Check your pockets. Or that weird little ceramic jar on your dresser. You’ll probably find a few copper-colored discs buried under receipts and gum wrappers. But have you noticed how rarely you actually use them? It’s a legitimate question that pops up every time inflation ticks higher: are they going to stop making pennies?
The short answer is no. Not yet.
But the long answer is a total mess of soaring metal costs, stubborn lobbyists, and a government that's basically losing money on every single cent it stamps out. Honestly, it’s one of the weirdest quirks of the U.S. economy. We are currently spending about three cents to manufacture a coin that is only worth one cent. If that sounds like a bad business model, that's because it is.
The Ridiculous Cost of a Cent
The U.S. Mint isn't exactly turning a profit on the penny. According to the most recent Biennial Report to Congress, the cost to produce and distribute a one-cent coin has climbed to over 3 cents. Think about that. Every time the Mint strikes a penny, the American taxpayer loses about two cents. It adds up to tens of millions of dollars in losses every year.
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Why is it so expensive? Zinc.
Most people think pennies are copper. They aren't. Not since 1982. Modern pennies are actually 97.5% zinc with a thin copper plating. When the global price of zinc spikes, the cost of your pocket change goes with it. We’ve seen supply chain disruptions and mining fluctuations push these prices to levels that make the "penny" look like a luxury item the government can't afford.
Despite this, the machines keep humming. The Mint produced billions of these things last year. It feels like a glitch in the matrix, doesn’t it? You’d think a business-minded government would just cut the cord, but the political reality is way more complicated than simple math.
Why We Can't Just Quit the Penny
If you're asking are they going to stop making pennies, you have to look at the people fighting to keep them. It isn't just about nostalgia.
There is a massive lobbying group called Americans for Common Cents. They’ve been around for years, and they are incredibly effective. Their argument is usually built on two pillars: inflation and charity. They claim that if we get rid of the penny, businesses will "round up" prices to the nearest nickel, essentially acting as a hidden tax on the poor.
Is that true? Probably not.
Economists like Robert Whaples have studied this extensively. Whaples, an economics professor at Wake Forest University, has argued for decades that rounding wouldn't actually hurt consumers. In fact, his research suggests it would likely even out over time—some prices would round down, others would round up. But the fear of price hikes is a powerful political tool.
Then there’s the charity angle. You know those "Give a Penny" jars at the gas station? Or the massive jug of coins at the local elementary school fundraiser? Charities like the Ronald McDonald House rely heavily on these micro-donations. They argue that without the physical penny, people won't donate their digital "shrapnel," and millions of dollars in funding for sick kids or local schools would just vanish.
Lessons from the Great White North
We don’t have to guess what happens when the penny dies. We can just look at Canada.
In 2012, Canada decided they’d had enough. They stopped distributing the penny because it was costing them $11 million a year. And you know what happened?
Nothing.
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The sky didn’t fall. The economy didn't collapse. They implemented a simple rounding system for cash transactions: 1 and 2 cents round down to zero, 3 and 4 cents round up to five. If you’re paying with a credit card or your phone? You still pay the exact cent. It’s a hybrid system that has worked remarkably well for over a decade. Australia, New Zealand, and several European countries have done the same. We are one of the last holdouts among major economies.
The Stealth Death of the Penny
Even if the government doesn't officially pull the plug, the penny is dying a slow, natural death.
Cash is no longer king. Between Apple Pay, Venmo, and credit cards, we are living in a digital-first world. When was the last time you saw a "Penny Loafers" store or a "Penny Candy" shop that actually sold things for a cent? You can't even buy a stick of gum for a penny anymore.
A lot of retailers are already effectively "stopping" the penny on their own. Have you noticed the "No Cash" signs at coffee shops? Or the self-checkout machines that only take cards? If businesses refuse to handle physical change, the penny becomes irrelevant regardless of what the U.S. Mint says.
There is also the "circulation" problem. People don't spend pennies; they hoard them. They sit in jars, under car seats, or in the bottom of purses. Because they don't circulate, the Mint has to keep making more of them to replace the ones that have effectively been taken out of the economy by being ignored. It’s a self-perpetuating cycle of waste.
What Most People Get Wrong About the Copper
If you’re thinking about hoarding pennies because you think they’ll be worth a fortune in copper, you're mostly out of luck.
Unless your pennies were minted before 1982, they are mostly zinc. And even if you have a mountain of pre-1982 copper pennies, it is currently illegal to melt them down for their metal content. The Treasury Department saw that coming years ago. They passed regulations specifically to prevent people from turning $100 in pennies into $200 in scrap copper.
So, if you have a 1943 copper penny (which was a mistake, as they were supposed to be steel that year), you’re rich. If you have a jar of 2024 pennies? You have a jar of 2024 pennies.
The Political Roadblock
So, are they going to stop making pennies in the next year or two? Honestly, don't bet on it.
The Coinage Act of 1792 established the penny, and it would literally take an Act of Congress to kill it. Right now, Congress can't agree on much of anything, let alone the fate of a small coin that most politicians think is too "small potatoes" to worry about. There have been bills introduced—like the Currency Optimization, Innovation, and National Savings (COINS) Act—but they usually die in committee.
There's also the "Lincoln Factor." Abraham Lincoln is a beloved figure. Some lawmakers from Illinois (Lincoln’s home state) view the penny as a monument to his legacy. They worry that removing the penny is somehow an affront to Honest Abe. It sounds silly, but in Washington D.C., symbolism often outweighs logic.
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What You Should Do With Your Pennies Now
Since the penny isn't going anywhere tomorrow, but its value is shrinking every single day, you should probably stop treating them like trash. Here is how to actually handle your 1-cent coins so they don't just take up space:
- Use the Coinstar (The Right Way): Most people hate the 11-12% fee Coinstar takes. But did you know that if you choose a gift card (like Amazon or Starbucks) instead of cash, they usually waive the fee entirely? It’s the best way to turn a jar of "worthless" metal into actual spending power.
- Check for Errors: Before you dump them, look for "doubled die" errors or pennies from the early 1900s. A 1909-S VDB Lincoln cent can be worth hundreds or thousands. It’s rare, but it happens.
- Donate to Schools: Many schools still run "Penny Wars" fundraisers. It’s a great way to get the weight out of your house while actually doing some good.
- Bank It: Most banks will still give you paper rolls for free. Sit down on a Sunday, roll them up, and take them to your local branch. They are legally obligated to take them.
The era of the penny is definitely in its twilight. We are watching a slow-motion exit of a coin that has outlived its usefulness by at least thirty years. Whether the government officially stops production or we all just collectively decide to stop picking them up off the sidewalk, the "cent" is becoming a relic of a physical-cash past.
Next Steps for You:
If you have a large stash of coins, take thirty minutes this weekend to sort them. Pull out anything dated before 1982 just in case the laws on melting change in the future (unlikely, but hey, they are 95% copper). Take the rest to a Coinstar and opt for an e-gift card to avoid the service fee. This turns your dead weight into digital currency you'll actually use for your next online order.