Former US Mint director on money, gold
It’s the top of an period for America’s smallest coin.
Treasury Secretary Scott Bessent will strike the nation’s ultimate penny in a ceremonial minting on Wednesday, marking the official finish of penny manufacturing.
The penny has been a part of the U.S. forex because the very starting. It was first licensed underneath the Coinage Act of 1792.
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It prices practically 4 pennies to make one penny, in line with Treasury’s current estimates. (Justin Sullivan/Getty Photos)
For greater than 230 years, the penny has circulated via American piggy banks and money registers.
However rising manufacturing prices – every penny now prices practically 4 cents to make – and shifts in shopper conduct, such because the rise of digital funds, have made it impractical to maintain producing them.
In February, President Donald Trump introduced plans to halt the manufacturing of pennies.
“For much too lengthy, the USA has minted pennies which accurately price us greater than 2 cents,” Trump wrote on Reality Social. “That is so wasteful! I’ve instructed my Secretary of the U.S. Treasury to cease producing new pennies.”
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A employee inspects completed penny cash at the USA Mint in Denver, Colorado. (Jim West/UCG/Common Photos Group/Getty Photos)
Annually, pennies account for a major share of U.S. coin manufacturing. In fiscal 12 months 2024, they made up 57% of the Mint’s 5.61 billion circulating cash.
However with an estimated 300 billion pennies already in existence, way over wanted, the Treasury decided it was time to cease minting new ones.
The transfer is predicted to save lots of roughly $56 million per 12 months in manufacturing prices.
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Halting penny manufacturing is predicted to save lots of roughly $56 million per 12 months in prices. (Andrew Harrer/Bloomberg/Getty Photos)
Pennies can nonetheless be used to make purchases, be deposited at banks or stored in collections. They aren’t being banned or devalued, the federal government simply gained’t be minting new ones.
Pennies are at present minted on the Philadelphia and Denver services, and every coin can flow into for about 30 years earlier than sporting out, that means there shall be no scarcity of them anytime quickly.