Written by the Treasureguide for the exclussive use of the Treasure Beaches Report.
President Donald Trump is calling for an end to the production of pennies, arguing that the cost of minting them far exceeds their actual value. ..
"For far too long the United States has minted pennies, which literally cost us more than 2 cents," Trump wrote. "Let's rip the waste out of our great nations budget, even if it's a penny at a time."
The financial burden of the penny has long been debated. According to the US Mint, producing a single penny cost 3.69 cents in 2024, resulting in a loss of $85.3 million on the nearly 3.2 billion pennies produced in fiscal year 2024 alone.
This marks the 19th consecutive year that the unit cost of the penny has exceeded its face value, a phenomenon known as "negative seigniorage."
Trump’s proposal follows similar calls from economists and government officials who have questioned the necessity of continuing to produce the penny.
However, while Trump may want to discontinue the penny, his authority to do so remains uncertain.
The US Mint operates under the authority of Congress, which oversees coin production.
Here is that link.
Trump Wants US Treasury To Stop Making Pennies: Here's Why
Thanks to Mark G. who sent me a link on this stoey. Below is his perspective on that.
2025 will be the last year the penny will be minted, or so it seems. So now when we dig up a penny it will not be, Oh great another penny, it will be GREAT an another penny. I have already been collecting the copper pennies 1981 and below (and some 82s) because by weight they’re worth 3 pennies. There will probably be a run on pennies at the banks and they’ll be gone, but it will decades before they stop coming out of the sand.
I remember Karl von Mueller hoarding copper cents at least four or five decades ago, and recommending that in his treasure hunter's manuals. Karl, which was his pseudnym, was a leading treasure writer back in those days.
You can use the following link to sign up to read his Treasure Hunter's Manual, dated 1972.
There were seven editions or volumes, which you can still easily find to buy online. I think I had most of those at one point. I remember reading them decades ago. Not sure where they are now. Good reading by one of the most prolific early detectorists.
Here are a couple more links for additional articles on the topic of the penny.
Trump orders Treasury to stop making pennies
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I always thought the zinc pennies were big money losers because of their short life span due to corrosion.
Here are a few interesting facts about seigniorage.
- Seigniorage is the difference between the face value of money—both paper bills and coins—and what it costs to produce it.
- Seigniorage may be counted as positive revenue for a government when the money it creates is worth more than it costs to produce.
- In some situations, the production of currency can result in a loss instead of a gain for the government creating the currency.
What Is Seigniorage, and Does It Cause Inflation?
I do know people who hoard the copper cents, but I've heard that kind of hoarding talked about for so many decades I'm skeptical about any very significant return on the investment.
If you think the penny is a big loser, the nickel is worse.
According to a 2023-dated report from the United States Mint, producing a single penny costs about 3.07 cents, while a nickel costs around 11.54 cents.
However, according to the latest United States Mint Annual Report for 2024, unit costs increased for all circulating denominations compared to 2023. Here are those updated figures:
- The penny's unit cost increased by 20.2%, now costing 3.69 cents to produce.
- The nickel's unit cost increased by 19.4%, now costing 13.78 cents to produce.
I think there might be other solutions, such as making the coins in smaller sizes or in different materials. The smaller size probably wouldn't work well. People don't like change, especially to their change. Many changes, perhaps most notably the small dollar coins, haven't been well accepted. But people don't like the big dollar coins either. Maybe rounding prices off to the nearest cent, if people still know how to do rounding. All the businesses will want to round up, but not the other way.
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If the U. S. 1-cent coin is discontinued, it won't be the first U. S. coin or denomination to be discontinued.
Discontinued U.S. circulating coin denominations are:
- Half cents, made of copper, were produced from 1793 to 1857 (shown at top of post.)
- Two-cent denomination copper coins were struck from 1864 to 1873, and the 1864-dated two-cent pieces were the first circulating U.S. coins to have the motto, IN GOD WE TRUST.
- Three-cent denomination coins, some made of silver, later made of nickel, were produced from 1851 to 1889.
- Twenty-cent denomination silver coins were only made from 1875 to 1878.
- Gold coins in denominations of $2.50 ("Quarter Eagle"), $5 ("Half Eagle"), $10 ("Eagle") and $20 ("Double Eagle") were made for circulation at various times from 1795 to 1933. There were also gold $1 denomination coins made from 1849 to 1889.
Here is the link for more about that.
“Pennies” Are Not First USA Coin Denomination Discontinued
Any detectorist would be happy to find a U.S. half cent, two-cent, three-cent or twenty-cent coin, not to mention any of the gold coins.
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| Source: SurfGuru.com. |
Not much surf again. We are getting some negative low tides now along with moderate high tides.
Good hunting,
Treausreguide@comcast.net