Coin Modernization Act 2010 Reports 2012
A friendly reminder that the Coin Modernization Act 2010 is to report its findings mid-December 2012. That means, any day now, we could get the update on whether the penny is being eliminated or having a metal composition change. This also goes for the nickel being eliminated or having a change in metal composition.
Most likely, any change in metal composition would be a change to steel. Right now, pennies are made of 97.5% zinc and 2.5% copper. Nickels are 75% copper and 25% nickel. Each costs more than twice its face value to mint.
The Coin Modernization Act of 2010 itself was passed on December 14th, 2010 and was enacted to:
‘provide research and development authority for alternative coinage materials to the Secretary of the Treasury, increase congressional oversight over coin production, and ensure the continuity of certain numismatic items’”
Since its inception, there are many rumors floating around of trials of new compositions for both the penny and nickel, particularly steel. Taking a look at Canada, one can see the penny was made of steel in Canada by the Royal Canadian Mint, and actually eliminated as of this year, 2012.
The Canadian nickel is currently made of a metal composition of 94.5% steel, 3.5% copper, and 2% nickel plating coming in at a weight of 3.95 grams.
So what happens next? Only time will tell. But one thing is certain.
History repeats. The price to buy pennies sky rocketed as soon as the announcement of the Canadian penny elimination came out. Will it happen again in the United States? Perhaps the impending “fiscal cliff” talks will push the change or elimination of the penny and nickel right over the edge. After all, the cost to make the penny is 2.41 cents.
Hindsight may be 20 – 20. But we can all conclude that buying pennies and nickels now creates huge potential gains for you with their respective face value to fall back on.
Buy pennies and buy nickels while you can. If supply drops to zero from a coin denomination elimination, whether you’re a bullion investor or a numismatic coin collector, prices inevitably must go up.
Read the Official Government PDF file for the Coin Modernization Act of 2010: Coin Modernization Act 2010