You never want one until you need one. Here are 10 things you may not know about the penny.
Peter Hull, NBCLX
The U.S. Mint’s 2019 Annual Report says pennies and nickels cost more to produce than they are worth. A one cent coin cost almost two cents to produce, and a five cent coin cost more than seven cents. Cash transactions are less common today and using pennies in those transactions is rare. Here are 10 truths about our penny.
The penny was the first coin to bear the face of an American president
Before 1909, all U.S. coins were designed with an image of an eagle or the mythical figure Liberty. Much of America's founding principles are strongly anti-monarchist, and founders believed it was inappropriate to put a living person's face on a coin. This was codified into law by Congress in 1866. In 1909, to commemorate the 100th birthday of President Lincoln, the Mint produced a commemorative penny featuring the face of Abraham Lincoln with the Lincoln Memorial on the reverse. The coins were so popular that they became the new look of the penny, changing an American tradition.
Every penny minted since 2006 was produced at a loss
The penny accounts for the largest amount of loss for the U.S. Mint. From 2009-2019 the U.S. Mint produced pennies at a total loss of $586,000,000. In 2019 the loss was $73,000,000.
There are about 130 billion pennies currently in circulation
That’s more than 716 million pounds in pennies. The Mint produces 5-16 billion pennies every year. Coins that are heavily damaged are typically removed from circulation. The U.S. Mint has a program (currently on hold) to destroy mutilated coins and reimburse you for the metal value. Pennies don't expire and they spend about 40 years in circulation. Banks will accept your old pennies, but collectors may pay more for certain coins.
The U.S. Mint has retired 13 American coins from production
There is precedent to retire the penny. During the U.S. Mint's 225-year history, several small denomination coins and all coins valued over $1 have been eliminated from production. One of those coins, the Half Cent, was retired in 1857 due to inflation. Our current penny is experiencing a similar effect, where it's production cost exceeds its face value. Coins with a face value above $1 were retired during the Great Depression. These coins lost their status as legal tender with the passing of the Gold Reserve Act of 1934, a law meant to protect federal gold (U.S. coins belong to the Department of Treasury) from being hoarded by private citizens. This act made gold coins illegal in the U.S.
Pennies were once HUGE
Before 1857, the U.S. Mint produced a coin called the Large Cent. This was a pure copper coin about the size of a Half Dollar. The melt value of the copper in this coin today is about 7¢. The collector value can range from $70-$900 based on quality and variety.
Melting pennies and nickels down for their metal value is illegal
The maximum penalty for melting pennies and nickels is 5 years in prison and a $10,000 fine.
Abraham Lincoln is on both sides of the penny.
If you have a good macro lens or a magnifying glass, you can see many of the details crafted by the U.S. Mint's engravers. Lincoln can be seen on the back of the penny with the naked eye if you get close enough. He’s seated inside the Lincoln Memorial, just like in real life.
Several countries has retired their low denomination coins
If we retired the penny, the U.S. would join other nations to stop minting their lowest denomination coins.At least 29 countries and Hong Kong have stopped making coins with low face values. Most of these coins are the equivalent of the cent in their respective monetary systems. Many other countries have stopped minting these coins, although they haven't been officially retired. Our neighbors in North America and Mexico are two of our closest neighbors to stop making their one cent coins.
“Remember that time is money”
This idea is as old as Ancient Greece, but was made popular by Benjamin Franklin. Professor Robert Whaples of Wake Forest University says the cost of using a penny in a transaction results in wasted time, and this wasted time adds up. “If you get the average wage for an American, and you divide it out, the average American earns about a penny every two seconds. So if it takes you two seconds to fish around for that penny, it’s a loss.” Many statistics put the average annual earnings of an American at around $40,000/year. This breaks down to $800/week, $20/hr or 1¢ every two seconds.
The price of copper continues to increase
In 1961, a pound of copper would cost you 27 cents a pound. In 2011, copper peaked at $4.49 a pound. Today, a pound of copper costs about $2.79 a pound. As inflation increases so does the cost of everything else, including the metals used to make our money. There is less copper in today's pennies than in previous versions and metal composition has changed drastically to make it affordable to produce. Despite new metallic recipes, the production cost is still more than the penny is worth. Inflation will also increase the price of zinc, so changing the metallic composition might not be enough to solve this problem long term.
FAQs
The image on the first cent was of a lady with flowing hair, who stood for liberty. The coin was larger and made of pure copper, while today's penny is made of copper and zinc. Fun Fact! During the colonial period, people used a mixture of coins from other countries.
What are some fun facts about cents? ›
The image on the first cent was of a lady with flowing hair, who stood for liberty. The coin was larger and made of pure copper, while today's penny is made of copper and zinc. Fun Fact! During the colonial period, people used a mixture of coins from other countries.
