U.S. Mint Ceases Production of One-Cent Piece Following 232 Years

The U.S. Treasury Department has unveiled a strategy to phase out the production of the penny by May 2025, and recently, the United States Mint has minted the final one-cent coin ever. The lengthy 232-year span of the penny as a circulating coin has officially concluded. The last coin was ceremoniously produced by United States Treasurer Brandon Beach at a facility located in Philadelphia, with future plans to auction that final penny.

“Today the Mint commemorates 232 years of penny production,” remarked Kristie McNally, acting mint director. “Although general production ends today, the legacy of the penny will persist. As its role in commerce continues to change, its importance in America’s narrative will remain.” Nevertheless, the Mint will carry on producing numismatic versions of the penny in limited amounts for historical and collector interest.

Originally created in 1793, the penny has been part of the American economy since its foundational days. However, it has lost its former luster. The U.S. Mint cites economic and production factors, along with changing consumer habits, as reasons for the cessation of the one-cent coin. To begin with, its production became impractical, with the cost of making each penny climbing from 1.42 cents to 3.69 cents—an approximate 160% rise. Additionally, it has long since lost its purchasing power, as a single cent or even a few cents can no longer buy what they did decades ago.

However, even though production of the penny has ceased, it remains in circulation. The penny will continue to function as legal tender; the issue is that there are excess quantities available, eliminating the need for further production. The U.S. Mint approximates that there are around 300 billion pennies in circulation, significantly surpassing the current market demand.

The existing coins will permit businesses to maintain pricing for goods and services in one-cent increments, although most might opt to round their prices up or down to the nearest five-cent mark. Regardless of what unfolds, its cultural significance is likely to endure. And, whether a coin is available or not, you will always have the option to offer a penny for someone’s thoughts.