Is it time to get rid of the penny? This is a debate that has been going on seemingly forever. According to a recent PR Newswire article, the US Money Reserve thinks it is finally time to make a move in the right direction and discontinue the circulation of the small coin.
Critics are quick to use their most popular argument of the last quarter century, that getting rid of the penny will cause an increase in prices and spur on inflation. While this argument may have worked in the past, Philip Diehl, president of the US Money Reserve, points out that today a majority of transactions are made digitally so prices would not necessarily be affected. Diehl also states that companies would be more likely to round down a penny or two in order to stay competitive in today’s crowded marketplace.
Others say that if you were to discontinue the penny which costs more than it is worth to make why not the nickel as well which costs 9.4 cents. The nickel could still be created with different materials in order to make it cheaper while the penny is already 97.5 percent zinc.
Diehl also goes on to say that the only people who have an interest in keeping the penny in circulation are those who stand to profit from it. Mainly those who create the blanks and members of the zinc lobby. For the average person a penny is not even worth the time it takes to bend over and pick it up. Discontinuing its production would also save American taxpayers $105 million annually.
The US Money Reserve was founded by gold market experts in order to fill an unmet need in the precious metals market. They sough to provide excellent customer service as well as expert guidance in order to deliver the ultimate precious metals purchasing experience. Today the US Money Reserve is the largest distributor of gold, platinum, and silver coins issued by the United States government.
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