Is the Era of the Penny Soon to Close?

U.S. Money Reserve is a company that deals in coin, very exquisite coins. Coins made of precious metals such as platinum, silver, and, of course, gold are all made available to investors through the company. Anyone who wishes to learn more about the coins, coins that are deemed legal tender by the United States Mint, should check out the company’s website. One metal not to be seen anywhere in U.S. Money Reserve’s inventory is copper. On a recent interview with CNBC, Philip Diehl, the president of U.S. Money Reserve, has chosen to talk about copper. Specifically, he speaks on the subject of the future of the copper penny. Tears will come to the eyes of traditionalists when they hear Diehl speak. The future of the copper penny is bleaker than bleak.

Diehl feels there just is no reason for the United States government to keep minting the penny. Diehl flat out says no one uses the penny anymore. Maybe the only real use for the penny these days is to keep from amassing more of them when receiving change after a purchase. A penny delivers the vaunted exact change figure necessary to avoid receiving four more pennies when a bill is $10.36.

In all seriousness, the daily need for a penny is diminishing rapidly. In-person transactions employ the penny less and less. Thanks to the growth of online commerce, people are not using cash and coin as much as they once did either. Credit card and bank transfers are required in order to engage in online commerce. The penny becomes even less necessary in light of the consistent execution of such modern day transactions.

Whether or not the U.S. Mint chooses to discontinue the penny remains to be seen. With so many millions upon millions of pennies already in circulation, it is not like there will ever be a shortage of one-cent pieces.

Diehl is a former Director of the U.S. Mint so his assessment do carry a lot of weight. He does have good judgment as evidenced by the success of U.S. Money Reserve. U.S. Money Reserve is based out of Austin, TX and has facilitated the sale of millions of dollars in precious metal coins to investors all over the world. Many of the people who purchase from U.S. Money Reserve do so because they are seeking a hedge against the ups and downs of the stock and currency markets.