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Yahoo
4 days ago
- Business
- Yahoo
No more pennies: Midland collector shares what the coin's end means for your wallet
MIDLAND, Texas (KMID/KPEJ)- The penny, long the most neglected coin in our change jars and couch cushions, is about to clock out for good. The U.S. Department of the Treasury recently confirmed it will end production of the penny in 2026, citing high costs and dwindling use. According to the U.S. Mint's own reports, it costs about 2.7 cents to produce a single penny, meaning taxpayers lose millions each year just keeping the coin alive. For most Americans, the change might go unnoticed. But for William Welsh, owner of Preacher Bill's Coins in Midland and a collector himself, the announcement is bittersweet. 'It really needed to be done. I thought it would be done much earlier. It's sad, I say. It's sad because pennies are just such an important part of our economy,' Welsh said. Welsh has been collecting coins since childhood and now operates a small shop in Midland where he buys, sells, and appraises everything from 19th-century nickels to rare Lincoln cents. To him, pennies aren't just metal, they're miniature time capsules. Since the news broke, Welsh said he's seen a steady rise in people coming in to buy pennies, so many, in fact, that he's starting to run out. 'Just the fact that they're going to be stopped production has caused a lot of people in the last few months to collect more pennies, and we've seen the values really start to soar,' he said. With the 2026 cutoff looming, some collectors are already treating modern pennies, especially from 2024 and 2025, as future collectors' items. '2024 pennies are a short supply, so those are good, especially if you can find them in uncirculated,' Welsh said. 'And then the 25s probably will be… the one that people want to collect right away.' The value isn't just speculative. According to Welsh, pennies minted before 1982, which were primarily made of copper, have already doubled in value based on metal content alone. 'I've told people for a lot of years to collect your copper pennies, that's 1982 and back, and to just put them up,' he said. 'They've been over two cents each in value. So you immediately double, but copper will continue to go up in value.' And while most pocket change won't fetch more than face value, certain rare pennies have already crossed into four-digit territory. Welsh points to the 1909-S VDB Lincoln cent, the first of its kind with designer Victor D. Brenner's initials, as a classic example. 'They've started about $600, and you can get up into the hundreds of thousands if the grade is amazing,' he said. Another one to look out for? The 1955 doubled die penny, a misprint that collectors adore. 'Those start at about $500 and go up,' Welsh said. The first U.S. cent was minted in 1793, a massive copper coin by today's standards. Since then, the penny has undergone dozens of design and composition changes, from Flying Eagle cents in the 1850s to steel cents issued during World War II when copper was diverted to the war effort. The familiar Lincoln penny debuted in 1909 to honor the 100th anniversary of Abraham Lincoln's birth. It was also the first U.S. coin to feature a real person, a controversial move at the time. 'The Lincoln penny, the Indian Head penny, they were trying to honor the Indians, our Indians. And then with the Lincoln penny, the importance of Abraham Lincoln,' Welsh said. But the economic reality has changed. Canada stopped producing its penny in 2012, joining countries like Australia, New Zealand, and Brazil in retiring their lowest-denomination coins. 'It costs about two and a half cents to make a penny, so it doesn't make any sense, I know the play on words to make something you're losing money on,' Welsh added. The change comes amid a national shift away from cash. In 2023, only 16% of American payments were made in cash, according to the Federal Reserve, and nearly 40% of consumers report never using cash at all. In response, President Donald Trump ordered the Treasury to stop minting pennies, citing their unsustainable cost. Although the U.S. Mint will stop making new pennies, ones already in circulation will still be accepted as regular money. You won't have to turn them in or stop using them. However, some stores may start rounding prices up or down to the nearest five cents when people pay with cash, a practice already common in other countries. 'If it's 57 cents, they'll do it as 55. If it's 58 cents, they'll do it as 60. That makes sense. A lot of places already do that, even with the pennies.' Still, Welsh believes the penny's legacy will outlast its circulation. 'You know, I would keep every penny. I mean, for now… Someday, you know, I'll tell your grandkids and say, This is what we used to have pennies. We don't have them anymore.' As for how he'd write the penny's obituary? 'Mine would probably be pretty funny, something about sense of sense of sense,' he said with a laugh. 'But just sad to see you go.' William Welsh offers free appraisals at his Midland shop, no matter how small the pile. He encourages everyone to check their change jars, especially for copper coins dated 1982 and earlier or unusual errors like off-center strikes or doubled dates. Because even if the penny's time is running out, you might still have a few that, quite literally, make sense to hold onto. To see if your coins are valuable, visit Preacherbill's Coins in Midland, located at 1004 W Front St, Midland, TX 79701, open Monday to Saturday from 10 AM to 6 PM. You can also call (432) 222-0160 for more information. William Welsh, aka Bill Welsh or Preacherbill, operates Preacher Bill's Coins in Midland, a shop that's been serving collectors nationwide for over 40 years. From silver and gold bullion to rare coins and autographs, the store welcomes beginners and longtime collectors alike, whether you're hoping to expand a collection, verify the value of an old coin, or sell something from your stash. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
USA Today
12-02-2025
- Business
- USA Today
Is eliminating the penny a good idea? Other countries have already done it
