In its 2024 Annual Report, the United States Mint disclosed that manufacturing costs increased across all coin denominations. For the nineteenth consecutive year, the unit cost of producing pennies and nickels exceeded their face values.
The U.S. Mint struck nearly 5.9 billion coins for circulation during the fiscal year, a decline from 10.5 billion in the previous year.
"FY 2024 circulating coin shipments to the Federal Reserve Bank decreased by 4.6 billion units (44.1 percent) to a total 5.9 billion coins compared to last year. The year saw decreases in shipments of all denominations except the half-dollar, which resulted in decreased revenue and seigniorage compared to last year," the U.S. Mint’s annual report said.
The Mint generates revenue from selling coins at face value when shipped to Federal Reserve Banks for circulation.
Cost to Make Pennies and Nickels
In FY 2024, the U.S. Mint’s cost to produce, manage, and distribute the 1-cent coin rose to 3.69 cents from 3.07 cents, a 20.2% increase. The unit cost for the 5-cent coin climbed to 13.78 cents from 11.54 cents, up 19.41%.
On Feb. 9, President Trump ordered an end to penny production, calling it a move to reduce "wasteful" government spending.
"For far too long the United States has minted pennies which literally cost us more than 2 cents," Trump said in a Truth Social post. "This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nations budget, even if it’s a penny at a time," Trump wrote.
On Jan. 21, a post on X by DOGE (Department of Government Efficiency) made a similar argument.
"The penny costs over 3 cents to make and cost US taxpayers over $179 million in FY2023," DOGE stated. "The Mint produced over 4.5 billion pennies in FY2023, around 40% of the 11.4 billion coins for circulation produced. Penny (or 3 cents!) for your thoughts."
Despite lower production totals driving up per-unit costs, the Mint saw some relief in the prices of two of the three metals used in coin production.
"FY 2024 average spot prices for nickel decreased 27.1 percent to $17,107.57 per tonne, average zinc prices decreased 4.7 percent to $2,640.76 per tonne and average copper prices increased 5.4 percent to $8,889.08 per tonne," the U.S. Mint’s report noted.
Lincoln cents are composed of 2.5% copper, with the remainder in zinc. Five-cent coins contain 25% nickel, with the balance in copper. Dimes, quarters, and half dollars each consist of 8.33% nickel, with the rest in copper.
Cost to Make Dimes, Quarters and Half Dollars
Unlike cents and nickels, the U.S. Mint remained profitable in producing dimes, quarters, and half dollars, as their manufacturing and distribution costs remained below their face values.
In FY 2024, unit costs increased:
- Dime: 5.76 cents, up from 5.30 cents (8.7%)
- Quarter: 14.68 cents, up from 11.63 cents (26.2%)
- Half dollar: 33.97 cents, up from 25.98 cents (23.5%)
The following tables summarize the Mint’s costs for the cent through half dollar in fiscal years 2021, 2022, 2023, and 2024.
FY 2024 Unit Cost to Produce and Distribute 1c, 5c, 10c, 25c, and 50c Coins
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | |
| Cost of Goods Sold ($) | 0.0300 | 0.1100 | 0.0449 | 0.1161 | 0.2710 |
| Sales, General & Administrative ($) | 0.0066 | 0.0268 | 0.0121 | 0.0293 | 0.0649 |
| Distribution to Reserve Banks ($) | 0.0003 | 0.0010 | 0.0006 | 0.0014 | 0.0038 |
| Total Unit Cost ($) | 0.0369 | 0.1378 | 0.0576 | 0.1468 | 0.3397 |
FY 2023 Unit Cost to Produce and Distribute 1c, 5c, 10c, 25c, and 50c Coins
