Category Archives: Moeny

Should the penny be eliminated?

Well, not so fast. If the recent decision by the U. K. parliament to keep the one-penny and two-pence coins in circulation is any indicator, the small coin seems to still be a viable denomination.

This result has put the usefulness of the US penny under discussion once again and was the topic addressed by the President of U.S. Money Reserve (a distributor of precious metals and government -Issued currency), and former U.S. Mint Director Philip N. Diehl on a recent appearance on CNN. So what should be the fate of the penny?

Well, not so fast. If the recent decision by the U. K. parliament to keep the one-penny and two-pence coins in circulation is any indicator, the small coin seems to still be a viable denomination.

This result has put the usefulness of the US penny under discussion once again and was the topic addressed by the President of U.S. Money Reserve (a distributor of precious metals and government -Issued currency), and former U.S. Mint Director Philip N. Diehl on a recent appearance on CNN. So what should be the fate of the penny?

Although some say that the penny costs too much to produce and some poles indicate that 80% of Americans no longer think it’s a useful coin, alternate poles indicate there are good reasons why the penny should remain in circulation and is very important. Read more: US Money Reserve INC | BBB and US Money Reserve President Discusses The Elimination of Penny

The main reason given for the move away from the penny is the high cost of production. The penny is comprised most of 97.6 percent zinc and 2.4 percent copper.

The U. S. gets most of that zinc from China, which further adds to the trade imbalance in China’s favor by roughly $2.1 million and risks environmental damage caused by Zinc mining. Philip Diehl was quoted as saying ““It costs almost twice as much to make the penny as it’s worth”, during an interview with CNN’s Richard Quest, further stating that “only about a third of all transactions are conducted in cash.

When people receive [pennies], they often throw them away. They put them in penny jars.”

Although this sentiment to phase out the penny seems widespread, many organizations such as Americans for Common Cents says that it’s elimination would effect charitable contributions and would have an economic impact.

There is also the historical significance of the penny’s place as the first currency that was authorized by the US government, and, since 1909, has featured the image of President Lincoln, arguably one of our most significant presidents.

Since the UK decision, the debate will indeed continue. There is certainly much more to consider than just the cost of production involved in the debate.

Click on the links below learn more about Luke Lazarus:

https://medium.com/@US_moneyreserve

https://www.glassdoor.com/Reviews/U-S-Money-Reserve-Reviews-E784519.htm