Gold Price $2900+ - Trump Kills The US Penny (140x Dollar Collapse!)

Summary

In this video, Smart Silver Stacker discusses the significant loss of purchasing power of the US dollar, highlighted by the rise of gold prices above $2900 and President Trump's call to stop minting pennies. The video compares the historical value of coins, illustrating how the dollar has lost 140 times its value over the last century. The speaker reflects on the implications of currency devaluation, the rising costs of producing coins, and speculates on the future of US currency, suggesting the eventual shift toward precious metals like gold and silver as a hedge against inflation.

Takeaways

• 😀 Gold prices reached a historic high above $2900, highlighting the growing devaluation of the US dollar.
• 😀 President Donald Trump called for an end to the minting of pennies due to their high production cost exceeding their face value.
• 😀 The cost to produce a penny now exceeds two cents, which was the result of debasing its composition from copper to zinc in 1982.
• 😀 Historically, the US had circulating gold coins, like the St. Gaudens Double Eagle, which had a face value of $20 and contained 0.9675 troy ounces of gold.
• 😀 A 1924 $20 gold coin, equivalent to 2,000 pennies, was worth nearly half a troy ounce of gold back then, equivalent to a $140 penny in today's market.
• 😀 The purchasing power of the US dollar has been severely diminished over the last century, devalued by a factor of 140.
• 😀 The future of US currency could involve eliminating small coins like pennies and possibly even higher denominations like nickels, due to their production costs.
• 😀 Nickels are already more expensive to produce than their face value, potentially making them the next target for discontinuation or redesign.
• 😀 There is speculation that the US may eventually revalue its currency, reducing the value of current dollar bills by chopping off zeros, similar to what happened in countries with hyperinflation like Venezuela or Zimbabwe.
• 😀 Despite gold hitting all-time highs, opportunities still exist to purchase gold coins, like the St. Gaudens Double Eagle, at only a 2% premium over spot price.
• 😀 The speaker suggests that silver, which is currently undervalued compared to gold, might experience a significant price surge in the future as the precious metals bull market continues.

Q & A

What two developments are discussed in the video?

The two developments discussed are the spot price of gold rising above $2900 for the first time in history, and President Donald Trump calling for an end to the minting of U.S. penny coins.

Why does President Trump want to stop the production of pennies?

President Trump argues that it is wasteful to continue producing pennies, as they cost more than 2 cents each to mint, and he wants to eliminate this waste from the nation's budget.

How did the composition of the penny change in the 1980s?

In 1982, the U.S. switched the penny's composition from primarily copper to a copper-coated zinc token in an effort to reduce production costs.

How much does it cost to produce a zinc penny today?

Today, it costs more than 2 cents to produce a zinc penny, which is more than its face value.

What is the value comparison between a 1924 St. Gaudens Double Eagle coin and pennies?

A 1924 St. Gaudens Double Eagle coin, which had a face value of $20, contained 9675 troy ounces of gold, equivalent to 2,000 pennies. This illustrates how much the value of the U.S. dollar has declined over time.

What is the worth of a penny in terms of gold in 1924?

In 1924, a penny was worth the equivalent of 0.48 troy ounces of gold based on the value of the $20 St. Gaudens coin.

How does the current value of gold compare to the historical value of the penny?

With the current gold price over $2,900 per ounce, a penny today would be worth around $140, showing a massive loss of purchasing power in the U.S. dollar.

What historical event led to the 1943 steel penny?

The 1943 steel penny was produced due to copper being needed for the war effort during World War II.

What might happen to U.S. coins in the future as the dollar continues to devalue?

As the dollar continues to lose value, it is possible that smaller coins like pennies, nickels, dimes, and quarters may be eliminated, replaced with alternative forms, or gradually become less meaningful in value.

What does the speaker suggest as a potential future scenario for U.S. currency?

The speaker suggests that the U.S. might undergo a currency revaluation, where they reduce the number of zeros on dollar bills, similar to what occurred in countries like Venezuela and Zimbabwe.