that US Mint in the 2024 Annual Report ReportTables include penny and nickel production costs. As you can see in the bottom row, the total cost of making 1 penny is now 3.69 cents. The cost of making nickel is 13.78 cents. The cost of making coins and nickel is higher than the face value.
If penny and nickel were removed, there was a long concern that the price would go up to 10 cents. However, as inflation gradually increases the price level, the impact of such changes does not appear to be big if it started or big. In addition, as the share of all transactions and credit cards increases, the reason why the supplier should raise the price at all is not clear (except those who pay cash).
Perhaps it is strange that there is a “coin lack” during the 2021 infectious disease. What seems to be happening is that people have not re -circulated coins for future purposes while people continue to receive coins due to changes in cash purchases. Many people like me seem to have a coin jar. Among the lack of coins, the number of officially circulating coins, including coin jars, was quite high. But in 2024, the number of coins of the circulation plummeted. In my opinion, changes in spending documents using credit cards and debit cards to occupy more parts of all purchases means that economic transactions can occur well with fewer coins.
Whether the US government officially decides to abolish coins and nickels seems to be decreasing.
