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wagsthadog
Penny Pincher Member
USA
191 Posts |
 Posted - 08/01/2008 : 12:36:16
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Hi all,
I was just thinking the other day-
Isn't the US currently on a copper standard?
Hear me out- It used to be that no dollars could be made unless there was sufficient gold in the country's coffers to account for them, right?
Well, even though pennies don't contain much copper anymore, the nickel, dime, quarter, etc are all made of mostly copper- even though the face values exceed the copper contained inside them, the coins will always have at least a few cents' intrinsic value, 'cuz copper is a valuable metal.
I can go to the bank with $500 and walk out with $500 in copper containing coins. (hopefully a few silver...)
Soo....Doesn't that essentially boil down to us being on a copper standard?
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Gr33nday43
Penny Collector Member
USA
292 Posts |
Posted - 08/01/2008 : 12:37:50
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| For coins yes...for bills...a toilet paper standard. |
HoardCode0.1:M/1USKY:US1Cu35000
Buying and occasionally selling wheat pennies and copper pennies(Sell a lot of silver as well) PM me for more details.
http://coppercave.com
Founded by Natsb88!
http://tinyurl.com/ryedale
Ryedale apprentice for sale on eBay. Check it out! |
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pencilvanian
1000+ Penny Miser Member
2034 Posts |
Posted - 08/01/2008 : 19:05:20
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I would have to say No as far as the US being on a copper standard due to the following reasons:
1. The quantity of copper in our coins is below half of face value of coins in circulation (the nickel and pre 82 pennies being the exceptions.)
A coin's melt value worth at least half of its face value gives confidence that the coins at least have some physical value instead of the government's statement that the coins have value.
(Half of melt value would deter those who would pull coins out of circulation for metal value, at least I think so.)
Silver and gold coins were worth less than their melt value, which in turn kept them in circulation, at least until inflation pushed up the price of gold and silver.
2. Reserves-A copper standard would mean physical copper backs the value of the money issued (paper and coins.) Vaults filled with copper to be turned into coins or to be exchanged for paper dollars by citizens or foreigners (at a rate that would prevent massive exchange of dollars for copper, say a pound of copper backing every seven dollars) would truly be a copper backed currency.
3. Official status-the government would have to officially announce that the dollar was backed by copper and not "full faith and credit of the US Government". This would be a mere technicality of course if (and I do mean If) there were vaults filled with copper to back up the dollar to satisfy the curiosity and concerns of holders of dollars both in the US and abroad. Since no nation wants to have a metal or commodity backed dollar and end up with a strong dollar (help the exporters at the expense of those living in the nation who have to buy any imported goods) I would have to say no, we don't have a copper backed dollar, either officially or otherwise. |
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wagsthadog
Penny Pincher Member
USA
191 Posts |
Posted - 08/01/2008 : 21:52:39
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Hmm.
Makes sense, guess we're not on a copper standard after all-
Oh well, maybe in the future...: P |
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Saul Mine
Penny Collector Member
USA
335 Posts |
Posted - 08/05/2008 : 18:32:31
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| The USA can't even hold to a zinc standard! |
A penny sorted is a penny earned!
Please use tinyurl.com to post links. Long links make posts hard to read. |
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JerrySpringer
Penny Collector Member
385 Posts |
Posted - 08/05/2008 : 19:39:43
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| Is this just a cycle by the way, or has our currency lost its meaning? I still think having a standard based upon energy would hold better in the long run as long as nuclear fusion is not commercialized. |
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Nickelless
1000+ Penny Miser Member
USA
1340 Posts |
Posted - 08/05/2008 : 21:01:01
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quote:
Originally posted by Saul Mine
The USA can't even hold to a zinc standard!
Oh, come on, Saul, the zinc value in post-1982 pennies is worth 42 percent of its face value, and given the direction the dollar has been heading, I'd say that's about right! |
Why hyperinflation is inevitable...and very soon:
http://www.shadowstats.com/article/292
http://www.ChrisMartenson.com |
Edited by - Nickelless on 08/05/2008 21:01:51 |
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Aren't we currently on a copper standard?
