Answers » Categories » Money & Finance

What is the cost to make a Penny?

What's a Penny’s Production Cost?


0
1 Report
MORE: money, cost, penny

1 Answer
0 
According to last year’s data, a penny’s cost value is 2.41¢ US. Thus, a penny’s actual value is definitely higher than its face value now. This trend has been going on for 6 years already and the United States Mint (the agency that makes money for the country to use) is starting to change the way they make pennies.

A penny’s materials mainly determine its cost. 2.5 percent of it is made of copper while its remaining parts are made of zinc. Increasing mining regulation and market demands are the factors why these materials became more expensive.

Thus, in order for the country to lessen its costs when it comes to the production of pennies, it needs to follow the current state of some European bills which are made of cheaper metals and even plastics. Not all Americans are agreeable to this solution for they fear that cheaper materials make cause the famous US coin to look differently. Some of them are even suggesting that the situation calls for a whole 1¢ already which is something that would need a lot of getting used to.

Additional Coin Which Has a Higher Production Cost

• nickel - 11.18¢ US

Coins Which Have Lower Cost Values

• quarter - 11.14¢ US
• dimes

Nickels and pennies need to have lower production costs soon. Unstable commodity values are not even making things better. Thus, the Mint is now planning to make those necessary modifications to the mentioned coins above. This is something that the people in the United States have to deal with regardless of their opinions.

Actually, a change in the standard penny has already been done in 1943. Steel pennies were made instead of copper ones for the material was very much needed during the war. Thus, changing a penny’s composition is really not something new.
Dec 13th, 2012 at 2:39 AM
Reply

Answer this question

by Anonymous - Already have an account? Login now!
Your Name:

Your Answer:
Source(s): (optional)

Enter the text you see in the image below
What do you see?
Can't read the image? View a new one.
Your answer will appear after being approved.

Ask your own question

Tagged
money (4)
cost (4)
penny (1)

Ask a Question

Categories
Electronics
Internet
Celebrities

Follow Us