Does it make sense to keep minting the penny?

Geoff Bennett:

The penny could soon be a thing of the past. President Trump is pushing to end production of the 1 cent coin, citing its rising costs.

Each penny costs nearly 4 cents to make, and scrapping it could save taxpayers about $56 million a year. And that raises the question, does it still make sense to keep minting them?

Our Deema Zein has more.

Deema Zein:

It's the latest step in the Trump administration's push to end the 1 cent piece.

For more on this fight and what it could mean for you, we're now joined by John Feigenbaum, who runs Whitman Publishing, a leading producer of numismatic reference books and executive director of Professional Numismatists Guild, an organization made up of the country's top rare coin and collectible paper money dealers.

John, welcome to the program.

John Feigenbaum, Executive Director, Professional Numismatists Guild:

Thank you for having me.

Deema Zein:

To jump in, I want to ask, how big of a deal is this?

John Feigenbaum:

You know, it's a huge deal that we're finally coming to an end with the United States cent. It's an amazing time in collecting for us and in the whole numismatic community.

And we have been waiting for this shoe to drop, actually, I have, for a long time.

Deema Zein:

So in 2006, the penny became more expensive to make than its value. Can you talk a little bit about how that stands today?

John Feigenbaum:

Yes. I think, the last time we checked, it cost 3.7 cents to make a 1 cent penny. So, as you can see, every time you make a coin, you lose money, which is really a bad situation for any manufacturing facility, which is what the United States Mint really is at the end of the day.

Deema Zein:

And talking about how much money that is, how big of savings is this really going to be?

John Feigenbaum:

Well, it's substantial. And I think it would be really exciting if we shifted the production from, let's say, the penny to a $5 coin, for example, which I think is much more practical in the current time.

I mean, let's buy a cup of coffee with a coin rather than, what can we do with a penny? I don't know. I don't pick them up anymore.

Deema Zein:

The nickel costs 13.8 cents to produce. That's a 5 cent nickel. So do we see that other coins could be next on the chopping block?

John Feigenbaum:

You know, I would suspect that practical minds would prevail in that regard. And I think the nickel is probably in the same department where it should be reconsidered whether we keep making them.

You know, again, it's the whole, do I pick this up off the street kind of mentality, does it pass that test?

Deema Zein:

So what are some, then, the potential downstream consequences that we may see as a result of getting rid of the penny?

John Feigenbaum:

Well, I mean, the common argument against getting rid of the penny has traditionally been that this hurts low-income families and things like that. And it's certainly something that we should be very sensitive about.

But we're — the practical remedy is to round up to the nearest — right now the nickel. I just think it's a better use of the government's time and energies to make a more valuable coin that you could buy a cup of coffee or a sandwich.

Deema Zein:

What's going to happen with those pennies that are circulating now?

John Feigenbaum:

Well, there is nothing short of billions of these pennies in circulation sitting in jars and all over this country and in the world. So the pennies are still legal tender. So you don't have to rush to the bank to get rid of them. You can hold on to them.

They will still always be worth one penny and perhaps they will be worth more if collectors get super interested in the hobby. But they're always going to be worth the penny. So I think that people will find interest in this. I mean, you have invited me here to your show, which is just — I can't tell you, is wonderful.

And I hope that this sparks an interest in our hobby.

Deema Zein:

John Feigenbaum, thank you so much for joining us today.

John Feigenbaum:

Well, thank you for having me.