Dec 21, 2014 7:52 PM
WSJ takes a look at the cost of producing pocket-change
Jeffrey Sparshott of the Wall Street Journal recently took a look at the cost of producing change at the U.S. mint in an article on WSJ.com.
According to the article, a new report revealed that it cost 1.7 cents to produce a penny and 8 cents to produce a nickel during the 2014 fiscal year.
The article cites the biennial report where it is stated "there are no alternative metal compositions that reduce the manufacturing unit cost of the penny below its face value."
While both of those numbers are down from years past, Sparshott points out that there is a loss of $90.5 million from producing the two.
Despite the heavy losses, the Mint still turns a profit of $289.1 million since it only costs 3.9 cents to make a dime and 9 cents to produce a quarter Sparshott adds.
According to the report, the Mint would save $52.9 million by discontinuing the penny.