What's the Cents in Making Pennies?

gwilks98 · 07-03-2006, 01:30 PM

Quote:

It now costs more than a penny to make a penny
Washington, DC - A penny bought a loaf of bread in early America, but it's a loafer of a coin in an age of inflation and affluence.

It's slowly sliding into monetary obsolescence.

For the first time, the U-S Mint has said pennies are costing more than one cent to make this year, thanks to higher metal prices.

A Maryland man who heads up a group called Citizens for Retiring the Penny says the very idea of spending one-point-two cents to put one cent into play strikes many people as “faintly ridiculous.”

Gallup polling has shown that two-thirds of Americans want to keep the penny coin. There's even a pro-penny lobby called Americans for Common Cents.

The Mint's announcement is a milestone, though, because coins have historically cost less to produce than the face value paid by receiving banks.

Source:
http://www.tampabays10.com/news/nati...?storyid=34573

If they retire the penny, I sarcasticly wonder if prices/taxes will round up or down? I wonder if this will have an inflation effect?

mcs328 · 07-03-2006, 02:20 PM

They'll round up if they get money and round down if they give you money is my thinking.

wung · 07-03-2006, 03:05 PM

i suppose if electronic payment becomes the preferred method of payment, then it doesn't matter as much ...

if not, i wouldn't mind not having pennies ...

i think the gov. will probably come up with a rounding rule that everyone has to follow. gas stations have that right now to govern when to round up or down. i forgot the name of this rounding rule but it's fairly complicated.

Hoser · 07-03-2006, 04:58 PM

When I was stationed overseas, the prices in the BX (Base Exchange) and the gas station were rounded to the nearest 5 cents. It saved money by not having to ship pennies there.

zippyjuan · 07-03-2006, 05:58 PM

The nickle now costs more than five cents to make too. In the past, coinage has made money (in profits besided the physical manufacure) for the government. Pennies nowdays are mostly made from zinc instead of copper. That change was made because copper was getting too expensive. One mentioned replacement was plastic.

gear02 · 07-03-2006, 06:45 PM

In some asian countries where cent-equivalent money is useless to carry around, they just round to the nearest whole value.

Itsme · 07-03-2006, 07:18 PM

In the past tradition won out over financial sense....probably will happen with this one two....and the penny will stay.

DarkFury · 07-03-2006, 07:53 PM

Quote:

Originally Posted by gwilks98

If they retire the penny, I sarcasticly wonder if prices/taxes will round up or down? I wonder if this will have an inflation effect?

As far as your Federal taxes go... they already round those to the nearest dollar.

Chgoman · 07-03-2006, 08:41 PM

It's was acutally a big jump beacuse of the prices. It now costs 1.3 cents to make every penny. It's actually bad for the economy as making money at a loss costs the government money and devalues currency.

InfiniteNothing · 07-11-2006, 09:41 AM

My solution: make pennies worth 2 cents. Nickles can be worth $0.07

zippyjuan · 07-11-2006, 09:58 AM

Some people have enough trouble counting change back now- that's why places like McDonald's puts pictures of food on their registers. Try figuring change with a seven cent piece!

Airencracken · 07-11-2006, 10:01 AM

attgig · 07-11-2006, 11:32 AM

so, if I were to get all my pennies, and melt them down, then i could sell the metal for more than its worth? could i sell the metals back to the US mint? =)

InfiniteNothing · 07-11-2006, 07:20 PM

Quote:

Originally Posted by attgig

so, if I were to get all my pennies, and melt them down, then i could sell the metal for more than its worth? could i sell the metals back to the US mint? =)

I imagine much of the expense is in the manufacturing. So no.

07-03-2006, 02:20 PM	#2
mcs328 Admiral Join Date: Feb 2001 Location: Maryland Posts: 6,578	They'll round up if they get money and round down if they give you money is my thinking. __________________

07-03-2006, 05:58 PM	#5
zippyjuan Picture of the Day Guru Join Date: Oct 2002 Location: Sunny San Diego Posts: 8,756	The nickle now costs more than five cents to make too. In the past, coinage has made money (in profits besided the physical manufacure) for the government. Pennies nowdays are mostly made from zinc instead of copper. That change was made because copper was getting too expensive. One mentioned replacement was plastic. __________________ I add new pictures to my photo gallery pretty regularly. You can see them here if you are interested: http://www.pbase.com/jeffryz

07-11-2006, 10:01 AM	#12
Airencracken Admiral Join Date: Jul 2003 Location: California Posts: 6,681	__________________ "I remember my first orgasm, I just wish someone was there to share it with me..."11-05-2003 05:33 AM - Topane They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety. - Benjamin Franklin Religion is the sigh of the oppressed creature, the heart of a heartless world, & the soul of soulless conditions. It is the opiate of the masses. - Karl Marx Hell is other people - Jean-Paul Sartre

07-11-2006, 11:32 AM	#13
attgig Chief of Naval Operations Join Date: Jun 2000 Location: the burbs of baltimore Posts: 11,924	so, if I were to get all my pennies, and melt them down, then i could sell the metal for more than its worth? could i sell the metals back to the US mint? =) __________________

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07-03-2006, 03:05 PM	#3
wung Lieutenant Join Date: Aug 2002 Posts: 435	i suppose if electronic payment becomes the preferred method of payment, then it doesn't matter as much ... if not, i wouldn't mind not having pennies ... i think the gov. will probably come up with a rounding rule that everyone has to follow. gas stations have that right now to govern when to round up or down. i forgot the name of this rounding rule but it's fairly complicated.

07-03-2006, 04:58 PM	#4
Hoser Commander Join Date: Apr 2000 Location: Omaha, NE, United States Posts: 1,275	When I was stationed overseas, the prices in the BX (Base Exchange) and the gas station were rounded to the nearest 5 cents. It saved money by not having to ship pennies there.

07-03-2006, 06:45 PM	#6
gear02 Admiral Join Date: Apr 2000 Location: Seattle, WA Posts: 7,223	In some asian countries where cent-equivalent money is useless to carry around, they just round to the nearest whole value.

07-03-2006, 07:18 PM	#7
Itsme Vice Admiral Join Date: Aug 2004 Location: Southern California Posts: 4,813	In the past tradition won out over financial sense....probably will happen with this one two....and the penny will stay.

07-03-2006, 08:41 PM	#9
Chgoman Lieutenant Commander Join Date: Apr 2002 Location: Mission Viejo, CA Posts: 696	It's was acutally a big jump beacuse of the prices. It now costs 1.3 cents to make every penny. It's actually bad for the economy as making money at a loss costs the government money and devalues currency.

07-11-2006, 09:41 AM	#10
InfiniteNothing Chief of Naval Operations Join Date: Aug 2002 Location: San Diego Posts: 10,086	My solution: make pennies worth 2 cents. Nickles can be worth $0.07

07-11-2006, 09:58 AM	#11
zippyjuan Picture of the Day Guru Join Date: Oct 2002 Location: Sunny San Diego Posts: 8,756	Some people have enough trouble counting change back now- that's why places like McDonald's puts pictures of food on their registers. Try figuring change with a seven cent piece!

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