Treasury to Phase Out Penny: A Cost-Saving Move with Price-Rounding Implications
The Treasury Department plans to cease penny production, ending the minting of this historic coin due to escalating production costs. Currently, manufacturing and distribution of a single penny costs approximately 3.7 cents, resulting in significant annual losses for the U.S. Mint. Eliminating penny production is projected to save roughly $56 million annually. This decision follows previous administrations’ considerations of the same issue, driven by the increasing expense of zinc, the penny’s primary metal component.
John Q. Hosedrinker