U.S. Treasury has put in its final order for pennies. Then what happens?

Yahoo

4 days ago

Say goodbye to your penny jar.
The United States Treasury has put in its final order of pennies, and production is expected to end early next year. The demise stems from an order in early February by President Donald Trump.
The result: No more penny-pinching, forget about getting a penny for your thoughts, and Ben Franklin's quote about a penny saved being a penny earned may confuse future generations.
Here's what you should know.
Although production will cease, the coins will still qualify as U.S. currency. Stores will still be able to accept them, and consumers should still be able to use them in cash transactions.
Pennies cost about 3.7 cents apiece to produce, according to the 2024 U.S. Mint annual report. On his Truth Social website, Trump said the production is wasteful.
Nickels are produced at even more of a loss. In 2024, they cost 13.8 cents to make, according to the U.S. Mint report. Dimes, quarters and half-dollars still cost less than face value to produce.
The Department of Treasury has said removing the penny would save the government $56 million a year in material costs, according to multiple sources.
Many businesses with cash transactions will likely round to the nearest nickel.
James Sego, president of the Professional Numismatists Guild, a non-profit organization focusing on rare coins and paper money, told the Journal Sentinel that even after it stops being used in stores, a penny will still only be worth a penny.
"They're probably not worth keeping in hopes that they may go up in value, because there's just too much supply out there," Sego said.
Sego recommends that people with large amounts of pennies cash them in at a bank.
"The reality is everybody has a giant jar of pennies at home. I don't know one person that doesn't. A big jar is worth $50 or maybe even $100," Sego said.
First issued in 1793, the penny is one of the oldest coins produced by the U.S. Mint, which itself was established just a year earlier. The original coin was larger than the currrent one, and made of pure copper, according to the Mint. It featured a woman's head with flowing hair, signifying Lady Liberty.
Multiple changes to the design have occurred through the decades.
The head of Abraham Lincoln has been on one side since 1909; the "Union shield" has been on the other side since 2010.
Canada ended its penny production in 2012 and Australia stopping minting one- and two-cent coins in 1992, according to Govmint website. New Zealand has stopped minting its one-cent, two-cent and five-cent coins, Govmint said.
This article originally appeared on Milwaukee Journal Sentinel: Penny production to end early next year. What does that mean?