LEXINGTON, Ky. (LEX 18) — The U.S. Treasury has officially ended production of the one-cent coin after 232 years, marking the end of an era for America's smallest denomination currency.
The U.S. Mint announced this week that it has discontinued production of the penny, a move first signaled by the Trump administration six months ago. The decision comes as the cost of producing pennies exceeds their actual value.
According to the Treasury, it costs nearly 4 cents to make just one cent.
Christian Ray, a gas station customer, expressed surprise at the news.
"That's crazy." Ray said. "That doesn't even make sense…literally."
The Treasury Department cited both expense and irrelevance as primary factors in the decision. With the discontinuation of the penny, the U.S. Mint expects to save approximately $56 million per year in production costs.
Bill Thielen, another gas station customer, supported the move.
"I think it's probably a good decision, it costs too much to make," Thielen said.
The penny's purchasing power has diminished since its introduction in 1793. Today, even the cheapest items at gas stations, like a bag of chips, cost 59 cents – far from the penny's original purchasing power.
Jeff Garrett, a coin collector and expert who founded Mid-American Rare Coin Galleries, explained the penny's historical significance.
"A penny might buy a pound of flour or something like that, it was substantial," Garrett said. "In those days, people worked for less than a dollar a day, skilled people, so that would give you a hint, it would've had substantial buying power."
Garrett, who has collected coins since childhood and has bought and sold nearly every U.S. coin ever issued, sees opportunity in the penny's discontinuation.
"I'm lucky I get to do a hobby for a living," Garrett said.
He explained that by 1856, rising copper prices caused the penny to downsize, which began coin collection as we know it today. Garrett believes the penny's elimination could spark new interest in coin collection.
"My guess is, because of the publicity the elimination of the penny will get, I think coin collecting will get a new look from a lot of people, people will become aware of it," Garrett said. "So I think of it not as a negative, I think of it as a big positive."
For those with existing penny collections, the coins may hold sentimental and potentially monetary value. Yet, change, even the kind in your pocket, is inevitable.
"My grandmother used to save coins and I had some pennies really worth something…maybe I'll find some new ones," Thielen said.
Consumers can still use existing pennies, though some retailers are beginning to round transactions up or down. Currently, there is no official rounding rule in place.
The U.S. Mint has committed to making pennies for collectors, they just won't be produced for circulation.
For those interested in coin collection, you can learn about the Blue Grass Coin Club here.
