The penny's days are numbered

  • Thread starter Thread starter didymus
  • Start date Start date
Status
Not open for further replies.
D

didymus

Guest
CBC:
The penny’s days are numbered
Click to expand...
The federal budget is guaranteed to leave Canadians penniless — literally.
Among the victims of cutbacks outlined by Finance Minister Jim Flaherty in the government’s 2012 federal budget on Thursday is Canada’s one-cent coin.
Citing low purchasing power and rising production costs, the government has decided to phase the penny out of existence starting this fall, when the Royal Canadian Mint will stop distributing the one-cent coin to financial institutions.
Click to expand...
Over time, that will lead to the penny effectively becoming extinct, although the government noted on Thursday that one-cent coins will always be accepted in cash transactions for as long as people still hold on to them.
The value of the penny has decreased to about 1/20th of its original purchasing power. Indeed, the lowly penny has fallen so far that Ottawa described it as a “burden to the economy” in a pamphlet explaining the change on Thursday.
Click to expand...
In part because of rising prices for the metals it’s made of, it actually costs 1.6 cents to produce every penny. The government estimates it loses $11 million a year producing and distributing the penny, and that doesn’t include the costs and frustrations for businesses and consumers that use them in transactions.
A 2008 report by Quebec-based bank Desjardins estimated the penny’s existence cost Canada’s economy about $150 million in 2006. Canada’s big banks alone handle more than nine billion pennies a year, which costs them $20 million annually to process.
Click to expand...
Can we get rid of our penny? please, please, can we? We can put Lincoln on our new $2 coin.
 
Personally I think we should get rid of both the penny and the nickel, and then take a zero off all our currency.

As it is, I have to figure out what to do with my old pennies. The huge pile I have is probably only worth $10.
 
Only the Federal Government could manage to lose money producing money. If they didn’t create so much money out of thin air, backed by nothing the money wouldn’t be so worthless.
 
didymus said:
CBC:

Can we get rid of our penny? please, please, can we? We can put Lincoln on our new $2 coin.
Click to expand...
Australia got rid of its 1 and 2 cent coins some years ago. Big mistake. So was replacing the $1 and $2 notes with 1 and 2 dollar coins. huge mistake.
 
latin_rite said:
Australia got rid of its 1 and 2 cent coins some years ago. Big mistake. So was replacing the $1 and $2 notes with 1 and 2 dollar coins. huge mistake.
Click to expand...
The military exchanges stopped using pennies a long time ago and get along just fine without them. THey round everything up or down to the closest nickel and their books balance just fine every year.
 
Nine_Two said:
As it is, I have to figure out what to do with my old pennies. The huge pile I have is probably only worth $10.
Click to expand...
A copper penny (i.e. one minted prior to 1982) has close to $0.03 worth of copper. Of course, at the moment, it is illegal to melt pennies; and there is also an obscure federal law that makes it illegal to transport more than $5 in pennies out of the country.

That said, mint officials are looking at the composition of pennies and nickels and considering an overhaul. If the laws change and the mint decides to abolish the penny, people would be free to melt them down for the copper.

Google [penny hoarders] and you’ll find some extreme examples!
 
Yay! Finally, that useless penny is being dropped.

I don’t think the Americans will be following us anytime soon. They can’t even bring themselves to drop the $1 bill already.
 
Erich said:
A copper penny (i.e. one minted prior to 1982) has close to $0.03 worth of copper. Of course, at the moment, it is illegal to melt pennies; and there is also an obscure federal law that makes it illegal to transport more than $5 in pennies out of the country.

That said, mint officials are looking at the composition of pennies and nickels and considering an overhaul. If the laws change and the mint decides to abolish the penny, people would be free to melt them down for the copper.

Google [penny hoarders] and you’ll find some extreme examples!
Click to expand...
Actually, nickel hoarding has become the more colloquial favorite, as the value of the metal in the current Nickel (25% nickel and 75% copper) is roughly $.0514 as of December 31, 2011. The gubment has impose similar legal ramifications for melting nickels for their metal or transporting excessive amounts out of country. If you can get your hands on WWII era nickels (1942 - 1945) they were made of silver and their precious metal value is roughly $1.50 each!

However, in 2008, Congress introduces a bill to change the metal composition of the nickel to 100% zinc, due to the deflating value of the dollar.

Which goes to prove what Ron Paul has been saying all along. Precious metal is REAL money, not the phony junk printed by the US Mint at the orders of the Federal Reserve.
 
I thought my little girl would be all heart broken. She LOVES her pennies. But only for playing, feeding her toy horses and what not or just lining them up on the chesterfield. To my surprise, she said “oh but mommy I have lots anyway.” And something about them being dirty 😛
 
i heard today that in canada they would stop using the penny. is that also the plan here in the u.s.?
 
Status
Not open for further replies.
Back
Top