inflationary act the government count do.

Even if they claim they will be introducing fair rounding, retailers will price items so that when tax is included, the rounding always goes in their favor.

[drmeow]

11. On the other hand

They make money on the "specialty" quarters - states, territories, and now the American the Beautiful quarters.

[WeDidIt]

12. Profiting??? From our money??? THAT'S A TOTALLY RIGHT WING MOVE!!!!!

How DARE Obama betray his liberal base this way??????

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
:sarcasm: