WHAT IS CAUSING THE RISE IN COINAGE METALS COSTS? Public Deposited
The E-Sylum: Volume 10, Number 31, August 5, 2007, Article 20
WHAT IS CAUSING THE RISE IN COINAGE METALS COSTS?
Dick Johnson writes: "It may be obvious to some, but there
are two reasons for rising metal costs driving up the cost to
manufacture coins, not just for the United States, but for all
coin-issuing countries. It is just a fact the United States
has not attacked the problem head on (at least Treasury Department
officials remain extremely closed-mouthed about any plans they
may have)."Major reasons for the rising costs are labor strikes in
metal producing areas of the world, like Chile, Peru and
other areas. This is causing a shortage at a time of increasing
demand. Labor problems can be solved, however."Of far more critical influence is China. Their rising economy
is causing a tremendous demand for products, all kinds of
products, particularly those with metal components. China is
the culprit, their demand for metal is unfettered, forcing up
metal prices."With rising world metal prices this is having an effect for
scrap metal dealers everywhere (they now called themselves
in the metal recycling business). Copper, for example -- the
most prominent component in coins worldwide -- has risen in
cost from 60c a pound as recently as June 1999, to now around
$3.50 a pound."And this is leading to theft of copper, as in pipes, roofing,
and appliances, particularly in America. The travails of the
metal recyclers are increasing. An interesting article was
published this week in the Asbury Park Press of a New Jersey
metal dealer. The law against melting cents and nickels is
prominent in his mind. He refuses to buy coins for their
metal content."To read the complete article, see:
Complete Article- 2007-08-05
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