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The United States has officially ended its production of penny coins, with the Philadelphia Mint preparing to strike its final batch on Wednesday. This decision concludes over 230 years of minting the iconic one-cent coin featuring Abraham Lincoln. Businesses are already adjusting pricing strategies as the availability of pennies diminishes.

 

This move is expected to save the US government approximately $56 million annually, given that producing each penny costs nearly four cents. The announcement was initially made by President Donald Trump, who aimed to eliminate budgetary waste. With electronic transactions on the rise, experts assert that the penny, first minted in 1793, is increasingly obsolete, reported the BBC.

 

Despite ceasing production, it is estimated that around 300 billion pennies will remain in circulation, far exceeding commercial needs. However, many of these coins are unlikely to be used; a government report from 2022 revealed that a significant portion of coins in circulation reside idle in people's homes. This move prompts concerns about increased costs for consumers as prices round up, potentially adding as much as $6 million annually, according to a study by the Richmond Federal Reserve.

 

Countries like Canada, Australia, and New Zealand have similarly phased out their low-value coins, due to both cost and practicality. The UK considered scrapping 1p coins in 2018, but production was subsequently halted in 2024 due to a surplus in circulation. The focus in the US may now shift to the nickel, which costs nearly 14 cents to produce yet holds a face value of only five cents. Phasing out the nickel could impact consumers by approximately $55 million per year, as noted by recent research.

 

 

 

Key Takeaways

 

• The US ends penny production to save approximately $56 million annually.
• Experts predict higher consumer costs due to price rounding.
• Shift in focus toward the costly nickel for potential elimination.

 

  Adapted by ASEAN Now from BBC 2025-11-13

 

 

None of the coins are necessary anymore and in a post inflation wrecked world the only necessary bill will be the 100 dollar bill

Only the govt could be involved in producing something that cost 4X it's value to make  

 

... "This move is expected to save the US government approximately $56 million annually, given that producing each penny costs nearly four cents." ...

They will push for fully digital payments  citing  cost and 'convenience'  🤑

6 hours ago, johng said:

They will push for fully digital payments  citing  cost and 'convenience'  🤑

And surveillance for those using cash, particularly for tax reasons. I bet everybody here knows somebody who is working off the grid. Personally, I don't like what they do with my money: armies, police, prisons, courts to name just a few.

 

I like pennies. Why should I pay $2.00 for a $1.99 item? I also keep my 25- and 50-satang coins. Frugal is as frugal does.

7 hours ago, unblocktheplanet said:

And surveillance for those using cash, particularly for tax reasons. I bet everybody here knows somebody who is working off the grid. Personally, I don't like what they do with my money: armies, police, prisons, courts to name just a few.

 

I like pennies. Why should I pay $2.00 for a $1.99 item? I also keep my 25- and 50-satang coins. Frugal is as frugal does.

 

The question has been around for a few years "how did Jeffrey Epstein get his money?"  Someone figured out it was all cash, his pimp fees and blackmail.  How do you pay for a private jet with cash?  But I do suspect this move is to test the waters for turning the US Treasury into a crypto-victim (have you noticed how quiet Uday and Kusay Don Jr and Eric have been lately?).

There is at least one supermarket chain in the US that does not take credit cards, and there are gasoline stations that charge less (per gallon) for cash payments.  I guess prices will be rounded off to the nickle.

 

4 cents? That's hilarious. America in a nutshell. How much does it cost to make a dime and a nickel?

21 hours ago, KhunLA said:

Only the govt could be involved in producing something that cost 4X it's value to make  

 

... "This move is expected to save the US government approximately $56 million annually, given that producing each penny costs nearly four cents." ...

The copper value has risen steadily from 2016 to date where the Penny value is 4X more.

The Silver value has risen steadily from 2024 to date.

The USD is no longer the silver note but the Federal Note from years back.

Should put Trumps mug shot on the last minting of the penny because he will go the same way. Everything he does costs 4 tmes as much as it should! 

2 hours ago, Nickcage49 said:

4 cents? That's hilarious. America in a nutshell. How much does it cost to make a dime and a nickel?

The nickel is 14 cents according to the OP above.  The OP doesn't mention the dime though, but a quick google gives the answer; it's about 6 cents.

23 hours ago, johng said:

They will push for fully digital payments  citing  cost and 'convenience'  🤑

Yeah.  I recently went to New Zealand and that's what's happened there; cash is nearly useless now.  The trouble is, after all of the savings made by the banks on this, they are now charging up to 2.5% for every card transaction, and the banks are also charging the vendors for each transaction.  B'stards.

23 hours ago, johng said:

They will push for fully digital payments  citing  cost and 'convenience'  🤑

Cash is often perceived as "free" to use because it does not typically involve direct transaction fees at the point of sale.

Digital payments often come with transaction fees, particularly for specific services or international transfers, which is the most obvious cost to the user.

You'd think they would have stopped the nickel (five cent piece), production, it cost approx 13-14 cents to produce. Easy to see why the US govt is 38 trillion--and climbing, in debt.