What The Death Of The Penny Means For Our Money

By Stefan Gleason

The dollar’s reign as the world reserve currency will come to an end some day. But before that happens, the penny will likely go into the dustbin of monetary history.

U.S. pennies have already been debased – going from 95% copper before 1982 to just 2.5% copper (and 97.5% zinc) since. Now there’s a push afoot in the Senate to junk the penny entirely.

All the sound and fury Republican leaders made about repealing Obamacare signified nothing. They aren’t eager to betray the healthcare lobby, insurance providers, and pharmaceutical companies who worked with Congress to write the law and who paid so handsomely into campaign funds. They would rather betray voters.

Supporters of eliminating the penny note that it no longer makes any economic sense to produce them.

They argue that few people would care if their purchases were rounded to the nearest $0.05, as is now done in Canada.

That’s pretty much true. You cannot buy anything for one cent anymore. The days of penny arcades are long gone.

The decline of the value of the penny toward functional obsolescence is a sad statement about our monetary system. But rather than address the underlying problem of inflation and exploding national debt, politicians like John McCain want to just eliminate the evidence of the financial establishment’s misdeeds.

According the Bureau of Labor Statistics’ own historical inflation data, a penny in 1913 (the year the Federal Reserve was created) had the same buying power as a quarter does today. But decades of steady currency devaluation through inflation have taken their toll on our once valuable circulating coins.

Even though pennies are no longer made of copper and may soon be on their way out of circulation entirely, copper pennies haven’t disappeared.

There is still a market for them based on their intrinsic copper value.

Money Metals Exchange sells pre-1983 copper pennies by the pound. While far less valuable by weight than silver, copper pennies could come in handy in barter situations. They also provide diversification into an alternative industrial metal that could become scarcer and pricier in the years ahead.

And even though dimes and quarters are no longer made of silver (as of 1965), today there is a thriving retail market for pre-1965 U.S. silver coins. They typically sell based on their silver melt value plus a small bullion-like premium.

Sometimes premiums for these historic coins surge when retail supplies become tight. But today you can obtain 90% silver dimes, quarters, and half-dollars at historically low premiums – making this category of retail silver product the best overall value currently available in our opinion. You get a low-premium entry point plus the potential for a “doubly play” profit if buy-back premiums rise down the road.

A great deal on 90% silver coins becomes even better when you get free shipping from Money Metals on any order of $500 or more. Plus, get one free Silver Eagle if you buy $5,000+ throughout the month of April! Order online or call 1-800-800-1865 now!

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, TheStreet.com, Seeking Alpha, Detroit News, Washington Times, and National Review.

Image Credit: Pixabay.com

  • rahrog

    Depending on how the counterfeit paper market is being manipulated, on most days it takes a $20 bill to purchase a 1965 (or earlier minted) quarter. I will type that again – it takes a $20 bill to purchase a 1965 (or earlier minted) quarter.

    THINK ABOUT IT!!!

    While you are thinking about it, buy precious metals, in any physical form, anytime you can.

    PEACE & PROSPERITY

    &

    SECEDE…SECEDE…SECEDE!!!

    • MA Deuce

      Today`s value of 1 oz. of silver is $18.41 , why pay $20 for a quarter ?

      • rahrog

        You might have missed the point I was making.

        I am glad you know what an oz. of silver is selling for in counterfeit currency.

        • MA Deuce

          Well then,how can you say that a quarter is worth 20 counterfeit dollars?

  • Darkwing

    John McCain has put in a bill to eliminate the penny and coin the dollar This is to drive the American people into a cashless society, no body wants to round up to .05 cents and no one wants to carry a lot of coins. The Susan B. Anthony coin died a quick death, but the government still has the coins in storage.

  • His Abode

    Retailers will have serious objections to eliminating the penny. There is a profit advantage to pricing merchandise at 2.99, 7.99 or 89.99 because 2.99 looks more like $2 than $3; and even though we “know” better, it still works as a selling gimmick. It’s a psychological tool that works on the brain in a strange way; it’s been tested many times over the years and proven to work.
    Items could be priced at $4.95 but in large volume sales retailers make a good profit from the extra .04 cents, which makes a difference to their bottom line.
    We actually tried rounding up or down in a retail business I worked for. Although it simplified our accounting considerably, sales were definitely negatively affected. So we’ll just have to see if the retail lobbies will be able to kill the bill. It’ll be interesting to watch.

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