Latest news with #USMint
Yahoo
3 days ago
- Business
- Yahoo
Sound Off: May 31, 2025
Sun Herald readers weigh in on local and national topics. It costs 3.69 cents to make a penny. So it seems to be a no-brainer to stop making them, which the U.S. Mint will do next year. I figure that at some point, stores will rounding prices off to 5 cents. When that happens, more nickels dimes and quarters will likely be needed. I will let those versed in probability to calculate how many of each will be needed. If too many nickels are needed it may not be worth getting rid of the penny unless we get rid of the nickel, as well. Why do I say that? Because it costs 13.78 cents to mint a nickel. That makes a penny to look like a bargain. there no problem with the dimes and quarters because they cost 5.76 cents and 14.68 cents respectively to mint. What happened to the Gulfport Connect app where requests for city services are done? My app disappeared and attempts to Download have been unsuccessful. The liberal judicial branch of the U.S. government is setting policy for the executive branch of government. We the people voted for change in foreign trade. Same with immigration. The USPS is not funded by the U.S. taxpayer. Only Congress could change/do away with the post office. It is a 'stand alone' quasi-government entity. It is provided for in the Constitution. Read Article Article 1, Section 8, Clause 7: 'the US Constitution ... grants Congress the power to 'establish Post Offices and Post Roads.' As far as your 'so-called' junk mail complaint: Business pay for the post offices to deliver their 'advertisements,' the same as the spurious ads you see while doing a 'google search.' You can go to the post office and fill out a form to stop the delivery of Bulk Business Mail if you desire to do so. Benjamin Netanyahu is concerned that President Trump's 'deal' Iran might cause a nuclear war. We already had a treaty with Iran, but Trump ended it. Now he's making his own deal. It probably involves a golf course. After reading about TACO trades, all of President Trump's flip-flopping on tariffs is making me hungry. And making the folks on Wall Street rich, apparently. The people have spoken. Elon Musk and his DOGE team have done their work. And now Congress is sitting on its hands. How many more folks to we need to vote out to get something done? Send your Sound Offs to soundoff@
CNN
25-05-2025
- Business
- CNN
So what happens to America's 114 billion pennies once the US stops making them?
The American penny isn't going anywhere anytime soon. The US Treasury Department announced Thursday that it plans to start winding down production of the one-cent coin it has been minting for more than 230 years. But the penny will still remain legal tender, and will still be in use at thousands of retailers around the country for sometime to come. 'If we look at the experience in Canada, for the first year after they stopped making pennies, there's really no change in transactions,' Jeff Lenard, spokesperson for the National Association of Convenience Stores, told CNN. Convenience stores do more cash transactions than any other group, about 32 million a day, or about 20% of the total number of purchases by their customers, Lenard said. The National Retail Federation, which represents most major US store chains as well as thousands of small retailers, also said it anticipates its members will use pennies even after production stops at some point early next year, although it does anticipate that many will round cash transactions to the nearest nickel once the supply of pennies at banks starts to run short. 'Retailers' primary goal is serving customers and making this transition as seamless as possible,' said Dylan Jeon, senior director of government relations for NRF. There are an estimated 114 billion pennies currently in circulation, but they are 'severely underutilized' according to the Treasury department. Many are at home in coin jars or junk drawers, or some other forgotten location gathering dust. The math says that all those pennies could fill a cube roughly 13 stories high. Many people don't even take them as change, tossing them into the leave-a-penny-take-a-penny dishes at store checkouts. Lenard said the large number of pennies in circulation means that retailers won't necessary run out of them for a while. But eventually stores won't be able to get new rolls of pennies from their banks and will start rounding transactions up or down to the nearest nickel. The decision when to do that will rest with each retailer, not official government policy. Electronic transactions such as credit and debit card purchases, will continue to be down to the penny, Lenard said, with only cash transactions being rounded. Even in countries like Canada, where penny production has been discontinued, the penny remains legal tender today. Canada's finance ministry said pennies retain their value for transactions 'indefinitely' despite the fact that it stopped making the coin in 2012. If a customer wants to use pennies to complete a transaction, most retailers are likely to allow them, Lenard said. 'There's a saying in retail, 'Never lose a customer over a penny,'' he said. 'I never really thought of it in these terms, but it applies even more here. I think if someone wants to pay with pennies, most retailers will err on the side of making those customers happy.'
