The debate in Congress continues

http://www.msnbc.msn.com/id/24491928/

Sounds like the next month or so could be interesting! The Nickel and Cent metal debate goes on.....

 

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Some random thoughts...

1) They made 7.4 billion pennies, at a cost of 1.26c each (loss of 0.26c each). That works out to $19.2 million lost.

They made 1.2 billion nickels, at a cost of 7.7c each (loss of 2.7c each). That works out to $32.4 million lost - far more than the penny.

So most of the "problem" is the nickel, but all the "debate" is about the penny ! What does that say about the "public debate" ?

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2) Boy, aren't we all glad that a congressman is suddenly concerned about the National Debt ! Yay !!!

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3) The article said those two coins contributed $100 million to the public debt. According to the numbers they provided, that is not true... it's a little more than $50 million (see above).

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4) The article also said the other coins are made at a profit. Well, how much ? How does that work into this ? If two denominations are at a loss, but the others at a profit, is that really so bad ? What's the bottom line, $$$-wise ?

Article writers didn't bother to do the math, did they ?

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5) Can you believe our fabulous Congress is actually wasting time on this nonsense ? :headbang:

 

Well, I did the research and the math. Here's what I found* :

Net profit making 10c : $154 million
Net profit making 25c : $497 million (!)
Net profit making $1 : $ 6 million

Total profit for those three : $657 million

BOTTOM LINE : Net profit after "loss" for 1c and 5c : $ 605.8 million

30 times the "loss" for making 1c....





* Mintage figures for 2002, most recent year available on coinfacts.com . Article did not include "per coin profit" for 50c, so it's not listed. Business strikes only.

 

After freedom fries and freedom kiss....... yes :whistle:

 

What they never bother to mention is that there are massive overhead costs included in those costs that would not go away if the mint stopped production of the cent and nickel.

That would then increase the costs of those 'profitable' other coins.
Which then would be unprofitable, and they would have to eliminate them.

 

found a cool site
http://www.coinflation.com/coin_calculators.html

1 nickel
(exact value is $0.067483222820373)


Presidential dollar
(exact value is $0.068273670132264)


so yeah, maybe they just need to change the metal content

 

You also have to wonder is there any metal that would be durable enough and turn a profit for either of these two coins.

What would the real monitary gain be?

What would be the cost to the companies that make coin handling machines?

How much would it cost and how long would it take the mint to deploy a new metal coin?

Could congress be focused on bigger fish - I would have to say yes!!!

 

Lets just remember that this is Congress, by the time that they do anything it will be the year 3008.

 

Q: What's the opposite of Progress?
A: CONgress

 

Direct sold collector coins (the Half Dollar is sold only to collectors), comems, and Bullion coins are tabulated separately.

The Comems usually come close to breaking even, ie slight loss or slight gain, most of the money goes to whatever charity, cause, or whatever the coin is about.

They make good money on the Bullion and Collector coins. Bullion especially now, the Mint has been hoarding these metals since near the beginning of time, and I am sure they payed nothing close to whatever the spot is now.

The cent and nickel are small thorns in the Mints side right now.... But they -really- make a killing on the Quarters, they get used. -HARD- and people are removing the state quarters from circulation for their maps and whatnot

I forget where I saw it, but someone said the Nickel could be fixed by ditching it, and bringing back the Half Dime in coper nickel clad, As it's size and weight with copper nickel clad would be as profitable as the other coins.

In the end, both the nickel and cent need to go.

 

Maybe if we hoard them and only cough them up for cost, it will get their attention?

Ribbit

Ps: We could also support our "coin habit" this way. :whistle:

 

If the metal content of the coins is changed vending machines will most likely have to be modified to recognize and accept the new coins. Not only do the vending machines verify the diameter, thickness and weight of coins, some (most?) also have a discriminator that verifies the electrical resistance of the coins. The electrical resistance of a steel coin is not the same as a copper and nickel coin. And, if nickels are made of steel they won't make it past the magnets whose job is to catch slugs.

Before the metal content of these coins, especially the nickel, is changed the matter should be thoroughly thought-out with input from the vending industry. And don't forget that every vending machine that must be modified to accept the new coins will cost the owner $100 or more - costs that will be passed along to their customers.

 

dont worry by the time they are done arguing oil might be in 4 figures so coins wont be needed in vending machines get your franklins ready on a serious note there are some vending machines that were caught in scams in other countries that amounted to millions when copper nickel was changed to steel apparently there are still some holes there because they still wont disclose what went wrong

 

Trying to save money on pennies and nickels ? And they're worried about coins contributing to the national debt?. There is a BETTER way to save money . JMO John
A billboard in Times Sqaure counts the cost of the Iraq war starting at $134.5B and increases at a rate of $177M per day, $7.4M per hour and $122,820 per minute. By Anders Krusberg,

 

This should be a non-issue. When was it decided that money should have no value, or at least have less intrinsic value than the face value? I missed that vote.

 

Congress worries about the cost of the cent and nickel but don't care a flip about the production of billions of dollar and half dollar coins that will just sit in mint vaults for who knows how long because the public doesn't want them!

 

The world economy and progress is held hostage by the vending industry!

 

The mint does not make money or loose money by making coins. Yes it cost more then a cent to make a cent and more then a nickel to make a nickel but they do not sell the coins for face value anyway.

It is not like Joe in his garage is making yoyos that cost him $5.00 to make and selling them for $4.00. The mint is simply providing a service that the country needs for the economy. I am not sure why they look at it by what it cost to make a certain coin since they technically don't sell them. I have never heard of the mint selling any amount of coins to a bank or private individual. They are just providing a service that is needed by the country. Yes they should always be looking for ways to save our hard earned money as the entire Government should but when it comes down to it we need cents and nickels for everyday purchases.