The cost for manufacturing U.S. coins for circulation decreased last year, excluding the dime which remained unchanged, the United States Mint disclosed in its 2020 Annual Report. Notably, however, the unit cost for both cents and nickels was above their face values for a fifteenth year in a row.
In FY 2020, the toll to make, administer and distribute the 1-cent coin retreated to 1.76 cents from 1.99 cents while the cost for the 5-cent coin eased to 7.42 cents from 7.62 cents.
Lower prices for copper and zinc helped in keeping costs down, although nickel prices did increase.
"Compared to last year, FY 2020 average spot prices for nickel increased 5.6 percent to $13,666.51 per tonne, whereas average copper prices decreased 3.6 percent to $5,856.52 per tonne, and average zinc prices decreased 15.4 percent to $2,206.15 per tonne," the U.S. Mint noted.
Lincoln cents have a composition of 2.5% copper with the balance zinc. Five-cent coins are minted in 25% nickel with the balance copper. Dimes and quarters are each composed in 8.33% nickel with their balance copper.
Cost to Make Dimes and Quarters
Unlike for cents and nickels, the U.S. Mint turned a profit with dimes and quarters because the cost of making them was lower than their face values. In FY2020, the unit cost for the quarter decreased to 8.62 cents from 9.01 cents while the dime’s unit cost was unchanged at 3.73 cents.
The following two tables summarize U.S. Mint costs for the cent through quarter in fiscal years 2019 and 2020.
FY 2020 Unit Cost to Produce and Distribute 1c, 5c, 10c, and 25c Coins
|Cost of Goods Sold ($)||0.0151||0.0653||0.0326||0.0760|
|Sales, General & Administrative ($)||0.0022||0.0080||0.0042||0.0091|
|Distribution to Reserve Banks ($)||0.0003||0.0009||0.0005||0.0011|
|Total Unit Cost ($)||0.0176||0.0742||0.0373||0.0862|
FY 2019 Unit Cost to Produce and Distribute 1c, 5c, 10c, and 25c Coins
|Cost of Goods Sold ($)||0.0168||0.0659||0.0317||0.0777|
|Sales, General & Administrative ($)||0.0029||0.0095||0.0051||0.0114|
|Distribution to Reserve Banks ($)||0.0002||0.0008||0.0005||0.0010|
|Total Unit Cost ($)||0.0199||0.0762||0.0373||0.0901|
In profit from seigniorage — the difference between the face value and cost of producing circulating coins, the dime in FY 2020 realized $175.6 million while the quarter brought $476.3 million. (The U.S. Mint transfers seigniorage to the Treasury General Fund to help finance national debt.)
In contrast, the two smallest U.S. coins have lost money since 2006.
Unit Costs and Seigniorage for Cent and Nickel from 2005 to 2020
|Fiscal Year||Lincoln Cent Unit Cost||Jefferson Nickel Unit Cost||Combined 1c and 5c Seigniorage (in millions)|
The U.S. Mint produces and issues circulating coins to Federal Reserve Banks in quantities to support their service to commercial banks and other financial institutions. FY 2020 saw production increases in all denominations compared to the prior year. The Mint delivered a total of:
- 8.174 billion cents, up 11.7% from the previous year;
- 1.598 billion nickels, up 38.6% from the previous year;
- 2.801 billion dimes, up 26.5% from the previous year; and
- 2.906 billion quarters, up 63.0% from the previous year.
The four denominations combined to 15.479 billion coins, registering a 24.2% increase from the 12.466 billion coins delivered in FY 2019. The Fed pays face value for each coin they receive and, as such, the U.S. Mint’s FY 2020 circulating revenue for coinage totaled $1,168.5 million, up 46.4% from $798.1 million in FY 2019.
2020 Coin Shipments, Costs and Seigniorage
(coins and dollars in millions)
|One-Cent||Five-Cent||Dime||Quarter||Mutilated & Other||Total|
|Value of Shipments||$81.8||$79.9||$280.1||$726.5||–||$1,168.5|
After subtracting the year’s cost to produce the coins, which totaled $618.6 million, the U.S. Mint’s circulating profit or seigniorage totaled $549.9 million, representing an increase of $231.6 million, or 72.8%, from $318.3 million in FY 2019.
Good read! Thank you coin news! Let’s be honest, even Rush said the national debt is a gimmick. From what I gather there is a ton of value in our coins.
I dont think this is the bitcoin forum, lol but yes I’m holding strong. Tbh I hate tesla I drive a gas guzzler, Thank You America.
The price of copper and of nickel is very important for the production of pennies and nickels for circulation. Despite the prohibition of melting or export of pennies and nickels, if the price of copper and nickel reaches a certain level, it will be necessary to stop making those coins or change their metal content…. the behavior of bitcoin prices and other such things doesn’t have much relevance, since the producers and consumers of copper and nickel deal in physical metal and not mythical digital whatever… you don’t manufacture stainless steal pots, or copper electrical components out of digital fantasy.
Why does the government keep losing money on making cents? it’s been like this for years, the mint winds up charging more from collectibles to make up the shortfall. Just make them for collectors like they did with dollar coins. Stores can round up to next nickel when making change – it literally costs more to count out pennies when making change than they are worth.
Who cares if it cost 2 cents to make a cent. It also cost them 7 cents to make a one hundred dollar bill. I think they are making up for it. LOL
Ok let’s take a step back you just said the hundred dollar bill is not even worth the paper its printed on, and then you question (questions are good) the physical manifestations of BTC. Both are built on Trust. There is no amount of physical backing that 100. We just trust it. BTC will go away when the internet goes away. We trust the internet doesnt go away. Please keep this a physical coin forum. LIBERTY! Keep pondering!
I knocked a 5 cent coin into the bin next to my desk, and couldn’t be bothered reaching down to pull it out. Eventually guilt got to me and i fished around the bottom of the bin liner and retrieved it, but I don’t know why. My country has basically gone cashless, and its nearly impossible to get rid of 5c coins.
I got my Tuskegee, D, in change today! Still no V75 quarters though! Some people
I’m buying the $100 bag of Tuskegee airman for $36.75 lol they’re still making money
its not a $100.00 bag its a 100 coin bag
If everyone dumped the pennies sitting in jars in closets around the country back into circulation there would be no reason to mint pennies for years.
They can mint all the cents we want and there would be another coin shortage eventually for some unforsaken reason. Hmmm, after all, these coins, even a penny has more value than people utilize. If a penny is 1.7 cents to create today, but it’s used x amount of days x amount of times the value is astronomical. Almost every day I can get pennies over 50 years old, if that penny is used 100 times a day, everyday, its adds up to close to $20,000 in transactional value over 55 years or so, yeah yeah there is variables not… Read more »
Kaiser — I gave the young lady at my local Mexican Food Drive Thru 7 rolls of pennies and 4 loose ones to pay for my $3.54 Taco Tuesday order this week. She looked confused and said “excuse me” while she went back to talk with her supervisor … as she apparently had never seen rolls of coins. She then asked me “how much change do I owe you?” Next week I’ll give her some additional education by using a roll of Nickels, 3 rolls of pennies, and 4 loose ones. I just don’t think she’s up to making change… Read more »
Australia got rid of our 1c and 2c coins back in 1992 and the sun still rose in the east. People will still advertise a product for $99.99 and it will just get rounded to $100.00 If it is $99.97, it is rounded to $99.95 If you find an old jar of 1c and 2c coins, you can take them to the bank and get face value paid to you. I’m certainly not telling America what to do, and as a coin collector, I really don’t want the physical currency to disappear, however it makes life much easier moving away… Read more »