AUSTIN, Texas, Jan. 26, 2016 /PRNewswire/ -- U.S. Money Reserve President Philip Diehl recently made an appearance on CNBC's signature morning program Squawk Box to discuss the elimination of the U.S. penny from circulation. The interview, which aired on December 30th, asserts Diehl's position that the penny's expense outweighs its use.
"Nobody uses the penny anymore," says Diehl. "If you bend over and pick it up in the street, then you're getting paid less than minimum wage for your trouble."
In response to host Andrew Ross Sorkin's observation that certain economists believe that by taking the penny out of circulation it will distort prices and even press inflation, Diehl points out that this argument "has been used for the last 25 years" and today, only about 25% of transactions are cash-based while the remaining 75% are done electronically. Very few transactions on the market would be affected by the elimination of the penny; in fact, many businesses would round prices down in the name of good customer service.
"My own thought is that competition in the marketplace will discipline companies not to increase prices," states Diehl, a former U.S. Mint Director and current President of U.S. Money Reserve.
Critics say that eliminating the penny is shortsighted as the nickel costs 9.4 cents to make. Made of a copper-nickel mix, the five-cent coin still has a chance to have its composition changed to make it profitable. Meanwhile the penny is beyond hope and the discontinuation of its production will save American taxpayers $105 million annually. Made of 97.5 per cent zinc, the penny's protectors include the private interests that create the coin's blanks as well as the zinc lobby.
About U.S. Money Reserve
Founded in 2001, U.S. Money Reserve is one of the nation's largest private distributors of U.S. government-issued gold, silver and platinum products. Hundreds of thousands of clients across the country rely on U.S. Money Reserve to diversify their assets with physical precious metals, primarily in the form of U.S. gold and silver coins. U.S. Money Reserve's uniquely trained team includes coin research and numismatic professionals equipped with expert market knowledge to find products that offer the highest profit potential for precious metals buyers at every level. U.S. Money Reserve goes above the industry standard to provide superior customer service, with the goal of establishing a long-term relationship with each and every one of its customers. U.S. Money Reserve is based in Austin, Texas and is active in the community, recently raising over $3k for Austin Police Department's Operation Blue Santa.
To learn more or take advantage of the many financial benefits of owning precious metals with gold coins, please call 1-866-Mint-Gold or visit USMoneyReserve.com.
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SOURCE U.S. Money Reserve