Making Sense Not Cents

Pennies have officially been discontinued in the United States, ending more than 230 years of production. The final batch was minted in mid-2025, and no new one-cent coins are planned for circulation. This decision follows years of debate over the rising cost of minting pennies, which now costs about four cents per coin.

Modern pennies are primarily zinc with a thin copper coating—about 97.5% zinc and 2.5% copper—a composition introduced in 1982 to replace the earlier formula of 95% copper and 5% tin and zinc. Over time, the penny’s makeup has changed repeatedly, shifting from pure copper in its early years to various alloys designed to address fluctuating metal prices and supply concerns.

Gresham’s law, which states that “bad money drives out good,” applies to pennies as well. Many people hoard pre-1982 pennies because they contain significantly more copper, reducing their presence in everyday circulation. With the penny’s discontinuation, this trend may intensify. Coins with high intrinsic value tend to disappear from daily use when their melt value approaches or exceeds their face value.

A copper penny minted before 1982 weighs 3.11 grams, and 145 such pennies equal one pound. As of November 13, 2025, copper’s spot price is about $5.04 per pound, meaning $1.45 in copper pennies has a metal value of roughly $5.04. This large gap between face value and material worth creates a strong incentive to collect older pennies.

However, melting pennies for scrap remains illegal under federal law. While older copper pennies may be worth more than their face value, they cannot legally be converted into raw copper. As pennies are phased out, cash transactions will shift toward rounding policies, though pennies will remain legal tender even as production ends. This transition highlights ongoing discussions about coin composition, economic implications, and practical challenges for collectors, retailers, and the U.S. Mint. Interestingly, reports indicate that producing a nickel now costs nearly 14 cents—making pennies seem almost economical by comparison.