(Nexstar) – Weeks after the government’s Department of Efficiency (DOGE) turned his eyes on Penny, President Donald Trump called on the Treasury to stop making new 1-cent coins, claiming that they “waste”. I called it.
The latest report from Mint in the US shows that it costs around 3.69 cents to make a penny. In 2024, Penny (and Nickel) recorded its 19th consecutive year in terms of production costs, with penny (and nickel) “over-face value.”
It is unclear whether Trump wants the country to function properly along with millions of pennies already there. The New York Times magazine reported that it is waiting for about 240 billion pennies to be spent in 2024. – The whole cent coin.
It’s not the first time the US has abolished coins. In 1857, Congress called off the half-cent coin. The US could also turn north for advice.
How much does it cost to make a penny and “lose” your money with other coins?
Canada parted ways with Penny in the early 2010s for the same reasons the US made about it. However, at the time it cost 1.6 cents to produce one new penny, much less than what the US is currently paying for, but enough to spur the government to abolish the coin.
Royal Canadian Mint began collecting national pennies in collaboration with financial institutions and charities, essentially placing the distribution process in reverse, and then Alex Leeves, who was the senior manager of Mint Communications. He spoke to PBS News in 2014.
Armored vehicles, normally tasked with transporting coins and paper, were tasked with bringing billions and billions of pennies to screening facilities. There, different coins are sorted based on metal (older pennies contained more copper, while newer pennies rely on zinc or steel).
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Sorting allows you to melt pennies and extract valuable metals. At the time, Canadian officials estimated that sales of molten metal could lead to $42.5 million, according to PBS news.
Canadians were able to help along the way, taking pennies to coin collectors and banks to exchange them.
Toronto, Ontario – February 4: Patrons of Danforth and Coxwell’s TD Canada Trust will use a free change counting machine to cash out changes. This is the last time you’ll see these pennies. (Stee Brassel/Toronto Star via Getty Images)
Despite the return expected by the Canadian government, residents were sometimes paid pennies in the process. Still, in the first three years of the process, Royal Canada Mint removed at least 6 billion pennies.
If you are currently paying cash in Canada, your purchase will be rounded up to the nearest nickel (a purchase of $19.82 will be $19.80, while $19.83 will be $19.85). Payments by check or debit or credit card are not round.
Australia, Norway, Switzerland and the UK have previously removed the lowest sect coins.
Spoiler Alert: There’s very little reason to start stocking up on pennies. Ten years after Canada stopped building pennys, collectors said the coin’s novel value has not skyrocketed.
Todd Sandham, owner of Ontario’s Coin and Jewelry Shop, told Canada’s Outlet CTV News in 2023 that even those who brought a penny bottle to sell “get a penny and a half for them.” “He said.
How the process of penny pinch unfolds in US zinc lobbyists has long been opposed at the end of the penny, and efforts by Congress to change its size, metal content and existence in recent years have failed. It is unknown what happened.
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Still, in a 2022 report from the Federal Reserve System, authorities warned that, like Canada, they would “reduce or terminate penny production significantly.” “
However, the same report suggests that mint could save $100 million a year by reducing penny production. In the context, that’s less than 1% of $2 trillion Elon Musk, and Kudji claims he can cut “best case outcomes.”
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