AND PENNIES, NICKELS STILL COST MORE TO MAKE THAN THEY’RE WORTH
By FITSNEWS || It’s been awhile since we last checked in on “minting,” which contrary to our founding editor’s definition has nothing to do with inhaling an entire half gallon of Breyers’ mint chocolate chip ice cream in one sitting.
“Minting” refers to the federal government’s money-losing production of coins – including two that cost more to make than they’re worth (making them less-than-ideal widgets). And while prices have gone down in recent years due to declining copper prices – taxpayers are still getting a raw deal.
According to the latest data, it costs 1.66 cents to make a one-cent penny and 8.09 cents to make a five-cent nickel. That’s down from 2.41 cents and 11.48 cents in 2012, but still … it adds up to a $105 million loss for taxpayers each year.
By comparison, a ten-cent dime costs 3.91 cents to produce – while a 25-cent quarter costs 8.95 cents.
“America shouldn’t be making coins that are worth less than half their face value,” we wrote two years ago. “Of course we shouldn’t be printing more money out of thin air, either … but that’s another story.”
Indeed … and that story has gotten worse, not better.
So … if coins are worth more as metal than currency, why not hoard them and melt them down?
Yeah, that’s illegal … as of 2007.
“The rising commodity prices of copper, nickel, and zinc have increased the value of the metal in both pennies and nickels so that the content of these coins now exceeds their face value,” the U.S. Mint stated at the time. “There is concern that speculators could remove pennies and nickels from circulation, and sell them as scrap for profit.”
Sheesh …
So to recap, government loses $105 million a year minting coins that are more expensive to make than they’re worth … yet bans you from melting them down to realize their actual value.
And we wonder why this country is $18 trillion in debt?
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26 comments
There’s not too many investments where you can make over 39% at spot value in real time.
I’ll be on the lookout for gov’t goon squads kicking my door in over boxes of nickels.
I’ll be on the lookout for gov’t goon squads kicking my door in over boxes of nickels.
They’ve kicked down doors and shot the family dog over less, assuming they even showed up to the right address.
I’ll just tell them that Thomas Jefferson is my idol. I’m sure they’ll cut me slack. Maybe I’ll drop “Empire of Liberty” on them and hope they are former military. (most likely they will be) Anything to calm the PTSD so they don’t shoot my ass.
They cant’s takes my precious(s) though.
(Sings)
Grandma got run over by the SWAT team
Sitting in her parlor Christmas eve…
You can say there’s no such thing as Eric,
But as for me ‘n’ Grampa, we believe.
You’ll not be seeing that return today. Current melt value of a nickel is about $0.045ish. Nickel would have to move from $7 to $10 or copper from 2.90 to somewhere near … $5 per pound?? IDK. It takes a minute though. My head hurts
Just buy silver and remember. They’ll sell you an ounce for only 20 sheets of toilet paper. :-D
Sold! I’ll take all the Silver you have. I can’t find any pure Silver west of the Rockies for less than $20 per ozT. (The taxsuckers are trying to infiltrate the coin dealers and extract their tributes and tithes.)
It seems that because Silver is fungible in several western states now, the g’ment is trying tricks to squash the exchanges of any useful mediums … as Roosevelt did in the 30’s … which exacerbated the Great Depression … which ruined the poor … which shows that propaganda works for the “progressive” Fascists … and the g’ment central planners, schemers and scammers do not pay any attention to history, even when the knife falls… …
What every young boy should know: if your threat assement evaluation does not include possible historical negatives, you are dreaming, not planning.
I got some extra aluminum foil if you need a hat.
PRO TIP:
For haberdashery, use tin foil. Aluminum foil doesn’t work.
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What are they teaching kids i government run schools these days???????
Hold on to your genuine tinfoil — it is probably collectible.
https://en.wikipedia.org/wiki/Tin_foil
Of interest: those “tin foil” hats don’t work unless they are grounded. Just out in time for Christmas: proctologist’s insert with grounding wire to the hat … works, I’m told.
Those pure copper pennies from the post war era are now worth their weight in the open markets = ~~ $0.12 cents per copper penny, collectible or not.
And those 92% Silver Dollars? They go for US$16 Dollars each, if you can find them.
The US G’ment Mint(s) also are producing .9999 fine one troy ounce coinage … which is going for about $2 bucks more than the world spot Silver price = ~~ $18.00 in coin shops (and by mail order).
What’s the melt value of zinc plated lead?
My boss wants to know.
The vending machines at work now accept debit/credit cards. Coins are in decline. The government should be saving money by not having to mint as many coins or dollars.
To hell with that. They don’t need to know what I spend my money on!!
I have given up on privacy. I’m going to have a NFC chip embedded under my skin.
I Impeded them from implanting mine too!! :-D Good for YOU
Impeded? I’ve got ten thumbs and a small phone.
“I’m going to have a NFC chip embedded under my skin.”
You’ll be just like my cat then.
Good kitty! Now go back to your gov’t master, I’m all out of kibble.
:)
As a long suffering Raiders fan, TBG will have the AFC chip implanted….
“So to recap, government loses $105 million a year minting coins that are more expensive to make than they’re worth …”
Tell us how much the government makes on dimes, quarters and other collectible coins.
http://www.usmint.gov/downloads/about/annual_report/2013AnnualReport.pdf
Net profit for 2013 operations was $82,730,000, up from $37,249,000 in 2012, and the Mint transferred $350,000,000 to the US Treasury General Fund in seigniorage.
Bottom line: another fail for Will trying to make a point about money.
Will demonstrates again and again he knows nothing of finance, economics, or monetary policy, much less money and coinage.
What you posit is not simple, but it’s not as simple as you post.
“The “50 State” series of quarters (25-cent coins) was launched in the U.S. in 1999. The U.S. government planned on a large number of people collecting each new quarter as it rolled out of the U.S. Mint, thus taking the pieces out of circulation.[6]
Each set of quarters is worth $14.00 (a complete set includes quarters
for all fifty states, the five U.S. territories, and the District of
Columbia). Since it costs the Mint about five cents for each 25-cent
piece it produces, the government made a profit whenever someone
“bought” a coin.[7] The U.S. Treasury estimates that it has earned about US$6.3 billion in seigniorage from the quarters over the course of the entire program.[8]”
From wikipedia on “seigniorage”
Are we also counting the loan value the coin represents? Then there’s the distribution cost, which is not that nominal. Whatever seigneurage phony coinage creates, it is far exceeded by the cost owed to the backers (US taxpayers.)
Start by quit making pennies. They are useless and prices can be rounded off!!
All inflation is caused by government, government prints and coins the money, and government can too easily make too much.