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | |
| Cost of Goods Sold ($) | 0.0272 | 0.1003 | 0.0463 | 0.1004 | 0.2203 |
| Sales, General & Administrative ($) | 0.0032 | 0.0138 | 0.0061 | 0.0145 | 0.0339 |
| Distribution to Reserve Banks ($) | 0.0003 | 0.0013 | 0.0006 | 0.0014 | 0.0056 |
| Total Unit Cost ($) | 0.0307 | 0.1154 | 0.0530 | 0.1163 | 0.2598 |
FY 2022 Unit Cost to Produce and Distribute 1c, 5c, 10c, 25c, and 50c Coins
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | |
| Cost of Goods Sold ($) | 0.0243 | 0.0917 | 0.0442 | 0.0975 | 0.1286 |
| Sales, General & Administrative ($) | 0.0026 | 0.0109 | 0.0054 | 0.0120 | 0.0286 |
| Distribution to Reserve Banks ($) | 0.0003 | 0.0015 | 0.0007 | 0.0016 | 0.0143 |
| Total Unit Cost ($) | 0.0272 | 0.1041 | 0.0503 | 0.1111 | 0.1715 |
FY 2021 Unit Cost to Produce and Distribute 1c, 5c, 10c, 25c, and 50c Coins
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | |
| Cost of Goods Sold ($) | 0.0181 | 0.0744 | 0.0386 | 0.0843 | 0.0917 |
| Sales, General & Administrative ($) | 0.0026 | 0.0095 | 0.0047 | 0.0106 | 0.0167 |
| Distribution to Reserve Banks ($) | 0.0003 | 0.0013 | 0.0006 | 0.0014 | 0.0083 |
| Total Unit Cost ($) | 0.0210 | 0.0852 | 0.0439 | 0.0963 | 0.1167 |
Seigniorage – the difference between a coin’s face value and its production and distribution costs – generated $35.6 million from dimes and $165.6 million from quarters in FY 2024. The U.S. Mint transfers seigniorage to the Treasury General Fund to help finance the national debt.
Relatively few half dollars were produced for circulation compared to other denominations, yielding $8.4 million in seigniorage.
In contrast, cents and nickels have operated at a loss since 2006.
Unit Costs and Seigniorage for Cent and Nickel from 2005 to 2024
| Fiscal Year | Lincoln Cent Unit Cost | Jefferson Nickel Unit Cost | Combined 1c and 5c Seigniorage (in millions) |
| 2005 | 0.0097 | 0.0484 | $4.40 |
| 2006 | 0.0121 | 0.0597 | ($32.90) |
| 2007 | 0.0167 | 0.0953 | ($98.60) |
| 2008 | 0.0142 | 0.0883 | ($47.00) |
| 2009 | 0.0162 | 0.0603 | ($22.00) |
| 2010 | 0.0179 | 0.0922 | ($42.60) |
| 2011 | 0.0241 | 0.1118 | ($116.70) |
| 2012 | 0.0200 | 0.1009 | ($109.20) |
| 2013 | 0.0183 | 0.0941 | ($104.50) |
| 2014 | 0.0166 | 0.0809 | ($90.50) |
| 2015 | 0.0143 | 0.0744 | ($74.40) |
| 2016 | 0.0150 | 0.0632 | ($66.80) |
| 2017 | 0.0182 | 0.0660 | ($89.80) |
| 2018 | 0.0206 | 0.0753 | ($119.00) |
| 2019 | 0.0199 | 0.0762 | ($102.90) |
| 2020 | 0.0176 | 0.0742 | ($101.00) |
| 2021 | 0.0210 | 0.0852 | ($144.60) |
| 2022 | 0.0272 | 0.1041 | ($171.00) |
| 2023 | 0.0307 | 0.1154 | ($178.60) |
| 2024 | 0.0369 | 0.1378 | ($103.00) |
The U.S. Mint produces and issues circulating coins to Federal Reserve Banks in quantities that support their distribution to commercial banks and other financial institutions. In FY 2024, production declined for all denominations except the half dollar. During the fiscal year, the Mint shipped:
- 3.172 billion cents, down 23.3% from the previous year
- 202 million nickels, down 85.7%
- 840 million dimes, down 68.5%
- 1.605 billion quarters, down 29.4%
- 52 million half dollars, up 188.9%
Combined, these shipments totaled 5.871 billion coins, a decline of 4.639 billion (44.1%) from the 10.51 billion coins delivered in FY 2023.
The Federal Reserve pays face value for circulating coins, and in FY 2024, the Mint’s revenue from these sales totaled $553.3 million, down 42.1% from $956.1 million in FY 2023.
