Forget the penny. The U.S. government spends $32 to make a $1 Silver Eagle and a staggering $2,900 to mint a $50 Gold Eagle. What does that tell you about the value of the paper dollar?
These costs highlight the intrinsic value of precious metals compared to paper currency. Back in the day, a couple of silver dollars could fill a shopping cart with groceries. Today, the purchasing power of the dollar has decreased significantly.
Recently, President Trump announced a plan to stop making pennies, which cost 3 cents each to produce. This move is part of a broader effort to cut wasteful government spending and address the rising costs of metal1.
This brings back the debate on the gold standard—a system where currency value is directly linked to gold. Some believe that returning to such a standard could help achieve zero inflation and stabilize the economy.
So, keep stacking those precious metals. As the costs to produce these coins continue to rise, their inherent value becomes even clearer.
Sources:
https://www.usmint.gov/learn/coin-and-medal-programs/american-eagle