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Ron Paul: We Cannot Even Maintain the Zinc Standard

By Rocky Vega|Jul 26, 2010, 7:08 PM|Author's Website

The US Mint has had trouble keeping up with precious metal coin demand for most of this year, and it now appears the investigation into why that’s the case may also consider the economics of penny and nickel production.

The US House Subcommittee on Domestic Monetary Policy has been looking into why there are backlogs at the Mint, especially with proof and uncirculated coins, and what can be done to improve the production process.

For quite some time it’s been easy to find disclaimers such as this on the US Mint website: “Due to the continued, sustained demand for American Eagle Gold Bullion Coins, 2009-dated American Eagle Gold Proof Coins were not produced.” The bullion coins are made available through authorized dealers and not directly through the Mint.

Mineweb has more details:

“[Director of the U.S. Mint Edmond] Moy told the subcommittee uncertainty surrounding traditional investments and inflation concerns ‘drove investor demand for bullion precious metals in all forms to exceptional highs in 2009.’

“As a result, the agency did not mint and issue what Moy called ‘the very popular’ American Eagle One-Ounce Proof Gold and One-Ounce Proof Silver Coins in 2009.

“Although bullion coin demand seemed to be subsiding earlier this year, in May, the Mint experienced an increase in orders for silver bullion coins to over 3.6 million coins. In fiscal year 2009, bullion coins sales reached an all-time high of $1.7 billion, nearly 80% above the sales of fiscal year 2008.”

The Chairman of the Subcommittee, Congressman Melvin Watt (D-NC), is interested in diverting some of the precious metal coin blanks allocated for bullion coin production to supplement needs for numismatic coin production.

Separately, Director Moy also griped that, “with regard to the one-cent and five-cent coins, never before has the nation spent more to mint and issue a circulating coin than its legal value. This problem is needlessly wasting hundreds of millions of dollars.”

Dr. Ron Paul (R-TX) disagrees with the Watt and Moy perspectives because the Mint should not be gaining any additional power to decide the metal makeup of coins in circulation. Here is his language verbatim, again from the Mineweb article:

“We could not maintain the gold standard nor the silver standard. We could not maintain the copper standard, and now we cannot even maintain the zinc standard,” Paul noted. “Paper money inevitably breeds inflation and destroys the value of currency.”

Moy brings up a valid point. The US is spending more to produce pennies and nickels than they are worth. However, Dr. Paul recognizes the greater problem is the eroding value of US legal tender, one that isn’t showing any signs of abating. You can read more details in Mineweb coverage of bullion and coin dealers calling for an investigation into the US coin blanks supply.

http://wallstreetpit.com/37209-ron-paul-we-cannot-even-maint...



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Here's a cool site to check melt prices

http://www.coinflation.com/

Description Denomination Metal Value Metal % of Denomination
1909-1982 Cent (95% copper) * $0.01 $0.0212186 212.18%
1946-2010 Nickel $0.05 $0.0523041 104.60%
1982-2010 Cent (97.5% zinc) * $0.01 $0.0051062 51.06%
1965-2010 Dime $0.10 $0.0186127 18.61%
1965-2010 Quarter $0.25 $0.0465340 18.61%
1971-2010 Half Dollar $0.50 $0.0930693 18.61%
1971-1978 Eisenhower Dollar $1.00 $0.1861394 18.61%
1979-1981, 1999 SBA Dollar $1.00 $0.0664774 6.64%
2000-2010 Sacagawea Dollar $1.00 $0.0558070 5.58%
2007-2010 Presidential Dollar $1.00 $0.0558070 5.58%

Description Denomination Silver Value Silver % of Denomination
1942-1945 Nickel ** $0.05 $1.0240 2048.00%
1916-1945 Mercury Dime $0.10 $1.3165 1316.57%
1946-1964 Roosevelt Dime $0.10 $1.3165 1316.57%
1916-1930 Standing Liberty Quarter $0.25 $3.2914 1316.57%
1932-1964 Washington Quarter $0.25 $3.2914 1316.57%
1916-1947 Half Dollar $0.50 $6.5828 1316.57%
1948-1963 Franklin Half Dollar $0.50 $6.5828 1316.57%
1964 Kennedy Half Dollar $0.50 $6.5828 1316.57%
1965-1970 Half Dollar (40% silver) $0.50 $2.6916 538.33%
1878-1921 Morgan Dollar $1.00 $14.0767 1407.67%
1921-1935 Peace Dollar $1.00 $14.0767 1407.67%
1971-1976 Eisenhower Dollar (40% silver) ** $1.00 $5.7554 575.54%

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passed on.

.

Hear, O Israel: YHUH our God YHUH one. And thou shalt love YHUH thy God with all thine heart, and with all thy soul, and with all thy might.

"bullion coin" ... gotta love that misleading advertising

Gold coins are marked up way over the market price.

But since lots of people refer to the market-priced gold as bullion, the slick scum scammers relabel their gold coins (which aren't even pure gold) as "gold bullion coins".

gotta love that line....zinc standard

pretty much sums up the whole deal

can't maintain the zinc standard

cee cee

Reminds me of Jim Mora: "Playoffs??"

Gold Standard?????

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hilarious....sadly hilarious

lmao (though sadly)

cee cee