Is eliminating the penny a good idea? Other countries have already done it Show Caption Hide Caption President Trump pauses penny production The penny may soon be obsolete because President Trump told the treasury department to stop making them. Fox - 5 NY The penny design included 'Liberty,' a 'Flying Eagle' and an 'Indian Head' The penny was originally made of pure copper and now made of a copper-coated zinc composition With rising production costs and dwindling usefulness, President Donald Trump has ordered the U.S. Treasury to stop minting the penny, reviving the debate over the future of America's smallest coin 'Let's rip the waste out of our great nation's budget, even if it's a penny at a time,' Trump wrote on Truth Social. While Congress holds the authority to approve coin production, Trump's case is simple: pennies cost more than they are worth. Pennies 'literally cost us more than 2 cents" to make, Trump wrote. Story continues below photo gallery. According to the U.S. Mint's fiscal year 2024 report, it is considerably more. It costs 3.69 cents to produce and distribute a single one-cent piece, up more than 20% year-over-year and 75% since 2021. During the 2024 fiscal year, officials at the U.S. Mint reported losing $85.3 million on pennies. Frequently given as change but seldom spent, the penny has been a target of criticism for decades due to its ever-diminishing value and utility. The U.S. penny, first minted in 1793, has undergone many design changes throughout its history, according to a December 2022 Congressional Research Service report. History of the U.S. penny design The penny started with a depiction of Liberty, symbolized as a woman with flowing hair and interlinked chains representing the unity of the original 13 states. There were the "Flying Eagle" and 'Indian Head' designs in the 19th and 20th centuries before the penny's design was changed to honor Abraham Lincoln's 100th birthday in 1909. It was the first time a U.S. president appeared on a circulating coin. Lincoln has sustained, but the reverse of the coin has changed in the past century. It went from two wheat sheaves and then the Lincoln Memorial to the current Union Shield design. Perhaps more telling, however, have been the changes in the coin's composition. Is the U.S. penny made of copper? The Coinage Act of 1792 set the stage for the original penny: large, pure copper pieces. As costs rose, the penny shrank, and its composition shifted. In the build-up to the Civil War, it went to a copper-nickel blend before settling on bronze during the war. Copper shortages in 1943 led to zinc-coated steel pennies that resembled dimes, but by 1982, rising copper costs pushed the mint to today's copper-coated zinc composition. Rising copper costs triggered a penny shortage in 1974, when about half of the 62 billion pennies went out of circulation, according to estimates from U.S. Treasury officials. People kept them and dreamed of future returns on the copper they contained. Today, people still horde them, but not for their copper value. Only about one-third of the billions of pennies made each year actually circulate, due primarily to their diminishing utility, according to the Congressional Research Service report. Their journey is often a one-way trip from production to consumers. Is this the end of the road for the U.S. penny? Few people consider making sure they have pennies with them before leaving the house, and for good reason. The obvious places for spare change, such as parking meters, vending machines and toll booths, have shunned pennies for decades. Even still, the argument from the U.S. Mint officials was that they were profitable, there was demand and discontinuing them would send an alarming inflationary signal to the public. Even as pennies were converted to mostly zinc in the early 1980s and became highly profitable, they were nonetheless targeted for government cost cutting. Many called for their demise in the mid-1980s after a Reagan administration report saw them as an opportunity for savings within the Treasury Department. Replacing them with two- and three-cent coins, as minted between 1851 and 1889, was also proposed at that time. Other countries have ended penny production There are arguments that removing the penny could save money, free up resources at the mint and allow for more focus on cost-effective higher-denomination coins. Discontinuing the smallest-denomination coin has been done by major nations before. Canada ended penny production in 2012, calling the coins a waste of resources and implementing rounding rules for cash transactions. Australia stopped minting one- and two-cent coins in 1992 due to rising inflation and production costs. Sweden and New Zealand also ceased producing their one-cent coins. There is opposition to getting rid of the penny However, the push to eliminate the penny in the U.S. has encountered significant resistance. Americans for Common Cents, an advocacy group, argues that abolishing the penny would not result in savings, as many of the mint's operational costs would remain, therefore raising the production costs of other coins. Additionally, eliminating the penny would likely increase demand for nickels, which are even more expensive to mint, costing 13.78 cents each, according to the mint's 2024 fiscal year report. For comparison, the U.S. $1 and $2 notes cost just 3.2 cents to make, according to the Federal Reserve Board. Opponents for decades have warned that removing the penny could lead to rounding prices upward from the 95 and 99 cent pricing strategies, effectively introducing a new tax on small purchases. Moreover, sales tax would still remain, messing things up even if retailers rounded prices off to the whole dollar. Still, some have found a use for pennies, most notably the rare bronze pennies minted during World War II. In 2019, one sold for more than $200,000, according to Heritage Auction. While finding one of those is a long shot, other valuable pennies could be tucked away in jars, drawers or piggy banks. Here are a few examples, courtesy of Heritage Auction:
USA Today
10-02-2025
- Business
- USA Today
Making change: Trump tells US Treasury to stop making pennies. What if we drop the penny?
