Robert Wenzel of Economic Policy Journal reviews WSJ article on mintage . . .
Price Inflation Will Force the US Mint to Once Again Change the Metal Content of Coins
Price inflation indexes may not indicate much
inflation, but the US Mint knows that the indexes
don't reflect the true picture .
The Mint is considering a change to the mix of
metals it uses to make quarters, dimes and
nickels, because of the climbing cost of
production of the coins. reports WSJ.
It now costs 1.8 cents to make a penny and
9.4 cents to make a nickel, costing the
federal government about $104.5 million
last year.
If the materials are altered for the first time
in half a century or more, some coins could
have new colors and weigh less, says WSJ.
It plans to keep the diameter and thickness
of any potential new coins the same as
existing specie.
Richard Peterson, the top official at the Mint,
said completely stopping production of the
penny is a "discussion topic."
"[D]imes and quarters, they are really the
workhorses of the coin lineup right now,"
Peterson said.
I fully expect that in the next bout of
accelerating price inflation that the value
of the metal content of current nickels will
soar. Thus, nickels are a great no downside
investment. If the price inflation I anticipate
doesn't develop, just spend the nickels. For
more on nickels as an investment see:
Why You Need to Own Nickels, Right Now
inflation, but the US Mint knows that the indexes
don't reflect the true picture .
The Mint is considering a change to the mix of
metals it uses to make quarters, dimes and
nickels, because of the climbing cost of
production of the coins. reports WSJ.
It now costs 1.8 cents to make a penny and
9.4 cents to make a nickel, costing the
federal government about $104.5 million
last year.
If the materials are altered for the first time
in half a century or more, some coins could
have new colors and weigh less, says WSJ.
It plans to keep the diameter and thickness
of any potential new coins the same as
existing specie.
Richard Peterson, the top official at the Mint,
said completely stopping production of the
penny is a "discussion topic."
"[D]imes and quarters, they are really the
workhorses of the coin lineup right now,"
Peterson said.
I fully expect that in the next bout of
accelerating price inflation that the value
of the metal content of current nickels will
soar. Thus, nickels are a great no downside
investment. If the price inflation I anticipate
doesn't develop, just spend the nickels. For
more on nickels as an investment see:
Why You Need to Own Nickels, Right Now
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