![]() Many US citizens believe that the costs of making pennies and nickels are balanced out by the lower costs of producing all of the other coins. To make a quarter, the US government spends around 11.14¢ US and the quarter has a face value of 25¢ US. All of the other coins, like dimes or quarters, cost less to make than to own. The penny isn’t the only coin that costs more to make than to own, the Nickel also has a face value lower than the physical cost of making. This could have a very big impact on the way people do business in the US because phrases like “It only costs a penny” would have no meaning anymore. This coin still remains iconic for the American people so attempts to change its composition have met serious opposition so far.Īnother way of resolving the issue of the cost of making a penny would be to do away with this coin altogether. This could be something that the US government could do in an attempt to lower the cost of making pennies. In an attempt to make the coins cheaper, the European Union used for its currency plastic in the composition of their coins. This has made the prices of the metals used to make a penny rise dramatically in the early 21st century. The cost of metal extraction is much higher than in the past, because of all the new regulations of mining. The other material used is zinc, 97.5% of a penny. Pennies have that distinctive coppery color because they contain 2.5% copper. The parts that are having the biggest impact on the final cost of making a penny are the materials that are used to make it. This was due to a decision at the United States Mint, the agency of the government that prints money and strikes new coinage for the US when the composition of the penny was reconsidered. ![]() The face value of this coin was exceeded by its cost for the first time in 2006. So yes, the coin’s face value is less than its actual value, because it actually costs 2.41¢ US ($0.0241 US Dollars (USD) to be exact) to make each penny. No, We’re not talking about Penny from The Big Bang Theory 0.003 cents will go into the distribution efforts of the Reserve BanksĮven though they are rather expensive, the US Mint still makes a few million pennies every year.0.26 cents will go toward administrative costs.1.8 cents will go towards producing the penny.This, of course, means that its production price is twice the face value of the coin in circulation. The Financial Cost of a PennyĪ report that came out in 2011 from the United States Mint, pointed out that it will cost about 2.1 cents to make a penny. We’ll go over both of these prices in the article below. There are two major costs you should consider when you’re talking about the cost of making pennies (which are also called the Lincoln cents): the financial cost and the environmental expense. Why would the US government spend more to make a penny than it would get from its value? It’s easy: the coin will be used in a lot of transactions, so the cost is worth it when you think about it. It costs more to make a penny than its face value. But how much does it really cost to make it? Without giving it too much thought you’d say it shouldn’t cost more than the actual penny value. If you’re an average working man or woman in the US, you probably know what is a penny and how one looks.
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