stonewallrabbitry wrote:I read somewhere (probable on this forum) that the mint says that they own all coinage, if they already say that they own it then what is stopping them from saying that all pennies must be turned in or face a fine? Maybe I worry too much but it wouls suck to have a couple ton of copper when copper hits 4+ dollars a pound and have the government say you have to turn them in at FV
Engineer wrote:I think if the government added a zero to the end of our currency the cents in circulation would circulate as dimes do today until they were eventually replaced in circulation by the newer coins. At that point, coin hoarders would do better than the people with their money in banks which could convert them to the new currency electronically.
The logistics of an overnight currency swap would be huge, so you have to ask yourself what the treasury would need to do with our current money supply. I believe they'd need to either provide a transition period for currently circulating notes and coinage to be exchanged, or simply declare that an old penny is worth a new copper dime of the same size.
scyther wrote:stonewallrabbitry wrote:I read somewhere (probable on this forum) that the mint says that they own all coinage, if they already say that they own it then what is stopping them from saying that all pennies must be turned in or face a fine? Maybe I worry too much but it wouls suck to have a couple ton of copper when copper hits 4+ dollars a pound and have the government say you have to turn them in at FV
Public backlash. Not many people hoard pennies, so most wouldn't care about that, but the same would apply to junk silver and numismatics. That would set off a lot of alarms for a lot of people.
JerrySpringer wrote:scyther wrote:stonewallrabbitry wrote:I read somewhere (probable on this forum) that the mint says that they own all coinage, if they already say that they own it then what is stopping them from saying that all pennies must be turned in or face a fine? Maybe I worry too much but it wouls suck to have a couple ton of copper when copper hits 4+ dollars a pound and have the government say you have to turn them in at FV
Public backlash. Not many people hoard pennies, so most wouldn't care about that, but the same would apply to junk silver and numismatics. That would set off a lot of alarms for a lot of people.
As long as copper stays high(er) in price, the 95% Cu cent will be a piece of collateral or trade-equivalent on par with any currency denomination IMHO. In other words, the government could forever, in our lifetimes at least, not budge and not allow the melt to be legal, but as long as Cu keeps on keeping on, there will be a market to trade them. I cite the fact that that people put a lot of trust of those federal reserve pieces of paper we keep in our wallets. Just.a.piece.of.paper. At least copper has something more going for it. I am an advocate of setting aside cents if time and space permits. However, if interest rates start to climb, might be a good thing to unload some and collect a few % in interest too. Who knows, but I truly think the current state of things leaves little choice but to look for ways to preserve buying power if not to try and leverage it with growth assets.
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