Should the penny be removed from circulation? (2024)

FAQs

Should the penny be removed from circulation? ›

Many, however, feel sentimentally attached to the coin and do not want to see it removed. As a YouGov poll found, in the U.S., 51% of people oppose eliminating the penny, while only 34% are in favor. What is more, 43% of people said they would be angry or disappointed if the government stopped minting pennies.

Those who favor keeping the penny believe the penny plays an important role in keeping down the costs of the goods and services we buy. If there were no pennies, stores and restaurants would round up to the nearest nickel. This means consumers would end up paying $0.55 for something that should cost only $0.51.

The U.S. Mint has no plans to discontinue the penny, and such a move would require congressional approval. However, the “Penny Debate” continues in the United States, with pro- and anti-penny advocates both making some pretty solid points in their arguments.

These numbers alone put both coins at risk though the cent is the leading candidate for the firing squad. What, then, will happen when the cent is abolished? For the general public, prices would then be rounded to the nearest nickel and special sale prices such as $9.99 will likely revert to $9.95.

Some copper pennies are going for as much as $2 apiece. Buying pennies is more affordable than buying gold, and they can be a little easier to store. At least you don't have to worry as much about theft. Some businesses will store large bags of copper pennies on your behalf in secure locations.

That was until the federal government decided to take the penny out of circulation in the 2012 federal budget, following a finance committee study that deemed the coin too expensive to produce and no longer necessary.

A: All U.S. pennies, regardless of their year of minting, are considered legal tender and can be used to pay for goods and services. However, pre-1982 pennies contain a higher copper content and may be worth more than their face value to collectors.

Removing the penny from circulation will have significant adverse direct effects on consumers. Simulations show that the resulting need to round prices will generate a rounding tax of no less than $600 million a year. The inflationary impact of rounding will probably be small.

While most pennies are worth just one cent, certain years can dramatically increase their value. Penny collectors, also known as numismatists, value pennies based on their minting year, rarity, condition, and production errors.

How much money would be saved by abolishing the penny? ›

The government (therefore society) would save about $80 Million per year (the penny costs abut 1.6 cents to produce) in eliminating the penny.

If you want to use pennies to buy from a vending machine, you would have to insert a handful of them. This is just not practical, and so vending machines have been programmed to not accept pennies for this reason.

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.

Current US one cent coins (colloquially “pennies”) are made from copper plated zinc, and are 97.5% zinc, 2.5% copper. Each one has a mass of 2.5 grams. The number of such pennies needed to make 1 pound (avoirdupois) would be 182 (rounded to the nearest whole penny) and be worth $1.82.

While Congress has spent more than 30 years entertaining legislation to eliminate the penny—as have countries including Canada, which eliminated its penny in 2013, and Sweden, which was ahead of the curve by removing the 1 öre coin in 1972—professor Robert Whaples of Wake Forest University said he's not optimistic of a ...

Coins are “in circulation” when we use them as money. They get passed around from banks, stores, and people over and over again (Circulate). You use your coins to buy something from a store. The store takes your coins to the bank.

A: Wheat pennies are no longer circulated and cannot be used as legal tender. They're considered collectible items now. However, you can always sell your valuable wheat penny to a collector or keep it as a prized possession in your collection.