After the U.K parliament threw out the proposal of eliminating one-penny and two-pence coins from their monetary system, talks have erupted in the U.S. as to whether the penny is still relevant or not.
The U.K. government retained the coins because it wanted to give consumers a greater freedom on how they use their money. The discussions on the relevance of the penny are underway and U.S. Money Reserve president was featured on TV talking sharing his take on the topic.
The penny is many centuries old and it started to feature former heads of state in 1909 when Abraham Lincoln was featured on the palm of the coin. Apparently, the coin is not only used to hold a market value, but also to honor fallen heroes and esteemed heads of states.
The problems with the penny started when its materials started being scarce during World War I and II. To mitigate the challenge, the composition of the coin has changed over time depending on the available materials. While it was primarily made up of steel, it is now primarily made up of zinc and a very small percentage of copper.
Owing to the scarcity of Zinc, the cost of making the penny surpasses its worth. Philip N. Diehl noted that during his interview.
The material is imported from China and apart from importation costs being high, the many moving parts in regards to political tensions that is threatening the good relations between China and the US are likely to make the cost of making the penny skyrocket even higher. Read more: US Money Reserve | Indeed and US Money Reserve President Discusses Elimination of Benny
Additionally, mining practices at the source of the material have raised environmental concerns. These considerations are beyond mere monetary considerations with Philip N. Diehl, former director of U.S. Mint, advocating for the removal of the penny from circulation.
The pennies are also increasingly losing its relevance as its usage declines. In the recent years, Americans would rather not throw the coins away than keeping them like the rest of the money. Additionally, statistics have revealed that 80% of the American population are comfortable with eliminating the penny from circulation.
With Philip N. Diehl and majority of the American population supporting the idea of eliminating the penny from the monetary system, organizations such as Americans for Common Cents are opposing it.
They are claiming that economic concerns, charitable usage, as well as alternate polls reasons are enough to retain the coin in the system. However, Philip N. Diehl believes that anyone who is opposing the move has some hidden personal interests to defend.
U.S. Money Reserve has built a solid reputation over the last decade serving more than 100,000 clients helping them to build their portfolios. It is the only distributor of government-issued coins that is recognized countrywide. It provides highest level of service, and exceptional gold coins on the market to clients.
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