4 ms·
I don't think this is true. Coins are multi-use. Obviously the government wants to pay as little as possible in production costs, but there isn't any reason tha
by Afton 11y ago
I don't think this is true. Coins are multi-use. Obviously the government wants to pay as little as possible in production costs, but there isn't any reason that the production cost has to be strictly less than the unit-cost of the money.
- hluska 11y agoA relevant quote from the Royal Canadian Mint: In Economic Action Plan 2012, the Government announced it would phase out the penny from Canada's coinage system. The decision to phase out the penny was due to its excessive and rising cost of production relative to face value, the increased accumulation of pennies by Canadians in their households, environmental considerations, and the significant handling costs the penny imposes on retailers, financial institutions and the economy in general. (Source - http://www.mint.ca/store/mint/about-the-mint/phasing-out-the-penny-6900002#.VsTJNkXOfv4 http://www.mint.ca/store/mint/about-the-mint/phasing-out-the...)
- Afton 11y agoHuh, they do say 'relative to face value'. I still think that reasoning is flawed, but I'm not going to argue with the RCM. Thanks for the link!
- deleted 11y ago[deleted]