Saturday, May 20, 2006

Pennies and Nickels Aren't Worth Their Metal

Brian
If you were counterfeiting money and realized that your materials cost more than the face value of the money you were printing, you'd stop. But then, you're not the U.S. Mint:

For the first time in U.S. history, the cost of manufacturing both a penny and a nickel is more than the 1-cent and 5-cent values of the coins themselves. Skyrocketing metals prices are behind the increase, the U.S. Mint said in a letter to members of Congress last week.

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 estimates take into account rising metals prices as well as processing, labor and transportation costs. Based on current metals prices, the value of the metal in a nickel alone is a little more than 5 cents. The metal in a penny, however, is still worth less than a penny.
Link (via Neatorama). None of this would have happened if we'd listened to L. Frank Baum.

Indexed by tags money, government, mint, penny, nickel, metal, cost, manufacturing.

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