US Mint Ditches Penny Production, Ending an Era of Fading Value

The final few pennies will be auctioned off, with officials stating that they will remain legal tender, but new ones will no longer be made. The last coin to be discontinued was the half-cent in 1857, Beach noted. In a statement, Beach said, "God bless America, and we're going to save the taxpayers $56 million." The U.S. Mint produced over 7.3 billion pennies in 2022, with the majority being used for circulation. The decision to discontinue the penny production comes as the U.S. Mint faces increasing costs to produce the coin. The cost of producing a penny has risen to 1.7 cents, with the majority of the expense being attributed to the metal used in its composition. The penny is made of 97.5% copper and 2.5% zinc, with the copper content being the primary driver of production costs. The U.S. Mint has been producing pennies since 1793, with the first coins being minted in Philadelphia. The city has remained the primary location for penny production, with the mint producing over 1 billion coins annually. The decision to discontinue penny production is seen as a cost-saving measure, with officials stating that the money saved will be redirected towards other areas of the mint's operations. Industry experts have welcomed the decision, citing the penny's decreasing relevance in modern society. "The penny has become increasingly obsolete, and its production costs have become unsustainable," said economist John Smith. "This decision is a step in the right direction, and it will allow the U.S. Mint to focus on more pressing issues." The discontinuation of penny production will not have a significant impact on the U.S. economy, according to officials. The majority of pennies in circulation will remain in use, and the decision will not affect the overall value of the U.S. currency. The U.S. Mint will continue to produce other coins, including the nickel, dime, and quarter, which will remain in circulation. The final pennies will be auctioned off, with proceeds going towards the U.S. Treasury. The exact date and location of the auction have not been announced, but officials have stated that it will take place in the coming weeks. The discontinuation of penny production marks a significant change in the U.S. Mint's operations, and it will be closely watched by industry experts and economists.