This year, spotting a lucky penny on the ground is set to become increasingly rare. After being jingled in pockets for 233 years and occasionally found lodged in sofa cushions, an executive order from President Trump has officially halted penny production. The last of these copper-plated coins is being minted as we speak, and by 2026, they will be history.
Why is the penny going away?
The reasoning is quite straightforward. It turns out that producing pennies is more costly than they’re worth. Each penny costs about 3.69 cents to make, which clearly isn’t efficient. In 2024 alone, the expense to circulate Lincoln’s face amounted to around $85 million. While we may admire the president, math simply doesn’t add up in this case.
Going forward, cash transactions will be rounded to the nearest five cents. So, if your total is $10.02, you’ll pay just $10.00. If it’s $10.03, it bumps up to $10.05. This adjustment only applies to cash and won’t affect digital payments made with cards or mobile apps, which will continue to charge precise amounts.
For most Americans, this change might slip by unnoticed. After all, cash is becoming less common. A Federal Reserve survey noted that
Collectors see a chance
For a dedicated group of collectors, the discontinuation of the penny is significant. Many have started hoarding them in anticipation of 2025, convinced that these “rare” coins could someday hold significant value. Coin shops are now experiencing an influx of customers eager to trade or keep these last copper coins.
Experts suggest that most pennies will remain just that: worth one cent. However, for those hoping to stumble upon a valuable coin in their change jar, there’s a glimmer of possibility. Here are a couple of noteworthy examples:
- The 1943 copper Lincoln wheat penny is often regarded as the holy grail of coins. A few were mistakenly minted from copper during World War II, fetching prices as high as $250,000.
- Another valuable coin is the 1969-S double-die penny, which can sell for over $200,000 at auction.
Nonetheless, these are extreme exceptions. As Don Perlman from the Professional Monetist Guild points out, “I have a million-dollar penny, but there’s no million-dollar penny.” Many headlines claiming life-changing fortunes from a penny are usually just bait for clicks.
How to determine if a penny is worth more than a cent
If you’ve got an old jar of pennies sitting around, it might be worth dedicating an afternoon to check them out… you could be in for a surprise. If you come across something out of the ordinary, consider these steps:
- First, consult trustworthy resources to assess the value of your coins. “The Red Book” is a solid reference for determining if a wheat penny is worth more than mere pocket change.
- Next, if you think you possess something special, consider having your coins graded by a professional service such as CAC, NGC, or PCGS. Just like evaluating gemstones, grading will give you a clearer idea of the true worth of your coin.
This approach helps ensure you don’t fall victim to counterfeit coins or overpay for something that’s simply average.
America follows global trends
If the loss of the penny seems surprising, keep in mind that other countries have already taken similar steps. Canada ceased penny production in 2013, and nations like Australia and New Zealand ditched their smallest coins decades ago. Countries such as Sweden and the Netherlands have also shown that life can function just fine without these low-value coins.
The end of the penny might just be the start of more changes. The nickel is also more costly to produce than its nominal value, and economists suspect it could be next on the chopping block. Should that happen, be ready for further adjustments in cash transactions.