Making change: Trump tells US Treasury to stop making pennies. What if we drop the penny? Show Caption Hide Caption President Trump pauses penny production The penny may soon be obsolete because President Trump told the treasury department to stop making them. Fox - 5 NY No more pennies from heaven? Whether you're pinching pennies or penny smart and pound foolish, the U.S. is considering a penny drop. President Donald Trump wants the U.S. to stop making the coins. On Sunday, he posted on Truth Social that he's instructed the Secretary of the U.S. Department of the Treasury to stop minting the country's smallest circulating denomination, noting they cost more to create than they're worth. "Let's rip the waste out of our great nations budget, even if it's a penny at a time," Trump said. Can the president make that decision without the OK from Congress? What happens to making exact change? When, or if, the U.S. could stop making pennies is unclear. But some other countries have already made a similar move. Here's what we know so far. How much do pennies cost to make? A 2024 report from the U.S. Mint said it costs about 3.69 cents to make a penny. It said the cost to make pennies and nickels have been more than face value for the past 19 years. In an X post, the Department of Government Efficiency (DOGE) led by Elon Musk, said making 4.5 billion pennies in fiscal year 2023 cost the country about $179 million. Why are pennies so expensive? Until 1982, pennies were mostly made of copper. Now, they're made of copper-plated zinc. Metal prices have largely affected the cost to mint the coins. Can Trump get rid of them? According to the U.S. Mint, Congress is the body that approves every coin it produces. The Coinage Act of April 2, 1792 established the Mint and the regulation of coins in the United States. There was a relatively recent attempt to fix the issue. A bill introduced by U.S. Sen. Margaret Wood, D-New Hampshire, would have changed the metals used to create coins to cut costs. The Coin Metal Modification Authorization and Cost Savings Act of 2023 had bipartisan support but died in the Senate Committee on Banking, Housing, and Urban Affairs. Have other countries gotten rid of their smallest coins? Yes. At least three other countries have gotten rid of their smallest coin denominations: Canada, New Zealand and Australia. How will we make change if we get rid of pennies? Most countries start rounding to the nearest five-cents to make change. More: USPS reverses plan to hold packages from China. See why Trump tariffs still affect the mail What pennies are worth the most money now? An uncirculated 1914 Lincoln penny minted in Denver could fetch up to $1,500, according to JM Bullion. The site shows an uncirculated 1856 Flying Eagle could fetch $14,500. An uncirculated 1877 Indian Head Penny could get you up to $3,000. Large cent coins, created from 1793 to 1857, have the potential to fetch, well, a pretty penny. An uncirculated 1799 Draped Bust could get up to $210,000. Do you know where US coins are minted? The U.S. Treasury has six sites around the country, and not all of them mint money. Washington, D.C.: This site serves as headquarters for the U.S. Mint and does not make coins. It handles business, like research and marketing, for the mint system. Fort Knox, Kentucky: The nation's gold bullion depository is here, and coins are not made on site. Denver, Colorado: Makes the coins that circulate in the economy and collectibles. Philadelphia, Pennsylvania: The largest mint in the world makes coins to collect and to circulate. It also makes medals and the dies for coins and medals. San Francisco, California: This site makes collectible coins. West Point, New York: This site stores precious metals, including gold and silver. It makes collectible coins and bullion coins for investment. Do you know what a letter on a coin or medal means? That's a mint mark. it shows where the coin was made. A D or S stamped on a coin shows whether it was minted in Denver or San Francisco. A P goes on coins made in Philadelphia, except for pennies. Those coins got a P for the first time in 2017 to honor the 225th anniversary of the Mint. W for West Point appeared on a circulating coin for the first time in 2019, when the facility made 10 million quarters for the America the Beautiful program. Which mints make pennies? Now, per the U.S. Mint, most pennies are made in Philadelphia or Denver, though the San Francisco and West Point mints make some for collectors. Do you have any of these coins? These rare dimes are worth over $ how to check Did the US have a coin smaller than the penny? Yes! Half-cent coins were made between 1793 and 1857. Some variations are rare, potentially worth thousands of dollars now, depending on quality and circulation status. JM Bullion, an online precious metals retailer, lists an uncirculated 1796 right-facing Liberty cap coin as potentially worth $100,000. Could nickels be on the chopping block soon? Nickels aren't part of the discussion right now, but according to a 2024 U.S. Mint report, it costs about 13.78 cents to mint each 5-cent coin. Contributing: Minnah Arshad and Fernando Cervantes Jr. Bonnie Bolden is the Deep South Connect reporter for Mississippi with Gannett/USA Today. Email her at bbolden@
