Yuck, These Coins Have Covid!

Government officials can preen and pronounce but the laws of supply and demand ignore every press release. [Gilder's Daily Prophecy] April 06, 2022 [UNSUBSCRIBE]( | [ARCHIVES]( ***SPECIAL MESSAGE FOR GILDER READERS*** [Click here to learn more]( Big news: George just returned from a 2,000-mile round-trip after making a shocking discovery that could dramatically change your financial future. There’s not enough room to unpack the full details here. But let’s just say: [This may be the largest profit opportunity of 2022](. Yuck, These Coins Have Covid! [Jeffrey Tucker]Dear Daily Prophecy Reader, Before we get to our daily issue... There is something urgent I’m asking you to take a look at. One of my colleagues just made a rather interesting discovery regarding the future of “The Cryptocosm.” Specifically, he’s pinpointed a handful of [tiny investment speculations]( that are poised to ride alongside an exponential growth curve over the coming years. (According to his research, he’s projecting a 9,900% industry boom by 2026). George even recorded a short video clip explaining everything. [[You can watch it here.]( It’s not long. Maybe three minutes or so. I hope you take a moment and watch it at your earliest convenience. After you take a look, read on below… You have surely seen the signs. They are all over the country. “Please use exact change. We have a coin shortage. Thank you.” Somehow it just seems inevitable. Coin shortages have long afflicted economies in crisis or otherwise experiencing the throws of some government screw up. In the 18th century, this was a common problem in Britain. Coins were the only money around. The Crown minted only large denominations suitable for lords and merchants. But the workers needed to be paid too! What happened? Private enterprise got involved. As George Selgin has thoroughly documented, button factories got to work to retool their manufacturing to make private money in a variety of forms, if only to serve the cause of local enterprise. And it worked. The results were beautiful and effective. Eventually, of course, government cracked down and re-nationalized coinage again. Nothing new under the sun! What’s with our own coin shortage? What if anything can be done? Reason One: The Lockdowns. The Fed explains this well actually. There is currently an adequate overall amount of coins in the economy. But business and bank closures associated with the COVID-19 pandemic significantly disrupted normal circulation patterns for U.S. coins. This slowed pace of circulation reduced available inventories in some areas of the country during 2020. The Federal Reserve continues to work with the U.S. Mint and others in the industry to keep coins circulating. As a first step, a temporary cap was imposed in June 2020 on the orders depository institutions place for coins with the Federal Reserve to ensure that the supply was fairly distributed. Because coin circulation patterns have not fully returned to pre-pandemic levels, caps were reinstated in May 2021…. Since mid-June of 2020, the U.S. Mint has been operating at full production capacity. In 2020, the Mint produced 14.8 billion coins, a 24 percent increase from the 11.9 billion coins produced in 2019. Now, this is true but typical of a government press statement. It wildly understates the issue. For many months huge swaths of economic activity came to a grinding halt! Also absurdly, people came to believe (thanks to the goofy CDC) that coins had Covid on them and so people did not want to use them or take them. True story. That began the habit an inadvertent coin collecting. Urgent: Website Giving Away Free Crypto Today! Crypto expert, James Altucher, has found a little known website that allows you to collect up to $167 FREE crypto! He’s put together a short [2 minute video clip]( walking you through the easy process on how to get yours. [Click Here to See How to Claim Your Free Crypto]( [Click here to learn more]( Reason Two: Hoarding Once people came to believe their coins had Covid and they weren’t allowed to go anywhere anyway, the long habit of tossing coins into a can grew and became universal. The stores that were open dispensed coins but then coins did not circulate. They ended up in people’s drawers, never to be touched again. There is another factor here too. We’ve seen many ways in which the collapse in the velocity of money has affected the demand for cash. It affected the demand for coinage too. In a scary crisis like the one that began two years ago, people start doing strange things, some rational and some completely irrational. The irrational in this case was stocking up on coinage for fear of the future. Spending in general crashed especially for those people who don’t have bank accounts and credit cards (22% of the public). There is some strange psychological benefit that derives from looking at a big jar full of coins in the midst of high uncertainty. Reason Three: Demonetization In the sequence of events, this low circulation of coins was compounded by rising inflation. Coins are often regarded as little more than an annoyance. People throw pennies in the trash, and nickels are barely noticed. Only quarters get much attention and that’s mostly for laundry machines and car washes. It’s such a sign of our times. We used to have “Dime Stores” and say “penny for your thoughts.” But in the age of inflation, coins are very nearly demonetized. The wild inflation of the last 12 months, growing by the day, has accelerated this trend. Reason Four: Money Shortage It’s truly one of the strangest features of inflationary times is that there is a tendency toward a money shortage. It was certainly true in Weimar Germany. No matter how much money the government prints, people still complain that there is not enough to pay people and give change. We are nowhere near that point yet and may never be. But the coin shortage today is a symptom of this larger problem. Today, industries that serve retail customers are begging the Treasury to circulate more coins. The banks are doing the same. But right now, they are operating at full capacity. So there’s no chance of that. Regardless, this is hardly a crisis of epic proportions but it is a telling sign of our times. It reveals the discoordination, the confusion, the imbalances, and the losses of our times. Every bit of it traces to government malfunction and terrible policy decisions. It is also symbolic of something else. The destruction and near-demonetization of coinage is a story of corruption and decay. You can see it in the course of the 20th century, during which time coins went from having intrinsic value to the point where they are made of the cheapest-possible metal. A dealer I know called them “baloney sandwich coins” but that was before the price of baloney also soared up so high. Now such a thing would be far more valuable than present-day coins. The nickel today is made only of 25% nickel, and the rest is copper. Now have a look at the price of nickel, which is actually massively important in producing the batteries for the electric vehicles that government says is our future. [chart] There is just no escaping economics and the laws that govern it! Government officials can preen and pronounce but the laws of supply and demand ignore every press release. It costs the US Treasury fully 8.5 cents to make 5 cents today! Maybe you know the feeling based on the value of your salary last year compared with this. It’s likely that the composition of the coin will change. To what? Find anything not soaring in price and there’s your candidate. So we can see here that there might be a point to saving your nickels after all. Final note: did you see that the city of Los Angeles has fined a grocery store $160K for selling eggs in 2020 at “illegal prices”? The anti-gouging law requires that stores cannot raise prices above 10% unless justified by costs or production. So the authorities snagged some small store and have now rendered a judgment. Feels like Soviet times. Regards, [Jeffrey Tucker] Jeffrey Tucker How to Ride The $14 Trillion Metaverse Boom Silicon Valley insiders are OBSESSED with [this 9-letter word](. That’s because the Metaverse is set to trigger a projected $14 TRILLION market run. Tech giants like Mark Zuckerberg are already going “all in.” And some companies behind the tech megatrend have enjoyed 5x… 11x… and even 77x gains since 2020. Now, one legendary tech expert is revealing his #1 Metaverse investment for FREE to give you the best chance to profit off this megatrend. [Click here now to see the full story](. [Three founders Publishing]( To end your Gilder's Daily Prophecy e-mail subscription and associated external offers sent from Gilder's Daily Prophecy, feel free to [click here](. If you are having trouble receiving your Gilder's Daily Prophecy subscription, you can ensure its arrival in your mailbox by [whitelisting Gilder's Daily Prophecy](. Gilder's Daily Prophecy is committed to protecting and respecting your privacy. Please read [our Privacy Statement.]( For any further comments or concerns please email us at GildersDailyProphecy@threefounderspublishing.com. Nothing in this e-mail should be considered personalized financial advice. 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