Have you seen any of the new Lincoln pennies in circulation — either of the two designs that feature a log cabin and Abraham Lincoln reading on a log? Neither have I. And I don’t expect to see either of the other two designs when they are released later this year.

Coin dealers and collectors are hoarding the pennies by the roll and selling them for exorbitant premiums over face value. Earlier this month when the second design was released, people stood in long lines in Indiana and Washington, D.C., for the chance to buy the pennies. In the nation’s capital, the supply of rolls lasted only 30 minutes.

One policy advocate is blaming the U.S. Mint for the lack of supply when the public is demanding so many pennies, and he wants you and me to yell at Congress. From Numismatic News:

The failure of the United States to put enough of the special cents issued to commemorate [Lincoln] has led to price gouging by the Mint, which can command 10 times face value for coinage, and by dealers commanding 100 times face value in the marketplace. …

How much are we to suffer? Not everyone enjoys the special treatment Congress gets with their special credit union obtaining the precious coins for distribution. Are they perhaps in on the effort that has us collectors paying ridiculously high margins for circulating coins?

Let’s face it folks, the Mint is in trouble! They can’t secure the planchets to meet the demand for bullion silver and gold collector coins, and now circulating coins are suffering. In the race to gain levels of seigniorage like the Post Office (people buying coins to put away and not use), they have created a monster and we collectors are paying huge gains to a few connected individuals.

I’m as disappointed as anyone that I don’t have any new Lincoln pennies at face value for my collection yet, but I’m not inclined to start screaming at Congress. It’s the free market at work. If people are willing to pay outrageous premiums to get the new pennies in their prime, and if dealers are willing to speculate that they will maintain their value, more power to all involved.

Eventually people will realize that their 2009 penny hordes will be virtually worthless over the long run because the Mint produced hundreds of millions of them, and there will be a glut on the market. That’s when I’ll buy.