The penny has certainly seen better days. At least that is according to Philip Diehl, the president of the US Money Reserve. In an interview on CNBC Squakbox , Diehl adimately campaigned for extinction of the penny from United States currency. Thought there are those who disagree with him for various reasons, Philip Diehl seemed confident that removing the penny is the right thing to do when it comes to money minting decisions.
The US Money Reserve president made the point that the penny cost far more to make than it is actually worth once it reaches the public. So, in affect, we are spending more than a penny to simply make a penny. One of the reasons that the penny has become so unprofitable is because it is made up of over 97% zinc.
It comes as no surprise that those heavily invested in the zinc market are also heavily invested in opposing and campaigning against the removal of the penny from United States coinage. Diehl, however, insists that the over $100 million dollars that would be saved if the penny was taken out of circulation would be worth it.
Philip Diehl also pointed out that the penny is hardly used in common transactions any more. He bagan the interview by pointing out that most people will not even bother to pick up a penny that they see lying on the ground.
He also brriefly argues that given the current economic state of the market place that the penny is no longer useful as contributing currency. Some economists are concerned that the removal of the penny would allow business to round prices up which may then cause an inflation.
He also pointed out that most financial transactions are done via some sort of electronic method. Only approximately 25% of transactions even involve cash and Diehl, the president of the US Money Reserve, insists that keeping the penny in circulation for 25% of financial transactions is simultaneously worthless and expensive.