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-   -   Coin Composition Change Included In Obama's 2011 Budget (http://projectavalon.net/forum/showthread.php?t=19859)

peaceandlove 02-05-2010 08:23 PM

Coin Composition Change Included In Obama's 2011 Budget
Coin Composition Change Included In Obama's 2011 Budget

By Alec Nevalainen
February 02, 2010



The Mint's primary cost driver is the price of metal, a factor over which it has no control. Daily spot prices of copper and zinc, the Mint's two main metallic materials, have fluctuated in excess of 100 percent, and the price of nickel by 500 percent in recent years. This contributes to volatile and negative margins on both the penny and nickel: in recent years the penny has cost approximately 1.8 cents and the nickel approximately 9 cents to produce. Costs have exceeded the value of these two coins by over $100 million in prior years. Through its gains on other coins, the Mint annually returns hundreds of millions of dollars to the Treasury General Fund (GF) and is funded by the Mint Public Enterprise Fund.
Complete Article: http://www.coinflation.com/coinage_material.html

SOURCE: http://solari.com/blog/

See also this thread:

Mass Inflation Ahead -- Save Your Nickels!



I predict that until perhaps 2010, the US Mint will continue to produce nickels with the current metals composition. This is an open window of opportunity, during which time SurvivalBlog readers can salt away countless bags of nickels.

Within just a few years, the base metal value of a nickel is likely to exceed two times ("2X") its face value. (10 cents each.) The nickel will then begin to disappear from circulation. (Gresham's law is unavoidable.) Unlike the mid-1960s experience, the missing nickels will not cause a crisis, since pennies will suffice, and most vending machines now use dimes as their smallest purchase increment. Meanwhile, most bridge tolls and toll roads have inflated so that tolls are in 25 cent increments. The demise of the nickel will hardly cause a ripple in the news.

Unless they decide to drop the issuance of nickels entirely, the US Mint will within the next three years be forced to introduce a "new" nickel with a debased composition. It will possibly be zinc (flashed with silver) or possibly even aluminum.

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