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I got a dumb question about Zincolns.........

OldEastsideOldEastside Posts: 4,602 ✭✭✭✭✭
in Precious Metals
How does the loss rate affect our economy and Just where does that lost money go ?

Now I'm NOT talking about HOW MUCH IT COST's TO PRODUCE THEM or whether or
not we need them...........I'm asking where does this money go when it ceases to exist.

For example, when I moved last year I had cleaned out a couple of cars, that I basically
junked and I trashed 6 to 8 bucks worth of Zincolns because they were corroded and I
just didn't want to deal with them, I did the same with Zincolns that were here and there
around the house that I had lived in for twenty years, say another 20 bucks worth.

Or say theres a fire and 10,000 in cash burns up...........Where does this money GO ?

And after 31 years of minting Zincolns, and the survival rate of these coins.

It makes me wonder where all this money Go's.

Steve
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Comments

  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Or say theres a fire and 10,000 in cash burns up...........Where does this money GO ? >>



    It would concentrate the remaining money supply and in a minute way strengthen the currency value.

    *not measurable of course.
  • OldEastsideOldEastside Posts: 4,602 ✭✭✭✭✭


    << <i>

    << <i>Or say theres a fire and 10,000 in cash burns up...........Where does this money GO ? >>



    It would concentrate the remaining money supply and in a minute way strengthen the currency value.

    *not measurable of course. >>



    Drop a couple of zero's of Zincoln mintages each year and figure in the survival rate of these coins.................I think theres a lot of money on that table

    Steve
    Promote the Hobby
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭
    Half a century ago the coins were virtually worthless. Today they are truly worthless.

    Time to dump them. I wouldn't miss the nickel or dime either.
  • drwstr123drwstr123 Posts: 7,036 ✭✭✭✭✭


    << <i>Half a century ago the coins were virtually worthless. Today they are truly worthless.

    Time to dump them. I wouldn't miss the nickel or dime either. >>



    It's necessary to keep them to produce a facade of financial stability.
  • BAJJERFANBAJJERFAN Posts: 31,070 ✭✭✭✭✭


    << <i>How does the loss rate affect our economy and Just where does that lost money go ?

    Now I'm NOT talking about HOW MUCH IT COST's TO PRODUCE THEM or whether or
    not we need them...........I'm asking where does this money go when it ceases to exist.

    For example, when I moved last year I had cleaned out a couple of cars, that I basically
    junked and I trashed 6 to 8 bucks worth of Zincolns because they were corroded and I
    just didn't want to deal with them, I did the same with Zincolns that were here and there
    around the house that I had lived in for twenty years, say another 20 bucks worth.

    Or say theres a fire and 10,000 in cash burns up...........Where does this money GO ?

    And after 31 years of minting Zincolns, and the survival rate of these coins.

    It makes me wonder where all this money Go's.

    Steve >>



    It's most likely considered to be in circulation. No doubt that some gets lost or destroyed every year, but there is currently no good way to track it once it leaves the FRS. Generally, there isn't enough coin or cash removed from circulation to have a noticeable effect on supply.
    theknowitalltroll;
  • derrybderryb Posts: 36,711 ✭✭✭✭✭
    Destroyed money is only a loss to its last owner. Everyone else got something for it. The same thing as having a wallet full of dollars that are suddenly no longer accepted, by anyone.

    My turn: Why do gas stations continue to price gas in tenths of a penny?

    "Who needs risk management when you’ve got guaranteed bailouts? - Jesse Felder

  • SaorAlbaSaorAlba Posts: 7,531 ✭✭✭✭✭


    << <i>

    My turn: Why do gas stations continue to price gas in tenths of a penny? >>



    I have thought at one time of cutting a penny into tenths and paying 9/10ths of a penny for each gallon.
    In memory of my kitty Seryozha 14.2.1996 ~ 13.9.2016 and Shadow 3.4.2015 - 16.4.21
  • mikliamiklia Posts: 1,295 ✭✭✭
    the loss rate is calculated into the budget, but figuring in the amount of USD that is printed and never returns to the country thanks to its use on international black markets has traditionally been a far more profitable way for the fed to create balance sheet value.
  • BAJJERFANBAJJERFAN Posts: 31,070 ✭✭✭✭✭


    << <i>Destroyed money is only a loss to its last owner. Everyone else got something for it. The same thing as having a wallet full of dollars that are suddenly no longer accepted, by anyone.

    My turn: Why do gas stations continue to price gas in tenths of a penny? >>



    Psychological, maybe in the same way that a computer might be $399.95 instead of $400. Or just an old tradition that's failed to die. If I was paying by cash or check, I always tried to stop at an even dollar amount.
    theknowitalltroll;
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    A lot of the coins are found by metal detectorists, cleaned, and put back into circulation - of course, that is only a minute fraction of what is 'lost'..image Cheers, RickO
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Destroyed money is only a loss to its last owner. Everyone else got something for it. The same thing as having a wallet full of dollars that are suddenly no longer accepted, by anyone.

    My turn: Why do gas stations continue to price gas in tenths of a penny? >>



    Still rather relevant as the margin on a gallon of gas is about 6 cents to the station owner.
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