New article on the cost of making nickels has gone up, again. http://www.washingtonpost.com/blogs...penny-this-year-and-8-cents-to-make-a-nickel/
This has been going on since ca. 2006. Stupid mint, stupid legislature, stupid government in general. They should just flat out eliminate the cent and the five cent coin.
If I remember correctly, it took Congress 10 years to reduce the size of the large cent and eliminate the half cent in 1857. The value of the dollar has declined 99% since 1914. I expect no action from Congress.
Or, at a minimum, stop making current nickels and simply legislate that current cents are now worth 5 cents. Change the denomination on new copper plated zinc coins. Voila, problem solved for a decade or two, and people will think they are now "richer".
So, can we infer that it costs $0.23 (or close) to produce $100 bills? Though, the new $100 bills and other denominations have security strips and more anti-counterfeiting measures built in which adds to the cost... Still, probably similar cost to produce a $1 bill and a $100 bill - a $100 bill is about 100 times more cost effective!
If not eliminating the penny, why not just make fewer of them? Mint them in reduced numbers, and only increase if a shortage arises.
I wish they'd expand denomitTions to include the $500 and $1k bills again a c note dont go that far no more one won't fill the fuel tank on my truck and eliminate anything under a dime
I wonder what the "collection rate" for the 1 cent and 5 cent coins are? In other words, when 100 are issued into the market, how many are recovered by the Federal Reserve after their life in circulation? Is government recycling (melt/reuse) a consideration? Or do they even collect and recycle coins in the USA? Or does the Fed just keep dumping more into the market when quantities go low? ...Kinda like the engine oil in my car: I never get an oil change, I just keep dumping in new. Helps keep the smoke down. I've heard a dollar bill only lasts a "few months" in circulation.
There doesn't exist a way to accurately determine how many older coins remain in circulation as with dollar bills - bills going through the Fed are identified and the miserable notes withdrawn. Damaged coins are redeemed and withdrawn, but not nearly in the quantity that dollar bills are. One factor that is different now vs. two decades ago is the CoinStar phenomenon - lots of coins that had been lying around for literally years even decades making their way back into circulation.
No it has gone DOWN. 2014 cost 8.09 cents each 2013 cost 9.41 cents each 2012 cost 10.09 cents each 2011 cost 11.18 cents each 2010 cost 9.22 cents each 2009 cost 6.03 cents each 2008 cost 8.88 cents each 2007 cost 9.53 cents each 2006 cost 5.97 cents each 2014 figure is from the Washington Times article. other figures from 2013 US Mint Annual Report, 2011 report, 2008 report. Because if they minted them in less numbers than they do, a shortage WILL occur. The reason they mint the number they do is because that is the number needed to satisfy the demand. It's either mint what is needed for demand, or eliminate completely and round. Anything else just causes lingering difficulties.
As noted above by Conder101, according to the 2013 US Mint's Annual Report, the penny and nickel costs for producing and distributing are above face value for eight consecutive years. However, the last three years show that costs have declined (not sure about the first five years of the last eight). Penny 2013: $0.0183 2012: $0.0200 2011: $0.0241 Nickel 2013: $0.0941 2012: $0.1009 2011: $0.1118
