Rising commodity prices may (finally) result in the death of the penny - currently the face value of both the penny and the nickel is less than the value of their material, leading to the possibility that people will collect and then melt them down. Don’t believe it? How about all the stories about thieves who break into houses and steal … (wait for it) … the copper wiring! And the U.S. Mint is taking this seriously enough that last month it issued regulations limiting melting and exporting of the coins.
Anyway, this could mean all those pennies in your piggy bank could be worth five times their current value soon, says an economist at the Federal Reserve Bank of Chicago… The best solution, Francois Velde said, would be to “rebase” the penny by making it worth five cents rather than one cent. Doing so would increase the amount of five-cent coins in circulation and do away with the almost worthless one cent coin. “History shows that when coins are worth melting, they disappear,” Velde wrote.