“US ends 232-year penny production: prices will now be rounded to 5 centsUS Treasurer Brandon Beach minted the last five one-cent coins, ending 232 years of penny production. This decision was made due
to rising production costs and changing consumer habits.
”, — write: unn.ua
DetailsThis was done on Wednesday by US Treasurer Brandon Beach, who visited the Philadelphia Mint.
In February, US President Donald Trump instructed the Treasury Department to cease what he called the “wasteful” minting of pennies, prompting gas stations, fast-food chains, and large retail chains to adjust prices and round up amounts for cash transactions.
The US Treasury Department stated that rising production costs and rapidly changing consumer habits and technologies have made penny production “financially unviable” and unnecessary, noting that the cost of producing one penny is 3.69 cents, whereas ten years ago it was 1.42 cents.
The production of circulating pennies ceased several months ago, Mint officials said, but an unspecified number of additional one-cent coins, marked with the Omega symbol denoting the last, were minted for auction in December.
The five pennies minted on Wednesday will be part of this batch, said Robert Kurzina, superintendent of the Philadelphia Mint. Details of the auction will be released soon, he added. Technically, these pennies can be used in circulation, unlike collectible coins, which are shinier and made differently.
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The Philadelphia Mint minted 232 Omega-stamped coins for auction: one for each year of penny issuance, and three for display at the Treasury and other institutions, a source familiar with the situation said. 235 gold pennies were also minted, the source added.
It is unclear whether additional pennies were minted for auction at the Denver Mint, where pennies were also minted.
Acting US Mint Director Kristie McNally said that the first and last of the coins put up for auction could sell for around $100,000. All proceeds will go to fund the Mint’s operations, with the remainder transferred to the US Treasury, she added.
The cessation of penny production is expected to save the US Mint approximately $56 million per year, the Treasury said. Pennies will remain legal tender, and an estimated 300 billion are in circulation, which is “significantly more than needed for commerce,” the Treasury said.
“It’s sad to see the penny go, but it was inevitable given rising prices,” said American University professor Gabriel Mathy, adding that the iconic American coin “will be around for a while, though people may start collecting pennies.”
The US joins other countries, including Canada, Australia, Ireland, and New Zealand, in phasing out the lowest-value coins by rounding cash payments to the nearest five cents while maintaining the accuracy of electronic payments.
The penny was first issued by the government in 1793. Since 1909, the obverse of the coin, made of zinc and copper, has been adorned with the profile of President Abraham Lincoln.
In fiscal year 2024, pennies accounted for 57% – or 3.2 billion – of the Mint’s total production of 5.61 billion circulating coins. The US Treasury Department said the Mint would continue to issue collectible versions of the penny in limited quantities.
A Mint representative said that gold pennies are also planned for release.