Pennies Cost More To Produce Than They're Worth
- 10 years ago
Pennies are made of zinc, and the price and demand of the metal has gone up, increasing the cost of penny production.
Currently, it costs more than a penny to produce a single penny.
Each penny costs 1.6 cents to make, meaning the U.S. Mint loses money with each penny made.
In 2013, the US Mint lost $55 million in penny production.
This is because 97% of a penny is comprised of zinc, and currently zinc is costly because of limited supplies and high demand.
In 2014, the supply of zinc is projected to fall short of its demand for the first time since 2007.
President Obama has suggested multiple times that the penny, along with the nickel, be phased out of monetary circulation.
One reason the penny is still in circulation is due to the economic repercussions that would follow its demise.
These include changing prices for products as well as different services, such as municipal parking fees.
Of course, there is also the impact of sales tax on the final price.
Using a different metal to make the coins has been suggested, but a spokesperson for the U.S. Mint has said that it wouldn't make a difference in cost.
While many Americans appear to agree with getting rid of the penny, it seems others are so set in their ways it's nearly impossible to introduce a change in currency, as is seen with dollar coins.
Currently, it costs more than a penny to produce a single penny.
Each penny costs 1.6 cents to make, meaning the U.S. Mint loses money with each penny made.
In 2013, the US Mint lost $55 million in penny production.
This is because 97% of a penny is comprised of zinc, and currently zinc is costly because of limited supplies and high demand.
In 2014, the supply of zinc is projected to fall short of its demand for the first time since 2007.
President Obama has suggested multiple times that the penny, along with the nickel, be phased out of monetary circulation.
One reason the penny is still in circulation is due to the economic repercussions that would follow its demise.
These include changing prices for products as well as different services, such as municipal parking fees.
Of course, there is also the impact of sales tax on the final price.
Using a different metal to make the coins has been suggested, but a spokesperson for the U.S. Mint has said that it wouldn't make a difference in cost.
While many Americans appear to agree with getting rid of the penny, it seems others are so set in their ways it's nearly impossible to introduce a change in currency, as is seen with dollar coins.