*Update: While we are confident that it will not be long until the Treasury takes the penny out of circulation and at least debases the nickel, the author of this story has apparently issued a retraction to the story.
Our thanks to SD reader Mark for alerting us.
Is it time to stack copper and nickel as well as silver?
Timothy Geithner reportedly has announced plans by the US Treasury to completely remove both the penny and the nickel from circulation beginning in January 2013, with plans to potentially also remove the dime from circulation in 2014.
Will the American people finally wake up to the currency debasement of the US dollar when 3 of the 4 main US coins in circulation are no longer minted due to currency devaluation?
Earlier this week Canada announced that they would be phasing out their penny coin. On the heels of the Canadian announcement, U.S. Treasury Secretary, Tim Giethner stated in a press conference today that the U.S. Mint will remove the penny and nickel coins from circulation, starting early in January 2013.
Due to the rising costs of zinc and production related expenses, the U.S. Mint now spends 4.8 cents to make a penny. And the cost of copper and nickel have inflated the cost to create a nickel coin to 16.2 cents.
In 2011, the U.S. mint made over 4.9 billion pennies, at a cost of $118 million to make. That is $236 million to produce only $49 million worth of pennies, a loss of $187 million in minting costs. Minting the nickel coin also represents a significant loss in revenue.
By comparison, the dime (which costs 9.2 cents to mint) and the quarter (21.31 cents) are economically more feasible, and will continue in circulation through 2013. However, according to Giethner, the dime may be in jeopardy as early as 2014.