The copper ones (pre-1982) have been worth more than one cent in melt value for a while. But the newer, “cheaper” zinc ones (post-1982) are also now worth more than one cent each in melt value! With zinc trading at around $1.80 per pound, one hundred 97.5% zinc pennies are now worth about $1.01 in melt.
Zinc-plated Steel cents (like the ones minted in 1943) are still worth less than one cent melted. (Steel is only about 30 to 40 cents a pound.)
This may not be here to stay permanently for now — just like the Dow only peeked over the landmark 12,000 today before settling below — but likely the high price of zinc will assert itself as inflation continues.
As cents get more valuable, they will get hoarded. Bad money drives good money out of circulation. It's not the easiest store of value, but it's an easy store of value to obtain, so people are likely to do it. For myself, I'm separating out and keeping nickels and copper pennies as I get them, but I'm not going to the bank for rolls of pennies and nickels. I may start doing it with the zinc pennies until it gets too cumbersome; they're a less dense store of value than even the copper pennies.
It will be interesting to see how the U.S. government reacts to this. Will they stop producing cents? Change the composition? Buy them back at a premium? Make melting illegal? I don't know, but I don't think they'll continue putting coins that are worth more than face value into circulation.
That's hilarious! I wonder what they'll start making pennies out of? I collect coins (well used to) and I've got a bunch of money from when they still used silver instead of nickel in dimes, quarters and nickels.
Paper bills (i.e. $5, $10, $20, $50, $100) cost the mint only 4.5-5.5 cents per bill (yes, less than 6 cents per bill) depending on the denomination. So the gov't "makes" a "profit" on those bills. I've noticed that the media and people get their panties in a bunch over a penny, nickel, or dime costing more than the face value, but never mention the "profit" the gov't makes on paper bills which more than cancels out many, many times over any losses incurred stamping out metal coins.
"It will be interesting to see how the U.S. government reacts to this."
Here's your answer.
Looks like they reacted quickly and harshly.