But the nickel’s negative Seigniorage is even worse than the pennies.
Each nickel costs the US mint 10 cents to produce, also, some of us are pretty attached to pennies for whatever reason, nostalgia, and then those collectors.
And people, if they see a penny on the sidewalk, they’ll pick it up and think: it is my lucky day!
Another scenario is that, without pennies, merchants, instead of charging 4.98, might round up the price to an even five dollars.
So consumer goods would become slightly more expensive, but on the other hand, some cash transactions would be more convenient for consumers.
And as I said, the government would save money if pennies were eliminated.
But wouldn’t the copper industry suffer financially if the US government stopped buying copper to make pennies?
But how much copper do pennies actually contain?
How much...Oh, got it, right.
So what else comes to mind when you think about copper? What else is copper used for?
I know that copper can be shaped into all sorts of things: sheets, tubing, my cousin’s house has a copper roof.
Yes, like gold and silver, copper is extremely malleable, but it’s not a precious metal, it’s far less expensive than gold or silver.
It’s also a superb conductor of electricity so you can stretch it into wires which go into appliances and even car motors.
Copper also has superior alloying properties, it’s...you know, when it’s combined with other metals.