What would happen if the US starting making the penny with 0.15 grams of silver?

If obviously distinguishable from current cents, it would become a de facto new coin, value somewhere beteween the current dime and quarter. intrinsic value is everything, if it exceeds face value.

side scenario: what would happen if the US mints started producing silver eagles (31.1 g Ag) with a face value of 50 bucks, rather than 1? think about it.

good question.

At today's silver quote, spot silver is at $0.89 per gram. 0.15 grams of silver is worth about $0.13.

These silver pennies would be removed from circulation and hoarded as fast as they could be produced, since they would have an intrinsic value many times face value.

@wg0z: There are in fact a few countries that do something very similar to that.

Canada has issued several different types of coins over the past two years with a $20 face value and 0.25 troy ounces of pure silver. They are being sold at banks at face value.

Can't scrap pennies or nickels but everything else is OK. But I would agree, that people would hoard them like mad until the restriction is lifted.