Have you ever heard that it costs more to make a penny than it’s worth? That’s actually true!
According to the US Currency budget report, the increase in the price for base metals (copper, nickel and zinc) climbed from five-year lows, reaching near record highs.
What’s all this mean?
It means that the cost to make pennies and other coins has increased significantly. Just take a look at the increase in the cost of the base metals from 2009 to 2010.
- Copper – Up 56.9%
- Zinc – Up 52.4%
- Nickel – Up 55.8%
The 2010 figures are the most recent provided by the US Mint budget.
The cost to produce a penny: $0.0179
The cost to produce a nickel: $0.0922
The cost to make a penny and a nickel are a little over eleven cents for the two of them. That’s right, the US Mint pays $0.11 to creat $0.06 worth of money when they stamp out a penny and a nickel. That math doesn’t add up… If the costs of these metals continue to increase, it’s only a matter of time until a decision is made to cut these coins.
What do you think? Should we continue to create the penny and nickel even though the US Mint loses money on them?