Daily Dose of Optimism

US Coinage Hoard/Spend Index: Value of Metal in US Coins

Times were, when kids asked their parents why nickels were called "nickels," they got an answer about how the coin was once made out of the metal nickel, even though they are now made primarily from copper.

You will soon know how old you are when you tell your kids about buying anything with pennies, nickels, quarters, or dimes, and they ask you what the hell a penny, nickel, quarter or dime is, as that type of money won't exist anymore. Then, you will remember that metallic currencies were phased out around 2015 when the price of the metals used to make those coins was prohibitively expensive, and you will kick yourself for being old.

I have written for about the value of the zinc in pennies, and said that the metal in a penny would be worth more than a penny when zinc hit about $3,200 per metric ton. (Turns out that figure wasn't exactly correct - new calculations say, depending on the price of copper, that this would be around $3,900 per metric ton.)

I now realize that we are probably just a few years away from a scenario where the US decides that all money is either paper or electronic. Why would I say this, after calculating for myself the prices of just a few coins?

Take a look at the US Coinage "Hoard/Spend Index" below (a DDO exclusive!). Coins to hoard have a metal value greater than the currency value. Coins to spend have a metal value less than the currency value.

Conclusion? Dimes and quarters still have a few years left as coins. However, pennies and nickels have either outlived their usefulness, or are close to it. - Ed

Note: I am not factoring in the cost of producing the coins, and only have pricing for high grade metals. Metal prices:

The US Government, PowerPoint, and Other Disasters

I've adhered to a "no politics" rule on the DDO for at least the last six months, but I figure I will deviate from that rule on occasion going forward, simply because I need an occasional outlet for non-business ideas. The piece below was written in December 2005, and I figure it is about as true now as it was when I wrote it, so enjoy. - Ed

Bush admits:

"It is true that much of the intelligence turned out to be wrong. As president I am responsible for the decision to go into Iraq," the president told a foreign policy forum on the eve of elections to establish Iraq's first permanent, democratically elected government. "And I'm also responsible for fixing what went wrong by reforming our intelligence capabilities. And we're doing just that."  Link

I was pretty disappointed to hear Bush actually concede this, as I expect many Americans will be when this concept is fully digested in the national psyche. I would just like to point out some of the things he's not saying:

• "The weapons slipped over the border."
• "The weapons are there, but we just can't find them yet."
• "Weapons or no, Saddam was a key part of 9-11, and here's the proof we found."

In building the case for war, Bush & Co could have been honest and focused on issues other than WMD. Unfortunately, I think it is a safe assumption that in the absence of WMD, Americans probably would not want to give up the lives of our soldiers to bring "democracy" to Iraq.