The US penny, in circulation for over two centuries, may soon become a thing of the past due to President Donald Trump’s decision to halt production. The high cost of producing pennies, with each coin costing 3.69 cents to produce in fiscal 2024, has led to an $85.3 million loss on penny production that year.
The penny is not the only coin facing production costs issues. The cost of making a nickel in fiscal 2024 was nearly three times its face value, resulting in a $17.7 million loss. Kevin O’Leary, a “Shark Tank” investor, agrees with Trump’s decision, stating that pennies are “useless” and have lost nearly all their practical value due to inflation.
In the past, a penny could buy small everyday items like gum or candy, but today it buys almost nothing on its own. The decline of the penny reflects the US dollar’s diminishing purchasing power, with inflation eroding the value of even nickels and dimes. However, gold remains a reliable store of value, with its price increasing by over 1,000% in the past century.
Investing in gold can be an effective way to combat inflation, as it cannot be printed out of thin air like fiat money. The value of gold is largely unaffected by economic events around the world, making it a safe-haven asset. With online platforms offering fair pricing for precious metals and tax benefits available through a gold IRA, investing in gold can help preserve wealth during times of economic uncertainty.
Source: https://finance.yahoo.com/news/rid-kevin-o-leary-backs-123000859.html