U.S. Money Reserve vs. the Penny: Is the Coin Obsolete?

Find a penny, pick it up. Or should you?
Recently, the penny has come under fire and arguments against its continued existence and circulation have been widespread. Most notably, the U.S Money Reserve President, Philip Diehl, has voiced his opinion that the penny should be eliminated among the rest of the U.S. currency.
According to Diehl, the value of the penny has decreased, and the cost to produce it ends up being higher than what it can be used for. As reported by CNBC’s Squawk Box, Dieehl is a staunch opposer of the penny.
Founded in 2001, the U.S. Money Reserve is an Austin, Texas based distributor of government issued gold, silver and platinum coins. Working with Senior Gold Specialists, the Reserve offers premium quality coins and exceptional customer service to its clients. It has successfully shipped over one million coins, totaling about a half billion dollars of merchandise. The experts who work at the U.S. Money Reserve engage constantly in research to pass the latest market information onto coin buyers. The operation is professional and highly respected.
Thus, Diehl’s rejection of the penny is rather significant. While others argue that the penny is necessary for keeping prices from being distorted and even preventing inflation, Diehl is of a differing opinion. He states that very few sales would be at all affected should the penny be eliminated, as only about 25% of all transactions are done using cash nowadays.
The annual cost to produce the penny is $105 million. The biggest opposition to getting rid of the penny are the companies who help manufacture the penny, and the zinc industry. The penny is over 90% zinc, and stopping production of it would be a huge blow to this business.
The future of the penny is hazy, but what is certain is that more and more influential people are openly criticizing the currency. It remains to be seen whether the coin will last much longer.

January 28, 2016

One thought on “U.S. Money Reserve vs. the Penny: Is the Coin Obsolete?

  1. Leslie Ruben Post author

    What’s more, he trusts that without the penny, organizations would probably round costs down. Losing the penny may work for the advantage of the client. It is good to identify that for best essay writer and make amends immediately too.

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