| Author |
 Topic  |
|
|
Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 02/11/2008 : 16:42:16
|
U.S. Mint to use more zinc, less copper and nickelReuters Friday February 8 2008 (adds information about Mint's coin production, paragraphs 3-6)
WASHINGTON, Feb 8 (Reuters) - The U.S. Mint plans to use less copper and nickel, but more zinc, as it ramps up penny production and cuts back on nickels, dimes, quarters and dollar coins, an agency spokeswoman said on Friday.
The Mint's zinc needs will increase by approximately 2.2 million pounds (1 million kg), while its copper use will decline by 6.6 million pounds (3 million kg) and its nickel use will fall by 660,000 pounds (300,000 kg) in the 2009 budget year, which begins this Oct. 1, the spokeswoman told Reuters.
The agency said its metal needs reflect a shift in its product mix of coins based on demand, not higher metal prices.
The Mint plans to make more pennies due to new commemorative designs of President Abraham Lincoln on the coin. The penny is made from 97.5 percent zinc and the rest is a copper coating.
There will be less production of nickels, dimes, quarters and dollar coins that are made from copper and nickel.
The Mint is expected to produce 15.377 billion coins in the 2009 budget year, down from 15.425 billion coins in the current spending year. (Reporting by Tom Doggett; Editing by David Gregorio)
You must be logged in to see this link.
|
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
|
|
Ardent Listener
Administrator
USA
4841 Posts |
Posted - 02/11/2008 : 16:57:29
|
| They lead people to think they were going to dump the penny, but it appears the nickel was the real target. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
 |
|
|
insurrection1517
Penny Collector Member
USA
262 Posts |
Posted - 02/11/2008 : 20:18:01
|
This means that we should sort more now before all these new pennies are thrown into circulation and our percentages decrease.
"The agency said its metal needs reflect a shift in its product mix of coins based on demand, not higher metal prices."
I wonder if penny hoarding has had anything to do with the need for more pennies? |
Check out my auctions on ebay!: http://shop.ebay.com/lutheranamerican/m.html?_nkw=&_armrs=1&_from=&_ipg=&_trksid=p4340
http://www.mrrebates.com?refid=413556 - 3% cash back on everthing at Ebay - including coins, precious metals, etc. Much better than Ebates.
|
|
|
|
klava
Penny Pincher Member
USA
192 Posts |
Posted - 02/11/2008 : 21:25:51
|
An even better question is what this drop in copper demand will do to the price of copper? 6.6 million pounds is a pretty big decrease lol
-K |
|
|
|
horgad
1000+ Penny Miser Member
USA
1641 Posts |
 Posted - 02/12/2008 : 07:41:04
|
| What amazes me is that the mint is going ahead with plans to make a special issue of a coin that they lose money on. I would think that the last thing that they would want to do is increase the demand for the penny and increase how much money they are going to lose. Of course, they are just following orders from our "wise" congress...so I suppose that explains it. |
|
|
|
horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 02/12/2008 : 07:52:50
|
quote:
Originally posted by klava
An even better question is what this drop in copper demand will do to the price of copper? 6.6 million pounds is a pretty big decrease lol
-K
When you start talking about how much copper is used to make pennies and how much copper is in circulating pennies, the numbers look pretty impressive. However if you compare them to how much copper is used overall, they look pretty dinky.
For example, the Chinese used 3.4 million tons of copper in 2006. (I'm not sure what kind of tons they are talking about but I am going to guess 2,000 pounds per ton aka short tons.) So the Chinese use 6,800 million pounds of copper per year or 18.68 million pounds a day, 7 days a week. So 6.6 million pounds of copper should keep them going for about 1/3 of a day... |
Edited by - horgad on 02/12/2008 07:54:35 |
|
|
|
Ardent Listener
Administrator
USA
4841 Posts |
Posted - 02/12/2008 : 08:28:46
|
quote:
Originally posted by horgad
What amazes me is that the mint is going ahead with plans to make a special issue of a coin that they lose money on. I would think that the last thing that they would want to do is increase the demand for the penny and increase how much money they are going to lose. Of course, they are just following orders from our "wise" congress...so I suppose that explains it.
The special issue thing makes them money on Mint sets I guess and I bet the uncirculated rolls that are hoarded by most people from the banks are back into circulation within two years.
They lose money on the zinc cent but they really lose money on the CuNi nickel. I can't see the sense in cutting back on the clads at this time bacause there is so litle Cu and Ni in them per their face value and a cutback in production will create coin shortages. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
|
|
|
Ardent Listener
Administrator
USA
4841 Posts |
Posted - 02/12/2008 : 08:34:04
|
quote:
Originally posted by insurrection1517
This means that we should sort more now before all these new pennies are thrown into circulation and our percentages decrease.
"The agency said its metal needs reflect a shift in its product mix of coins based on demand, not higher metal prices."
I wonder if penny hoarding has had anything to do with the need for more pennies?
Yes, it will mean more new zinc cents into circulation than expected.
If hoarding is a factor it is due to much bigger operations than we see reported around here. No offense to anyone.
It's better news that they are staying with zinc cents and not another metal alloy as that might throw off the Ryedale. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
|
|
|
Know Common Cents
Penny Pincher Member
195 Posts |
Posted - 02/12/2008 : 11:56:58
|
The mint will lose less by cutting production of the clads. Correct. I believe that this is an interim step before the massive change to a completely different alloy. Perhaps the plated steel as Canada, but it's going to take some time to get the vending industry on board for something like this. Just like the last hold out of silver in the half dollar during 1965-70. I believe that 2010 will be the year for that change. It's inevitable. Our coin and currency of the realm will be reduced to paper and steel. That'll be the final 10-15 fiat swan song before everything goes digital and no coins or currency is needed. By 2010, the Mint (and Treasury) will have amassed several years of cost increased numbers to dazzle the public with their proposed massive savings. More money for social programs, etc. Besides, that'll give them another couple years for us hard money advocates to either die off or get so old that we don't care anymore.
With the Linc Zinc anniversary cents, the Mint is playing the old 1964 Kennedy half trick. People will want them. They'll be such a hot item we'll see lines waiting to get the first ones of each. The market will be flooded anyway, but they're so affordable that they'll be hoarded big time. (Look at the State Quarters program. Most of us knew that was a train wreck waiting to happen. According to the Grey sheet, most of the issues sell for under a buck over face per BU roll.) Now as the economy sours, people take a second look at their stash and decide that gasoline and eating is far better than having a jug full of them to pass along to their grandchildren. Back into circulation they go.
The Ardent comment about mint and proof sets is right on target. Not the first time that someone has produced/sold something at a loss in order to get people to buy the higher profit items. The stats will prove them absolutely correct. |
Here in Wisconsin, we have some of the highest property and gasoline taxes in the US. We're squeezed so much, I have to make my daughter wear penny boxes for shoes. At least she has an endless supply. |
|
|
|
klava
Penny Pincher Member
USA
192 Posts |
Posted - 02/12/2008 : 14:31:09
|
horgad thanks for the info I was planning on looking for the details on copper used in the world per year. That definitely puts things into more of a perspective:-)
-K |
|
|
|
Cerulean
Penny Hoarding Member
USA
993 Posts |
Posted - 02/15/2008 : 13:43:16
|
| Zinc-core nickels? |
Sorting Map
2010 First Finds Contest
Are you a Buffalo Hunter?
Wanna take seignorage away from the Fed? Spend *any* coins!
We cannot afford this government.
Cerulean's Standing Offer: $3/lb shipped for foreign coins |
|
|
| |
Topic |
|
Mint to up pennies, decrease nickels & clads....
Forum Locked
