Metal Content and Manufacturing Costs
The US Mint reported that in fiscal year 2010 the unit cost of producing and shipping one-cent coins was $0.0179 - more than the face value of the coin. By 2012, this figure increased to $0.0241 because of the cost of materials and production. This is partly due to the significant rise in global metal demand and prices.
When copper reached a record high in February 2011, the melt value of a 95% copper penny was more than three times its face value. As of September 14, 2012, a pre-1982 penny contained $0.0250904 worth of copper and zinc, making it an attractive target for melting by people wanting to sell the metals for profit. In comparison, post-1982 copper-plated zinc cents have a metallurgical value of only $0.0056018.
The Secretary of the Treasury currently has authority to alter the percentage of copper and zinc in the one-cent coin if needed due to cost fluctuations.
Read more about this topic: Penny (United States Coin)
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