I am writing the outsider review for Coin Blog. Before I finish writing the review, I thought I would take a moment to look at one of my favorite Web 1.0 Web sites.
The site Coinflation appeared in 2004 to discuss the way that inflation is reflected in the base metal prices of coins. Most people focus on the price of sexy metals like silver. However, coinflation breaks the mold and discusses the price of all metal.
I find the price of the copper penny to be one of the most fascinating items on the site.
The precious metals (silver and gold) are a favorite asset of investors. The price of silver and gold tend to track investor sentiments.
Copper, on the other hand, is used in every aspect of the economy including plumbing, electronics and construction. So, the price of copper not only tracks inflationary sentiments. The price of copper tracks economic activity. The price of copper pops at the beginning of economic booms. The price often drops before recessions.
From 1909 to June 1982, the US penny contained 2.95 grams of copper. The price of the copper in a penny rose to a penny in the 1970s. In 1974, the US mint considered moving to aluminum coins. In 1982, the mint switched to a copper coated zinc design.
Today, Coinflation reports that the price of a coppery penny is 2.8¢ . I suspect that the price of the copper penny will jump over three cents as the economies of the world rev up in a post pandemic boom; So, I took a picture of four pennies sitting on the back of an envelope to show my back-of-the-envelope calculations.
Comment on The Cent Social Tribe
Cent Social is a new hive tribe that supplements rewards with the CENT token. Apparently the tribe will scale the minting of new tokens in an attempt to target the price of the token on the US penny.
I think that this is a fun idea. However, I worry about US monetary policy. Federal Reserve has been minting new coins at a rapid rate and government spending is a bit out of control. I would not be surprised to see the US dollar suffering inflationary woes in the near future.
When I created the OMA Coin I seriously considered setting its price at the value of the 1982 US copper penny ... as the price of the penny does a wonderful job demonstrating the effect of inflation. I set it to the price of a silver bit instead.
I believe that CENT social is a wonderful addition to Tribe. I love the idea of a tribe that rewards posts in CENTs. The only thing I would have differently is that I would have chosen a different Cent. I would have chosen the 1982 copper cent as currencies based on metals hold value better than those based in fiat.
Review the World
Test: I am writing this post with the centblog.org interface. I hope that it will also show up in the Review the World Community.
Exactly, It's why I now have well over 15 lbs of pre-1996 Canadian Copper pennies. I had a feeling they will be useful someday despite being De-monetized since 2015.
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Canadian coins often filter down to the states; So, I have tube filled with Canadian pennies as well.
I like that Canada added a dodecagonal frame to the design so that it is easier to separate the copper from the copper coated pennies.
Half of the 1982 pennies in the US are copper. The other half is copper coated zinc. One has to weigh each penny to keep the designs separate.
BTW, the coin the US nickel is the coin to collect today. It's melt value is worth more than a nickel.
I wouldn't choose the 1982 cent as that one could be copper or copper coated zinc as they made both that year. Make it a 1981 cent to be sure :).
I weigh all of my 1982 pennies. If it is over 3 grams; it's copper. If it 2.5 grams; it is a copper coated slab of zinc.
I take this stuff seriously.
Of course, I don't take it seriously enough to write down the weights. I am either showing a bunch of copper pennies or a bunch of zinc pennies.
I thought about buying some of those plastic containers that hold 50 pennies. I decided against it because the store asked for more than 50 cents for the container.
Anyway, I weighed all of my 1982 pennies ... dagnabbit.
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Hello there. Thank you for sharing and mentioning. First time I've heard of OMA Token, I'll look into it.
Its supply will be reduced over time to allow the price of Cent Token to approach $0.01. We want to increase liquidity and trading volume as much as possible to ensure price stability. Such methods are already known. But unfortunately there is nothing we can do for the inflation in the US Dollar. For information and updates;
https://peakd.com/cent/@anadolu/cent
The fed has to buy coins at face value from the treasury.
Every dollar of coins in your pocket is a dollar out the people that own the fed's pocket.
https://www.federalreserve.gov/faqs/currency_12771.htm
Help end the fed, hoard change.
That page is on the Federal Reserve Site to emphasize that the Mint is subservient to the Federal Reserve.
The scary thing is that the US Federal Reserve is an independent central bank that exists outside the Constitutional framework.
Prior to the Reserve, the purpose of the mint was to produce coins that had an amounts of silver and gold set by Congress. The mint didn't create money, it simply created coins that held a given amount of money.
Yep, when the federal reserve note goes to zero, coins will still have value as united states money.
I wouldn't think they would go below their melt value.
Pre-1982 pennies, and all nickels, have more metal value than face value.
Quarters and nickles are worth about .06usd in scrap.
I hoard coins because, if you remember, the banks were crying about change not circulating, every dollar of coins in your pocket is a dollar out of the fed's pocket.
If you put it all in nickles and pre-1982 pennies you get some treasury value, too.
Certainly an interesting post and valid observations