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)
Famous quotes containing the words metal, content and/or costs:
“There were metal detectors on the staff-room doors and Hernandez usually had a drawer full of push-daggers, nunchuks, stun-guns, knucks, boot-knives, and whatever else the detectors had picked up. Like Friday morning at a South Miami high school.”
—William Gibson (b. 1948)
“I am as content to die for God’s eternal truth on the scaffold as in any other way.”
—John Brown (1800–1859)
“That which costs little is less valued.”
—Miguel De Cervantes (1547–1616)