What does D stand for on a penny? ›
The mint mark is the small letter that shows which Mint location made the coin. The two most common mint marks are the “P” for Philadelphia and “D” for Denver. The initials of the artist(s) who designed and sculpted the coin are also included in small letters.
What year is penny worth $20,000? ›
That's what happened to several pennies produced in 1982, which pushed their value up from 1 cent to nearly $20,000. The penny in question is the 1982-D Small Date Copper Alloy Lincoln Cent, which sold at auction in 2016 for $18,800, according to Numismatic News.
What is the rarest one penny? ›
If you have heard of only one rare coin, there is a good chance that it is the 1933 penny.
What is a random fact about coins? ›
In 1909, President Lincoln appeared on a one-cent coin and became the first real person—as well as the first American president—to have his face appear on a regular-issue American coin. We used to trade gold, silver, and copper.... A 1792 law directed American money to be made of gold, silver and copper.
Why is a penny called a cent? ›
Therefore, the word "penny" came from the British denomination of the same name. The U.S. Mint's official name for it is "cent" and the U.S. Treasury's official name for it is "one cent piece", but for Americans the British term “penny” just stuck.
Why are they called 8 penny nails? ›
THE PENNY SYSTEM
In the 1400s, the price of 120 nails was measured in pennies, or “pence.” Like today, larger nails sold for higher prices. The penny number is simply the price of 120 nails of a given length in historic England.
What does the S stand for on a penny? ›
Mint Mark. A small letter or symbol on a coin used to identify where a coin was made. Current U.S. mint marks are P (Philadelphia), D (Denver), S (San Francisco), and W (West Point).
How much is 1 pound of pennies worth? ›
A U.S. penny weighs 0.088 ounces. A pound of them would be 181 pennies, or 1 dollar and 81 cents. How much is 24 lbs of pennies worth?
A 1958 penny just sold for over one million dollars. The penny, which had a mistake shown on some of its letters, sold for a record $1,136,250.
Why is a 1982 penny worth so much? ›
One reason these coins are so valuable has to do with what they are made of. As GOBankingRates previously reported, any penny minted before 1982 contains 95% copper. Copper pennies are a relatively common find in a penny roll, which lowers their value.
What is the rarest coin in the world? ›
Top 7 of the rarest coins in the world
- One Flowing Hair dollar, silver, 1794. ...
- A gold Umayyad dinar, 723. ...
- Gold Brasher Doubloon, 1787. ...
- Double Eagle Twenty Dollars, Gold, 1933. ...
- A silver dollar with draped bust, 1804. ...
- One Million Canadian Gold Dollars, 2007. ...
- Turin Twenty Francs, 1932.
What is the hardest penny to find? ›
The 1969-S Lincoln Penny – Doubled Die Obverse is one of the most rare pennies sought after by collectors. This variety coin was designed by Victor D. Brenner and Frank Gasparro and features the Lincoln memorial penny design of Abraham Lincoln on the obverse and the Lincoln Memorial on the reverse.
Why is a 1936 penny rare? ›
The rarity of the Proof 1936 Penny.
It was struck to proof quality, to put on record the date '1936', satisfying the needs of the mint rather than the wants of collectors. Coins of Record out of this era are amazingly scarce. Up until its offering in 2002 only three other proof pennies dated 1936 had been sighted.
How much is a George V penny worth? ›
Arguably the most valuable one penny coin is the 1933 George V penny, which is worth an estimated value of £72,000. Although this was originally created as a pattern coin – which means it is not intended for release into circulation – it is believed seven were issued, making them extraordinarily rare.
What is a fact about 50 Cent? ›
His estimated net worth is $270 million. His favorite actor is Charlie Sheen. His group, G-Unit, includes Tony Yayo, and Lloyd Banks. Young Buck and Game were once members but a well-publicized feud developed.
What is the full name of cents? ›
The cent is a monetary unit of many national currencies that equals 1⁄100 of the basic monetary unit. A United States one-cent coin, also known as a penny. Etymologically, the word cent derives from the Latin centum meaning 'hundred'. The cent sign is commonly a simple minuscule (lower case) letter c.
Who invented the cent? ›
Benjamin Franklin reportedly designed the first American penny in 1787. Known as the Fugio cent, it bears the image of a sun and sundial above the message “Mind Your Business.” A chain with 13 links, each representing one of the original colonies, encircles the motto “We Are One” on the reverse. 5.
What cents are rare? ›
7 Most Rare Pennies — and What Makes Them Unique
- 1856 Flying Eagle Cent. ...
- 1864 Indian Head Penny – "L" on Ribbon. ...
- 1909-P and 1909-S VDB Lincoln Pennies. ...
- 1943 Lincoln Cent Struck on Bronze Alloy. ...
- 1944-S Lincoln Steel Penny. ...
- 1969-S Lincoln Penny – Doubled Die Obverse. ...
- 1958 Doubled Die Obverse Cent.