The home reservoir where many people stash bottles, cups, and various containers could see a shift in utility once the US Treasury halts production of pennies next year.
The Treasury has confirmed it issued a final order for penny blanks. This decision was first reported by the Wall Street Journal earlier this week.
Pennies, which officially date back 233 years, were among the initial coins minted in 1793, playing a significant role in the early days of the US Mint.
Plans to cease penny production surfaced just three months after former President Trump remarked that making the coin was a waste since the production cost exceeded its value. He stated through social media that it was “a huge waste!”
The government expects to save around $56 million annually with this change. Over the last decade, the cost to produce a penny has risen from 1.3 cents to 3.69 cents in 2024, according to the Treasury Department.
Interestingly, creating a $1 bill is actually less expensive than minting pennies. With 97.5% zinc and 2.5% copper, pennies require a smelting process. It costs the Treasury approximately 3.2 cents to produce and print a dollar bill.
Caroline Turco, an assistant curator at the Money Museum in Colorado Springs, mentioned that the penny would join other eliminated US currency denominations, such as the half-cent, two-cent, and three-cent coins issued in the 19th century.
“We’ve retired various coins mainly because they either aren’t frequently used or have become too costly to produce,” she noted.
While production will cease, pennies will still remain legal tender, allowing their use for deposits and transactions.
However, the gradual removal of pennies from circulation may influence product pricing. For instance, some businesses might need to round prices to the nearest nickel since that’s the lowest coin still in circulation.
According to the US Mint’s website, the first penny featured a female figure symbolizing freedom and circulated in 1793. President Lincoln made his debut on the coin when the Mint marked his centennial in 1909.
Over time, the size and materials of the penny have changed, transitioning from pure copper to a copper-zinc alloy. Currently, around 114 billion pennies are in circulation, but they’re reportedly not widely used.
Proponents of eliminating the penny highlight potential savings for the Mint, faster cash transactions, and the fact that many other nations have already phased out similar coins.
For example, Canada stopped minting pennies in 2012, and the Department of Defense ceased penny circulation at overseas bases back in 1980.
There is a possibility that the value of pennies might increase following their discontinuation, though, according to Turco, this could take years.
“I think collectors still appreciate having them,” she remarked. “But I don’t expect their value to spike immediately.”
