The saying “a penny for your thoughts” just got hit with inflation. Seeing as how it now costs 3.69 cents to make a single penny, the U.S. Department of the Treasury announced in February that it will discontinue production. The remaining new pennies will enter circulation early next year.
The U.S. Mint estimates that not making pennies will save $56 million in material costs. Up until 1982, pennies were made mostly of copper; because of rising costs, they now contain mostly zinc with copper plating.
But don’t look for the penny to disappear altogether. The U.S. Mint made about 3.2 billion pennies last year alone, and there are an estimated 114 billion in circulation. Plus, they are not being taken out of circulation. So don’t count on them to become collector’s items, either.
Experts say that just like there was so much hype over the value of the so-called “wheat pennies,” produced from 1909 to 1958 and featuring two wheat stalks on the reverse side, there will be similar excitement over those minted in 2025.
Sure, some pennies have value, but it’s usually due to when they were minted, minting errors or the condition of the coin.
If you are one of those who hoards pennies, then you are not alone. The Federal Reserve figures the median household has $60 to $90 in coins at home.
As a side note, it costs 13.78 cents to produce a nickel, so the demise of that coin may not be far behind.
Visit home.treasury.gov