Canada to kill the penny?

[Pennysaved]

http://www.thestar.com/news/canada/article/906436--senate-committee-report-recommends-killing-the-penny?bn=1

Saw this article on coinflation.

If Canada stops making the penny, will the premium of Canadian copper pennies go up? or will that not happen until the U.S. does away with the penny too?

[AdamsSamoa]

of course they will go up..... they will not be making them anymore.

[Pennysaved]

Well I wasn't sure if the answer was that easy.

If copper pennies are still easy to get in the U.S., we would still have a source for cheap copper pennies.

I would see if the U.S. and Canada both do away with the penny, then premiums of copper pennies should shoot up quite a bit.

[frugalcanuck]

I would not be happy about that because they (the senate) said they will make it so pennies would not be legal tender anymore. This means my copper penny investment may have a chance to go below 1 cent per penny. Face value would dissapear.

[Rodebaugh]

I would not be happy about that because they (the senate) said they will make it so pennies would not be legal tender anymore. This means my copper penny investment may have a chance to go below 1 cent per penny. Face value would dissapear.

I am sure there would be a "turn in your pennies" period. Which would be a great steel dump opportunity. Of course keep the coppers and MELT....baby....MELT

Trust me, the Canadian dollar just as the USD is only going to get more diluted with time. The time to step up your hoarding has arrived.

[aristobolus]

This got me thinking...Why does the U.S. keep the penny? I am sure many of us have different valid reasons to put forth, such as the lobbying of the copper/zinc industry, tradition, etc. But I have another thought. Perhaps the powers that be have wanted us to focus on minutiae in savings, all the while as they watch us borrowing and spending like drunken sailors! Let me explain, we must admit that Americans and Canadians will on the one hand drive a half mile just to save a few cents as the gas pump, or purchase extra foodstuffs if they can get them at a few cents off. However, these same fine people will without much thought charge thousands of dollars on their Visa at 10% + interest, or spend boukou bucks on useless entertainment or the like. Imagine the U.S. and Canada in the 1800's with coins denominated as 1/100 of a cent? Sounds absurd? Welcome to your world! It gives fresh meaning to "Penny wise, dollar foolish".

[misteroman]

I would not be happy about that because they (the senate) said they will make it so pennies would not be legal tender anymore. This means my copper penny investment may have a chance to go below 1 cent per penny. Face value would dissapear.

I am sure there would be a "turn in your pennies" period. Which would be a great steel dump opportunity. Of course keep the coppers and MELT....baby....MELT

Trust me, the Canadian dollar just as the USD is only going to get more diluted with time. The time to step up your hoarding has arrived.

CANT SAY IT ANT BETTER!!!!!!

[AGgressive Metal]

The only downside is that most people won't leave "silver" coins lying on the ground for us to find, whereas they currently leave penny surprises all over the place

[aristobolus]

I would not be happy about that because they (the senate) said they will make it so pennies would not be legal tender anymore. This means my copper penny investment may have a chance to go below 1 cent per penny. Face value would dissapear.

I am sure there would be a "turn in your pennies" period. Which would be a great steel dump opportunity. Of course keep the coppers and MELT....baby....MELT

Trust me, the Canadian dollar just as the USD is only going to get more diluted with time. The time to step up your hoarding has arrived.

CANT SAY IT ANT BETTER!!!!!!

De acuerdo! Which in Espanol translates "Agreed".

[henrysmedford]

It is funny that on Sunday I ordered a 100 penny tubes so my son could sort all the Canadian cents he finds not knowing that the penny might be gone .We use coin sorting to keep him busy with his autism. I think the FV might go up when they go out of circulation.So at this point we will save them all. We have only been keeping hole fillers and George V and George VI and 1953-1967 and the 1967 with the bird. Now we will have a tube for all dates.

[NDFarmer]

The U.S. also needs to drop the penny from circulation. With just about every business having computerized cash registers it is no problem to round to the nearest nickel. So on some transactions you might loose 2 cents and on some you will gain 2 cents, but by the end of the day you will come out about even. If the U.S. would drop the penny and lift the melt ban it would save the country a lot of money from dealing with this useless coin. Plus I think it would make the price of our copper jump quite a bit. Until the melt ban is lifted I don't think the price of our pennies will move much.

[henrysmedford]

Also in in Canada a penny is only legal tender up to 25 cents from the web---

Legal tender of Canadian coinage is governed by the Currency Act which sets out limits of:
40 dollars if the denomination is 2 dollars or greater but does not exceed 10 dollars;
25 dollars if the denomination is 1 dollar;
10 dollars if the denomination is 10 cents or greater but less than 1 dollar;
5 dollars if the denomination is 5 cents;
25 cents if the denomination is 1 cent.

[highroller4321]

I would not be happy about that because they (the senate) said they will make it so pennies would not be legal tender anymore. This means my copper penny investment may have a chance to go below 1 cent per penny. Face value would dissapear.

According to what the Canadain Senate proposed you will have a long time untill they penny aren't accepted. They proposed that they will stop making pennies in 12 months. Than they will require the banks to accept pennies for another 12 months and the banks will not be allowed to distribute them. After that second 12 month period the banks can choose if they want to except pennies or not. Only the bank of Canada (which I think it like the FED here...kinda????) will accept them indefinty.

Canada spent a bunch of money going to New Zealand and Austraiia and other places doing a study on if they penny is feasible to keep or not. According to the US. HR6162 bill they U.S has set aside 18 million to basically do the same study!! The U.S will end up finding the same results as Canada and than hopefully we will see things change.

If Canada actually eliminates the penny I think that is a fantastic sign for all Copper hoarders on both sides of the border.

[Nokozan]

if they do kill the penny, you will no longer have the option to sort boxes of penny's from the bank. that will be a thing of the past.

[frugalcanuck]

And what will you do with your rydale(s) with no penney? Canadian Ni are not going to be circulating for much longer as well.