Recently, the long-debated issue in the UK penny has been resolved, with the UL Parliament deciding on keeping the currency in the circulation. Its main reason is that people in the UK still pay in cash, and people should not be limited to how they want to pay their goods.
This issue is very similar to the United States penny debate, and thus, also sparked debates and discussions in the country about whether to phase out the US penny or not. Former Mint Director and U.S. Money Reserve President Philip N. Diehl shared his insight about this matter.
There is no doubt that the American penny symbolizes a lot of things and serves as the commemoration of a lot of events in American history. First of all, it is the very first coin minted when the country was formed. It also features one of the most beloved leaders of the state, former president Abraham Lincoln. It cannot be argued that the penny is not only for storing monetary value, it is also one of the most symbolic objects in the country.
However, with the cost of production, it might not be practical to create pennies anymore. During its first minting, the penny’s composition is 95% copper and 5% zinc. There was a time when the penny was even made in steel.
The modern day penny is no made out of 97.6 percent of zinc and 2.4 percent of copper, which is a complete reversal of its earlier composition. According to Philip N. Diehl of the U.S. Money Reserve, the worth of creating the penny is now twice what its worth and his is because of the zinc being used in the production.
According to Diehl, the Zinc that is primarily used in the penny is imported in China at a significant cost. This is also one of the reasons for the country’s deficit, which is valued at $2.1 million. Read more: US Money Reserve | Indeed and US Money Reserve President Discusses Elimination of Benny
Diehl also voiced his concern that with the state of China and the United States’ relationship in recent years, this cost could even rise. Diehl also stated that the penny should have been phased as early as 35 years ago.
The penny is not as significant is it had been, with the majority of Americans doesn’t found the oin useful anymore. The opposition, such as the Americans for Common Cents used their voices in order to prevent the coin from being phased out.
Even those who are from Illinois started using the coin again in order to preserve it because it features Abraham Lincoln. However, Diehl pointed out that Lincoln is still featured in the five dollar bill, and thus, there’s no reason for this worry at all.
Philip N. Diehl served as the Director of the U.S. Mint from 1994 to 2000. He is also the president of the U.S. Money Reserve. Diehl is considered as an expert in gold markets, while the U.S. Money Reserve is the most popular distributor of the government-issued currency and precious metals.
Learn more about US Money Reserve: