Why There Is A Coin Shortage

Why There Is A Coin Shortage

The reason why there is a coin shortage is very simple for someone to understand once they connect two facts many already know. There really is no great secret why there is a coin shortage because it is the same reason that has been part of the destruction of every fiat currency in human history.

Gresham’s Law

Gresham’s law is a monetary principle stating that “bad money drives out good.” It is primarily used for consideration and application in currency markets. Gresham’s law was originally based on the composition of minted coins and the value of the precious metals used in them. However, since the abandonment of metallic currency standards, the theory has been applied to the relative stability of different currencies’ value in global markets.

In short, there is a coin shortage because the value of the U.S. dollar has inflated away so much the metal content has become more valuable than the denomination of the coin.

Internal Article Link: True Value of Silver

Melt Value Of A Penny

The United States realized long ago that the melt value of a one-cent coin (erroneously referred to as a penny) was worth more than the denomination face value. This is why in 1982 the U.S. mint stopped using copper in the one-cent coin. Today, if I were to melt down $1.00 of pre-1982 ‘pennies’ it would be worth $2.93. This is classic Gresham’s Law. People have simply been melting the coins down and literally doubled their money… one cent at a time.

Melt Value Of A Nickel

The melt value of a pre-2014 U.S. nickel is 6-cents. This may not seem like much but on a percentage return… an excellent investment.

Dimes and Quarters

The melt value of dimes and quarters would prove to be unprofitable ever since 1964. As we all know this is when silver was no longer added to the coin content.

The U.S. Dollar IS Dieing

The reason why there is a coin shortage is quite simple. Virtually all of the purchasing power of the American dollar has been quietly siphoned off for the last 100 years through inflation. This is quite evident by the simple fact that people will willingly break the law and melt the coins down to simply sell the untraceable bullion anywhere in the world. A virtually untraceable crime.

The U.S. mint announced it will no longer mint ‘pennies‘ in 2023. The value of American money has vanished and the coins no longer are worth what they are made of. We have all said… “it is not worth the paper it is printed on..” and this holds true for coins also. Not worth what they are made out of….. The Romans called it “coin clipping”. Clipping coins was a crime so severe it was punishable by death when the Romans ruled. Today the bankers just walked off with all the loot legally… by the laws the citizens allowed to be enacted way back in 1913. The citizens today have been left with monopoly money and nothing more.

Monopoly Money

I want you to think back to the first time you saw the new U.S. ‘penny’. It felt like toy money from a cheap board game. I had to smile when I realized it WAS on the same value plane as monopoly money because it inherently has the same realized value.

The reason why there is a coin shortage can easily be explained by Gresham’s Law. Why do you think companies like Money Metals Exchange sell BAGS and BAGS of pre-1982 ‘pennies‘? They do not sell pennies they sell BULLION…. by the pound…..

Now you know…..