"Allow me to explain. First, the penny was shockingly expensive. Pennies were originally made of copper, but since 1982, they've been mostly made of zinc - a cheaper metal. But even zinc isn't that inexpensive these days. So while a penny is worth one cent while in circulation, each coin actually costs 3.69 cents to make, according to the US Mint's 2024 report. That's up from 1.42 cents per penny a decade ago, according to the US Mint."
"That means the US Mint was burning millions of dollars every year just to keep the penny alive. (A US Mint FAQ said estimates put the expected savings at roughly $56 million a year.) Second, pennies are annoying to use. With inflation steadily rising, the buying power of the humble penny has plummeted. Want to buy the hottest sneakers on Wall Street? Hope you brought a bag, because you'll need to hand over 110,000 pennies."
The US penny was retired after 232 years when the Treasury minted its last one-cent coin. Pennies shifted from copper to primarily zinc in 1982, but production costs have risen so each penny now costs 3.69 cents to make, up from 1.42 cents a decade earlier. The Mint was losing millions annually and estimated roughly $56 million in yearly savings from ending production. Inflation has eroded penny purchasing power, making many purchases impractical to pay in pennies (for example, 110,000 pennies for expensive sneakers or about 1,700 pennies for a modest meal). Congress could still intervene on the penny's future.
Read at Business Insider
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