A recent article on PR Newswire covered an interview on CNBC’s Squawk Box with Philp Diehl. He is the president of the precious metal broker known as U.S. Money Reserve. This was an important interview for him because Squawk Box is CNBC’s famous morning program, and he discussed eliminating the penny from circulation. The interview on Squawk Box happened at the end of December, and the topic is something Philp Diehl has been very vocal about. It is his opinion the penny has no use anymore, and it has a cost that outweighs its benefit.
According to the article, there are a group of economists who believe the elimination of the penny will negatively impact prices and inflation. Philip Diehl responded to the observation by pointing out the progression of technology in the market. Only a quarter of all transactions use cash and the rest are done electronically. This means there would be a minimal amount of transactions affected by the possible change. He also believes merchants would end up going down on their prices due to competition in the market.
There is even more criticism of the elimination based on its cost to make versus the nickel. The nickel costs nearly 10 cents to made, but Philip Diehl point out the composition of the nickel can be altered from the copper and nickel mix to still make its production profitable, but he says the penny is quite the opposite. If the penny is eliminated, then it will save around $105 million in taxes. He believes the penny production is being maintained and protected because of special interest groups and lobbyists from the zinc market, and this may be true because the penny is 97.5% zinc.
As the U.S. Money Reserve President, Philip Diehl knows about metal and its value. U.S. Money Reserve is a popular dealer of precious metals. It sells only the highest quality silver, gold and platinum coins. The company only deals with coins and bullion minted in the United States. The financial advisers and brokers at U.S. Money Reserve are all seasoned investors and experts in the precious metal commodity market too. The company was founded in 2001 and it is based out of Austin, Texas. U.S. Money Reserve is known for fostering long relationships with its clients, and it is very active in the local community as well. It is the goal of the company to make every investment profitable.