Tag: pennies

With Zinc Up, Pennies Lost Even More Taxpayer Money to Produce in 2016

With Zinc Up, Pennies Lost Even More Taxpayer Money to Produce in 2016

The cost to produce the penny rose to 1.5 cents in the 2016 fiscal year, U.S. Mint spokesman Tom Jurkowsky recently said. That’s the first time costs have been up since 2011, but still just the latest in a string of losses for the most abundant but least valuable coin in circulation.

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In fiscal 2015 the cost was 1.43 cents; in 2014, it was 1.66 cents. The latest figures will be released in the Mint’s upcoming annual report.

For now, Mint facilities in Philadelphia and Denver will continue to stamp out the zinc slugs with a copper coat. In fiscal 2015, they churned out 9.16 billion pennies—more than the nickel (1.48 billion), dime (2.87 billion) and quarter (2.65 billion) combined. The Mint traditionally makes money on the dime and quarter. The combined fiscal weight of materials and overhead sink the penny and nickel, both of which are made of zinc slugs with a fine sheen of copper and nickel, respectively. We’ve documented how the penny and nickel cost more to produce than they are worth before.

Congress would have to pass a law to stop producing either the penny or the nickel.

US Mint Might Stop Making Pennies, AISI Praises Strong Steel Statements

US Mint Might Stop Making Pennies, AISI Praises Strong Steel Statements

The American Iron and Steel Institute praised strong statements from eight nations meeting in Brussels to deal with the steel overcapacity crisis. The U.S. Mint might stop making pennies.

Wither the Penny?

The Wall Street Journal’s Nick Timiraos reported that in a March memo to President Barack Obama, Treasury Secretary Jacob Lew said he planned to suspend production of the venerable penny.

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Pennies fall out of circulation almost immediately, forcing the U.S. Mint to continually stamp out more, and they cost almost twice as much to produce as they’re worth, according to the most recent data from the U.S. Mint.

American Steel Organizations Applaud Overcapacity Statement

The American Iron and Steel Institute today said that a joint statement by eight governments on steel overcapacity issued yesterday at a meeting of most major steel producers in Brussels is an “important demonstration that many major steel-producing nations are united in their commitment to take action to address the global steel overcapacity situation that is negatively affecting the world’s steel industry.”

The statement was issued by the U.S., Canada, the European Union, Japan, Mexico, the Republic of Korea (South Korea), Switzerland, and Turkey as a result of the Organization for Economic Cooperation and Development’s High-Level Meeting on Excess Capacity and Structural Adjustment in the Steel Sector this week.

Free Sample Report: Our April Metal Buying Outlook

It follows a strongly worded statement from the Department of Commerce and U.S. Trade Representative on Monday criticizing China, and other countries, for their unwillingness to work to address the overcapacity issue while at the OECD meetings.

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