How Much Does it Cost to Make a Penny?
http://www.usatoday.com/money/2006-05-09-penny-usat_x.htm USA Today pointed out on 5/9/06, it costs more than a penny to make a penny! The Mint estimates it will cost 1.23 cents per penny and 5.73 cents per nickel this fiscal year, which ends Sept. 30. The cost of producing a penny has risen 27% in the last year, while nickel manufacturing costs have risen 19%… The Federal Reserve, which distributes money to banks, pays face value for coins. If a coin costs less to manufacture than the face value, the Mint makes a profit. Last year, the Mint’s coin-making profit was $730 million. Mint officials estimate the added penny and nickel expenses will reduce the Mint’s profit this year by $45 million.
According to the US Mint, as of 2000, it cost slightly less than a penny to make a penny: 0.81 cents. The cost of making the penny and other US coins can be found here: http://www.usmint.gov/faqs/circulating_coins/index.cfm?action=faq_circulating_coin#cost A related fact: Prior to 1982, pennies were made of an alloy of 95% copper, and 5% zinc. But as the cost of copper rose, a penny’s worth of copper started costing more than 1 cent. So pennies are now made with 97.5% zinc, plated with 2.5% copper.
