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Mikhail Liebenstein

Sterling Now So Debased The Mint Is Swapping To Steel

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http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/7979997/New-steel-5p-and-10p-coins-a-disaster.html

Apparently this will save £8m a year, but personally I think they are worried that the cupronickel melt value will soon be worth more than the coin.

Time to start clipping those 1p and 2p coins.

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to save money they could drop ALL coin.

everything a fiver minumum.

OR...do away with money altogether...so much cheaper paying 3% to a bank for every transaction you do.

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to save money they could drop ALL coin.

everything a fiver minumum.

OR...do away with money altogether...so much cheaper paying 3% to a bank for every transaction you do.

Mongolia was like that no coin in the economy. I managed to get a 1 togrog note which was worth 1/2500th of a £1. I changed a couple thousand roubles at the border and ended up with a brick.

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Current 2ps are already a bit ferromagnetic.

About 16 years a go I visited a client whose office was beneath a big NMR facility. He'd lined up 2ps on his ceiling, edge-on, and they beautifully aligned themselves with the field from the magnet :)

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Mongolia was like that no coin in the economy. I managed to get a 1 togrog note which was worth 1/2500th of a £1. I changed a couple thousand roubles at the border and ended up with a brick.

What did you do with the brick? Is there a brick bank you can save it in? Do you get say 1/25th of a new brick each year as interest?

Carrying bricks around might help the obesity epidemic but as a currency it does have a few practical problems.

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I was going to ask this question when was the UK's low domination coins where going to be worth more in scrap.

It would appear that for some coins already this has been achieved.

Perhaps I should change my tactics with coins and start saving the pre 92 stuff and pay off my mortgage by scrapping the coins instead? :lol::lol:

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What did you do with the brick? Is there a brick bank you can save it in? Do you get say 1/25th of a new brick each year as interest?

Carrying bricks around might help the obesity epidemic but as a currency it does have a few practical problems.

Heh here is some mongolian money I have this 'wad' of cash is worth about 60p

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10p

6.5g total

4.875g copper

1.625g nickel

copper/tonne = 7646 (7.646/kg) 0.496p/gram

nickle/tonne = 21875 (21.875/kg) 1.42p/gram

copper content of a 10p coin = 2.418p

nickle content of a 10p coin = 2.3p

total metal value of a 10p coin = 4.7p

we would need a 50% devaluation against commodities to break even on hoarding at this point

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"Copper" coins have been iron for a number of years! They are magnetic! :huh:

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to save money they could drop ALL coin.

everything a fiver minumum.

OR...do away with money altogether...so much cheaper paying 3% to a bank for every transaction you do.

For low denomination amounts, coin is cheaper than paper because it lasts longer. If anything, they should be introducing a general circulation £5 coin.

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I would be in favour of simply scrapping 1p and 2p coins altogether.

It would force shops to stop that stupid policy of making every price end in 99p to make things appear cheaper!

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http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/7979997/New-steel-5p-and-10p-coins-a-disaster.html

Apparently this will save £8m a year, but personally I think they are worried that the cupronickel melt value will soon be worth more than the coin.

Time to start clipping those 1p and 2p coins.

One of those silly things again - it will save the government £8m per year, but will cost the industries £100m upfront to update the softwares/machines.

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One of those silly things again - it will save the government £8m per year, but will cost the industries £100m upfront to update the softwares/machines.

In HK most of the coin/cash slots have been removed, instead they have been replaced by Octopus card scanners instead. You can link the card to your bank account if you want...

It does still pose the problem of the machine running out of goods though which is a weakpoint of the system.

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What did you do with the brick? Is there a brick bank you can save it in? Do you get say 1/25th of a new brick each year as interest?

No, you put them together and wait for HPI to make your fortune. Course you might have to establish some new currency rules - 20 bricks = 1 window, 2 windows = 1 door, 60 doors = 1 roof; that sort of thing.

db

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The irony of "steeling" the money....

http://www.telegraph...tml#dsq-content

The design of the 5p coin will remain unchanged but they will become magnetic for the first time The changes, which involves the coins being made from a different metal and becoming thicker, have never been officially announced by either the Royal Mint or the Treasury. Some experts have told The Daily Telegraph the change is a "disaster" and they are becoming increasingly alarmed the new coins will fail to work in hundreds of thousands of machines, and that the costs of implementing changes will run to as much as £100 million.

The "silver" 5p and 10p coins have always been made from a metal known as cupronickel, an alloy made of 75 per cent copper, 25 per cent nickel. Indeed, all shillings, which preceded the 5p coin, were made from cupronickel following the end of World War II.

However, from January 1 next year they will be made from steel, with a nickel coating. In most respects they will look identical and weigh the same, but sharp-eye observers will notice they will become 11 per cent thicker, moving from 1.7mm in depth to 1.9mm. They will also become magnetic for the first time.

The change, proposed by the former Labour government, is designed to save the Royal Mint between £7 million and £8 million a year, allowing it to use steel rather than copper, which has surged in price over recent years. Making the cupronickel alloy is also a relatively expensive process.

However, while most shoppers and schoolchildren receiving their pocket money might not notice the difference, nearly all vending machine and parking meters will. Office workers buying a cup of coffee or someone in a rush to park their car could suddenly find their money – perfectly legal tender – is not accepted.

Jonathan Hilder, the chief executive of the Automatic Vending Machine Association, whose members service 500,000 vending machines in Britain, said: "We've told the Treasury and The Royal Mint that this is going to be a disaster, but they haven't taken notice.

"It's meant to be a money saving exercise, but this will cost the vending industry £42 million and the coin machine industry as a whole possibly as much as £100 million."

The problem comes about because tea and chocolate dispensers, as well as parking meters are sophisticated machines designed to detect fraudulent coinage. They test each coin by shape, weight as well as its electromagnetic composition.

All machines will have to have their software updated, and in most instances, need to be recalibrated to recognise both the new coins and the old ones, which will continue to be in circulation for at least a decade.

While the Royal Mint has given the industry with a few samples of the new coins, they have not provided final production versions, making it impossible to start changing the machines. The industry said it does not have enough engineers to undertake the overhaul in less than four months.

Manny Rasores, at the British Parking Association, said: "Most meters don't accept 5p, but they do take 10p. It means every single bit of parking equipment will have to be changed. This is going to be a considerable investment for all the local authorities, and who will ultimately pay for this? It will have to be local taxpayers."

This is the latest time the Royal Mint and the Treasury have come under fire for the state of Britain's coins. In July the Royal Mint admitted there was a record £41 million fake £1 coins in Britain – one in every 36 in circulation, double the proportion compared with ten years ago.

A similar change to the 1p and 2p coins was made in 1992, with those made before that date non-magnetic bronze, while those made afterwards a magnetic copper-plated steel. The vending machine industry said that this change did not cause any problems because most machine never accepted coppers.

Andrew Mills, director of circulating coins at The Royal Mint, said that the general election had slowed down the process of passing on final coins to the vending industry.

He added that the concerns of the industry "have been taken very seriously and from the communications we've had with various sectors we understand that they are keen to facilitate this change both swiftly and cost effectively".

A spokesman for the Treasury said: "The proposal to make new 5p and 10p coins out of nickel-plated steel rather than a cupro-nickel alloy is one of many measures being considered by the Government with a view to reducing the fiscal deficit."

Edited by endgame

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The Royal Mint has no choice. As inflation ever advances, soon the intrinsic value of coins will exceed their face value.

Visit coinflation.com

Anyway the Mint saves money and the vending machine operators will be stimulated by all the extra work upgrading. Great news for the economy. Hoorray!

Edited by Money Spinner

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  • 153 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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