In a recent PR Newswire article the merits of the penny were discussed. US Money Reserve President Philip Diehl was adamant in his opinion that the penny needs to be discontinued. Not only is this waste of a coin costing our country’s taxpayers over $100 million annually, it is worth so little that it is not even worth your time to bend over and pick one up anymore.
Proponents of the penny argue that getting rid of the penny would spur inflation and price increases across the board. However, Diehl believes many companies would round down in price in order to remain competitive in today’s marketplace. Also, three quarters of today’s transactions take place digitally rather than with cash, a fact which helps to further negate the necessity of the penny.
Another argument for getting rid of the penny is that the nickel should be discontinued as well because it costs over 9 cents. However the nickel could still be made with cheaper materials to help lower the cost, whereas the penny is already 97.5 percent zinc. Some of the main forces behind the arguments for keeping the penny are trying to protect their own business interests. These include the people who create the blanks for pennies and the zinc lobby.
Diehl is the president of the US Money Reserve. The US Money Reserve is the nation’s largest purveyor of U.S. government issued gold, silver, and platinum coins. The organization has over 100 experts on hand to assist individuals who want to expand their portfolios by investing in precious metals. The Money Reserve offers these services as a way for people to help protect themselves against inflation as well as other economic factors. By investing in precious metals individuals can be assured that their money will hold its value and increase much more often that paper currency which can be affected by geopolitical events and a variety of other factors.