Economic Times
24-05-2025
- Business
- Economic Times
Pennies become history in U.S. as Treasury Department places final order, expected to run out by 2026
The US Treasury Department will cease penny production after its final penny blank order runs out in early 2026. This decision comes as the cost to manufacture each penny, primarily due to rising zinc prices, now exceeds its face value, costing 3.7 cents to produce. Tired of too many ads? Remove Ads Penny's Long Run Nears Its End Cost to Make a Penny Now Outweighs Its Value US Mint to Save $56 Million Annually Zinc Drives Up Costs Trump Administration Accelerated the Decision Tired of too many ads? Remove Ads FAQs After more than two centuries in Americans' pockets, the penny will finally be on its way out, as US Treasury Department has confirmed it placed its last order for penny blanks this month, with the United States Mint aiming to stop manufacturing the penny when the latest order runs out, as per a Wall Street Journal predicted that the last batch of the blanks, which are flat, metal discs that the US Mint converts into coins, will run out in early 2026, reported CBS decision was made because now the cost of making a penny is more than its own value. According to CBS News, the penny, which had been launched during the early days of the US Mint after its establishment in 1792, as of 2024, cost around 3.7 cents to manufacture and distribute, as per the US Mint's 2024 annual US Treasury revealed that, by ending production of the penny, it would save the Mint around $56 million in annual savings, as per CBS penny is made of zinc, with its distinctive appearance coming from a copper overlay, Zinc's cost per metric tonne had more than doubled from its price in 2000, as per the Federal Reserve Bank of St. Louis data, reported CBS comes after the Trump administration had recently indicated that it planned to stop making the 1-cent coin, as per the report. Even billionaire Elon Musk's Department of Government Efficiency said in January that the penny was too expensive to produce and in February, US president Trump wrote on his social media site Truth Social, "For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!" adding "I have instructed my Secretary of the US Treasury to stop producing new pennies," as quoted in the the Treasury Department has confirmed that once the final supply of penny blanks runs out in 2026, production will each penny now costs more than 3.5 cents to make, mainly due to rising material costs, especially zinc.
Mint
24-05-2025
- Business
- Mint
End of pennies in US: It costs 4 cents to make a coin — here's how much money it will save and what happens next
The US Mint has reportedly made its final order of penny blanks and plans to stop producing the coin when those run out, a Treasury Department official confirmed Thursday. According to reports, the US Treasury plans to stop putting new pennies into circulation in early 2026, when it has finished minting its final batch of penny blanks. After that, it will take years for the coins to cycle out of public use entirely. This move came as the cost of making a penny rose to more than twice the coin's face value. The Treasury Department was quoted by the Associated Press as saying that the cost of making pennies had increased markedly, by upward of 20 percent in 2024. The face value of 1 penny is one Cent. Hundred cents make one dollar. Earlier this year, in February, US President Donald Trump called on his administration to cease penny production, whose buying power is long past its prime. 'For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!' Trump wrote in a post on his Truth Social site. 'I have instructed my Secretary of the US Treasury to stop producing new pennies," he added. Each penny costs nearly 4 cents — or $0.0369, to be exact — for the US Mint to make and distribute, according to the 2024 annual report by the US Mint. As per the report, the penny's 'unit cost' has gone up in recent years. The nearly 4 cent price tag is up 20.2 percent from the Mint's 2023 report, when a penny cost just over 3 cents. By stopping the penny's production, the Treasury expects an immediate annual savings of $56 million in reduced material costs,an official told Associated Presss on condition of anonymity to preview the news. The Treasury said there are about 114 billion pennies currently in circulation in the US — that's $1.14 billion — but they are greatly underutilized. The penny was one of the first coins made by the US Mint after its establishment in 1792. In total, America's coin manufacturer said it shipped more than 3.17 billion pennies throughout its 2024 fiscal year. That's notably less pennies than it sent the year prior (when nearly 4.14 billion 1-cent pieces went out) The US Mint often changes its new circulation based on public demand and seasonal trends. With digital payment already being the primary method of transaction for a majority of American businesses, the 'change' will mean most things largely stay the same, the Peoples magazine reported. Notably, other countries which stopped making pennies did experience much change. Canada started phasing out its penny a dozen years ago and urged store owners to round prices to the nearest nickel for cash transactions. Electronic purchases were still billed to the nearest cent. The move came after New Zealand, Australia, the Netherlands, and others dropped their lowest-denomination coins. After Canada stopped minting new pennies, it began recycling them for their 'valuable' copper and zinc, according to a 2022 report from the Canadian Mint. The US will likely follow the lead of Canada — which stopped production of its one-cent piece in 2012 — and make those round to multiples of five.
Hindustan Times
24-05-2025
- Business
- Hindustan Times
US to halt penny production: Will it remain legal tender?
The US Treasury may soon halt the production of the US penny at their national mints, according to a recent announcement. The lowest value coin of the United States would eventually be phased out by the US Treasury, meaning that there would be some slight changes to Americans' daily transaction habits. According to The Wall Street Journal, which first reported on the decision, the US Treasury has placed its final order for penny blanks, and production will end when the supply runs out. This could be sometime around 2026. For starters, the production of a single penny is more than its real value. According to the US Mint, each penny now costs about 3.7 cents to mint and distribute, almost four times its actual value. This makes it a burden on taxpayers as well, with the government losing nearly $85 million in 2024 by producing about 3 billion pennies. If the US Treasury stopped minting and the circulation of pennies, it would save nearly that much amount for the taxpayers. ALSO READ | Skilla Baby update: Rapper recovering after Detroit shooting - What we know so far Only earlier this year, Donald Trump had termed the American penny as "wasteful" and even directed Treasury Secretary Scott Bessent to stop producing the coin. The penny is slated to continue being a legal tender, even after the US Mint halts production. Americans can still use pennies for cash transactions, depositing them at banks, or keep them as a collector's item. As of now, there are no announcements for the recall of the American penny by the government. Financial institutions may continue accepting them on the basis of their existing value. For cash transactions, Americans will have to start rounding up to the nearest 5 cents, with nickels having the smallest value thereafter. Card or check transfers will see the same transaction process, with no change.
