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Coins cost more to make than face value

submitted on January 16, 2011 by siggy38 in "Member's Lounge"

If you ran a business that sells a product for less than it costs to make, you'd soon be broke.

So why is the U.S. government still in the business of making pennies?

Each one of those tiny tributes to Abraham Lincoln costs 1.62 cents to manufacture. Eeek In other words, if you had the proper equipment to melt pennies, the raw materials would bring a 62% return on your investment, minus costs — and ignoring the pesky little fact that melting legal tender is illegal.

The nickel is in the same boat. According to the U.S. Mint, it cost Uncle Sam 5.79¢ to make each 5¢ piece in 2009. Dimes, quarters and dollars are much better bargains, costing much less to produce than their face value.

Read more here:

  • 96655
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    Posted by CouponNut on January 16, 2011
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    Mr Green Well that all makes CENTS!
    • deby32953
      Posted by deby32953 on January 16, 2011
      [reply] 6 0
      Ug! Bad joke! Every dime I hear it!
  • 96669
    Posted by webbyone2010 on January 16, 2011
    [reply] 8 0
    Maybe we should switch to steel pennies like they did during WW II.
    • CouponNut
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      Posted by CouponNut on January 16, 2011
      [reply] 3 0
      That was done in 1943, we have a whole bucket full of them because my parents never spent them.
  • 96687
    Posted by sareece on January 16, 2011
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    I love America and have fought to keep it free, but its no wonder we are a nation full of debt. Neutral
  • 96695
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    Posted by Solstice on January 16, 2011
    [reply] 3 0
    It should be noted that a coin under normal use will outlast a paper bill under normal use, and by a wide margin of time. This is the very reason the debate for coins of larger denominations continues today. In the long-run you actually save money, as less need to be produced to fulfill demand.

    The average American carries far less hard cash, if at all anymore, and I certainly would have no problem using $5 and $10 dollar coins instead of paper. I maybe only keep a few paper bills in my pocket anyway.

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