US Money Reserve President Philip Diehl recently visited the Squawk Box on CNBC to discuss the penny. The frank discussion he had with the panel looked into reasons why people want to keep the penny even though experience tells a different story. Philip was the director of the US Mint at one time, and this article explains his understanding of the penny problem.
#1: The Penny Is Terribly Expensive
The penny is terribly expensive to make, but this is an issue most Americans do not understand. The penny is worth one US cent, but the penny costs 1.8 US cents to produce. Philip tried to help eliminate the penny more than once, but he was foiled by the penny lobby. He believes in investment in coins, but he does not believe in throwing money at a problem.
#2: The US Money Reserve Promotes Wise Coin Investment
Philip currently runs the US Money Reserve, and he uses his position to promote wise coin investment. The US Money Reserve creates gold coins for investment purposes, and his company believes that a coin cannot outpace its own value.
#3: What Is The Penny Lobby?
The penny lobby consists of suppliers for the plates to press the pennies, the zinc suppliers who help produce the coins and the machinists who work on the presses that make the coins. These three very strong groups have been able to keep the penny around even the US government loses nearly all the value of every penny as soon as it is produced. The penny lobby will continue to fight for the penny until a government official chooses to push the penny out, and Philip does not see an end to the fight.
Philip Diehl knows that the fight for the penny will come to an end at some point, but he is no longer in control of that process. He is focuses on wise coin investments through the US Money Reserve, and he is consistently creating new gold coin designs for his company that provide investors with the best choices possible. A beautiful gold coin will remain valuable for a long time, and Philip wants investors to have a simpler way to save their money for the future.