The U.S. Money Reserve is a private distributor of gold, silver, and platinum products. The company provides investors with the ability to diversify their assets in the form of precious metals, most of which are in the form of gold and silver coins. The U.S. Money Reserve was founded in 2001 and has a strong team of analysts and economists that help to ensure that their investors are able to make prudent decisions when it comes to investing in bullion of precious metals. The company is led by Philp Diel, the President of the company.
This past week, the President of the US Money Reserve, Philip Diel, made an appearance on Squawk Box, a popular news and economic program on CNBC. The interview was based largely on prior declarations made that the expenses associated with the penny far outweigh its actual value or use.
During his recent interview, Diehl continued to state that the penny is hardly even in use anymore and due to inflation in the dollar and in the cost of copper, there is no need to continue to produce the coin. He further made the point that if you bent over to pick up a penny off of the street, you would actually be making less than minium wage for the amount of time you spent grabbing the coin. Overall, eliminating the coin from the marketplace would save the country over $100 million every year.
The host of the show countered with the idea that if the penny is no longer produced and slowly taken out of circulation, that it could lead to price inflation and distort prices. Philip Diehl was then quick to point out that today less than 25% of all transactions are paid in cash and that this will likely continue to decline in the future as more and more transactions are completed online.
While many people are in support of the U.S. Money Reserve’s decision to consider eliminating the penny, some critics believe that they are not taking the decision far enough. Many people are quick to point out the fact that the nickel is also not cost-effective. While the nickel is only worth five cents, the materials and process to make the coin equal closer to ten cents.