The Waterkooler

That is an issue the United States Mint could soon face if the price of metals keeps rising. Already it costs the mint well more than a cent to make a penny.

This week the cost of the metals in a penny rose above 0.8 cents, more than twice the value of last fall. Because the government spends at least another six-tenths of a cent — above and beyond the cost of the metal — to make each penny, it will lose nearly half a cent on each new one it mints.

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"What is really new in the commodity world is the extent to which hard commodities have been converted to financial assets through exchange-traded funds and hedge funds," said Ed Yardeni, the chief investment strategist of Oak Associates.

"In the late 90's," Mr. Yardeni added, "my hedge fund friends were all experts in technology. Now all they talk about is zinc, lead and oil. There is a lot of money that has poured into these areas."

That may mean that a bubble is brewing, but Mr. Yardeni thinks the run is not yet over.

Gotta love those day-traders!