Certainly it would be hard to logically justify the continued manufacture and use of the US penny from an economic standpoint.

The Penny costs 1.7 cents to produce and is worth only 1/26th of what it used to be worth when Lincoln was President.

In fact it is estimated that the US Mint loses over 70 Million dollars a year producing this denomination of US coinage.

Let us know what you think!  Is the Penny Useless? Should we get rid of it or Keep it?

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By Steve Roach – First published in the Aug. 30, 2010, issue of Coin World

Proof American Eagle gold coins have provided some sparks in the marketplace this past year, but the fast fall in prices over the past several weeks serves as a reminder that what goes up usually comes down.

Some major buyers have stopped buying these and prices have fallen sharply.

For some smaller dealers who were stockpiling the coins in anticipation of continued demand, the change in the market means they have lost substantial money, for now, as the coins are now worth substantially less than what the dealers paid for them.

During July, several large dealers were paying between $1,950 and $2,000 per ounce for Proof American Eagle gold coins in original Mint packaging – the inner and outer boxes, original capsules and original certificate of authenticity with the same year as the coins.

For example, on July 14 a major wholesaler was paying $2,025 per ounce; the dealer’s price gradually declined to $1,900 July 26. Then on July 27 the dealer’s buy price went down to $1,850. On July 29 in the morning the dealer’s buy price was $1,830 and by the afternoon it went to $1,800. On Aug. 3, the price hit $1,750 and then, with orders filled, that dealer stopped buying.

Incidentally, the price of gold on July 26 was $1,189 per ounce and the price on Aug. 3 was $1,184, meaning that the drop in demand was not directly related to the bullion market.

On Aug. 6, when gold increased to $1,205 per ounce, one dealer offered $1,650 per ounce for coins with original packaging, and for coins without the packaging, the price dropped sharply to $1,400 per ounce.

If those who are closest to the market are not buying at the high levels that have characterized these Proof issues for the last year, are they doing this because they know something that we at Coin World don’t know?

On Aug. 6, the U.S. Mint told Coin World that no decision has been made as to whether Proof 2010-W American Eagle 1-ounce gold coins would be struck.

If the U.S. Mint releases Proof American Eagle gold bullion coins in 2010, supplies will increase and less pressure will be placed on the current supply, likely ending the bull market for these issues.

Mr. Roach maintains a website/blog titled The Rare Coin Market Report

The United States Mint will offer America the Beautiful QuartersTM bags and rolls, containing quarter-dollar coins honoring Yosemite National Park in California, beginning at noon Eastern Time (ET) on July 26. The coins, minted at the United States Mint facilities at Denver and at Philadelphia, will be available in two-roll sets priced at $32.95 each and 100-coin bags priced at $35.95 each. The two-roll sets contain one roll each of 40 coins bearing the P and D mint marks, wrapped in distinctive packaging displaying the name “Yosemite,” the abbreviation “CA” for California, the mint of origin and “$10,” the face value of its contents. The canvas 100-coin bags bear tags denoting their mint of origin, “Yosemite,” “CA” and “$25,” the total value of their contents.

Orders will be accepted online at http://www.usmint.gov/catalog or at the toll-free number 1-800-USA-MINT (872-6468). Hearing- and speech-impaired customers with TTY equipment may order by calling 1-888-321-MINT (6468). All domestic orders are assessed a shipping and handling fee of $4.95 each.

The Yosemite National Park quarter is the third release in the United States Mint America the Beautiful Quarters Program, a new multi-year initiative to honor 56 national parks and other sites in each state, the District of Columbia and the five U.S. territories. The coin’s reverse (tails side) design depicts the iconic El Capitan, which rises more than 3,000 feet above the valley floor and is the largest monolith of granite in the world. Inscriptions are YOSEMITE, CALIFORNIA, 2010 and E PLURIBUS UNUM. The reverse image was designed by United States Mint Sculptor-Engraver Joseph Menna and sculpted by United States Mint Sculptor-Engraver Phebe Hemphill.

The coin’s obverse (heads side) design-common to each coin in the series-continues to feature the 1932 portrait of George Washington by John Flanagan, restored to bring out subtle details and the beauty of the original model. Inscriptions are UNITED STATES OF AMERICA, LIBERTY, IN GOD WE TRUST and QUARTER DOLLAR.

The United States Mint, created by Congress in 1792, is the Nation’s sole manufacturer of legal tender coinage. Its primary mission is to produce an adequate volume of circulating coinage for the Nation to conduct its trade and commerce. The United States Mint also produces proof, uncirculated and commemorative coins; Congressional Gold Medals; and silver, gold and platinum bullion coins.

Note: To ensure that all members of the public have fair and equal access to United States Mint products, orders placed prior to the official on-sale date and time of July 26, 2010, noon ET, shall not be deemed accepted by the United States Mint and will not be honored. For more information, please review the United States Mint’s Frequently Asked Questions, Answer ID #175.