2024 Coin Shipments, Costs and Seigniorage
(coins and dollars in millions)
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | Mutilated & Other | Total | |
| Coins Shipments | 3,172 | 202 | 840 | 1,605 | 52 | – | 5,871 |
| Value of Shipments | $31.7 | $10.1 | $84.0 | $401.3 | $26.2 | – | $553.3 |
| Gross Cost | $117.0 | $27.8 | $48.4 | $235.7 | $17.8 | $7.1 | $453.8 |
| Seigniorage | ($85.3) | ($17.7) | $35.6 | $165.6 | $8.4 | ($7.1) | $99.5 |
2023 Coin Shipments, Costs and Seigniorage
(coins and dollars in millions)
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | Mutilated & Other | Total | |
| Coins Shipments | 4,136 | 1,416 | 2,666 | 2,274 | 18 | – | 10,510 |
| Value of Shipments | $41.4 | $70.8 | $266.6 | $568.4 | $8.9 | – | $956.1 |
| Gross Cost | $127.4 | $163.4 | $141.1 | $264.4 | $4.6 | $6.2 | $707.1 |
| Seigniorage | ($86.0) | ($92.6) | $125.5 | $304.0 | $4.3 | ($6.2) | $249.0 |
2022 Coin Shipments, Costs and Seigniorage
(coins and dollars in millions)
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | Mutilated & Other | Total | |
| Coins Shipments | 5,387 | 1,442 | 2,849 | 2,426 | 7 | – | 12,111 |
| Value of Shipments | $53.9 | $72.1 | $284.9 | $606.3 | $3.5 | – | $1,020.7 |
| Gross Cost | $146.9 | $150.1 | $143.3 | $269.2 | $1.2 | ($0.2) | $710.5 |
| Seigniorage | ($93.0) | ($78.0) | $141.6 | $337.1 | $2.3 | $0.2 | $310.2 |
2021 Coin Shipments, Costs and Seigniorage
(coins and dollars in millions)
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | Mutilated & Other | Total | |
| Coins Shipments | 7,613 | 1,736 | 3,066 | 2,274 | 12 | – | 14,701 |
| Value of Shipments | $76.1 | $86.8 | $306.6 | $568.5 | $6 | – | $1,044.0 |
| Gross Cost | $159.7 | $147.8 | $134.6 | $219.2 | $1.4 | $0.1 | $662.8 |
| Seigniorage | ($83.6) | ($61.0) | $172.0 | $349.3 | $4.6 | ($0.1) | $381.2 |
After deducting production costs, which totaled $453.8 million, the U.S. Mint’s circulating profit, or seigniorage, amounted to $99.5 million – $149.5 million decline (60%) from $249 million in FY 2023.
The federal government’s fiscal year runs from October 1 to September 30.
Uh-oh,
The tried & true Seigniorage Scam rears its head once again.
LOL..
Got to be the one of your most asinine things you’ve said, which is hard for you to do as there’s been so many. Seigniorage is a scam? You’re saying then that money is a scam, because all money has seigniorage, even those bills that you must detest in your wallet. What makes it money is who backs it up and makes it legal tender. But since everything this Prez does or is about is a scam, our money will likely just become another one in his hands. You know what’s really a scam? All those coins encased in plastic… Read more »
SG&A expenses were the issue in all categories for circulating and Overall for numismatic for the percentage increase from FY2023 to FY2024.
Accruals were recorded in September 2024.
SG&A on Bullion was fine.
pretty sure SG&A is allocated after-the-fact to each product line – it shouldn’t be reflective of actual costs for that product (if it did, that should go into COGS). SG&A are things that are indirect common costs that apply to all products – things like HR, management staff, janitors, web site development, lunchroom, etc. sure there are squishy costs like advertising that could go into either bucket, but the mint doesn’t break those buckets down to figure that out. of course the overall total SG&A should not increase much from year to year without some large new product line or… Read more »
On the circulating side…
SG&A went Up $4.4M (5.3%) on 44.1% less coins shipped.
Shipped vs. minted could be a problem…
SG&A Increase Y/Y percentage from FY2023 to FY2024:
Penny Up 106%
Nickel Up 94%
Dime Up 98%
Quarter Up 102%
Half dollar Up 91%
Overall Up 102%
USM Layoffs are Looming…
Collectors will be fortunate if any of the annual core sets remain intact.
If any annual core sets remain available, their prices will be significantly higher.
In the past 13 fiscal years…
Annual core sets have Lost a combined $179.8M…
How about the USM partnering with DC Comics for Gold Coins & Silver Medals this summer?
As far as I can tell, Congress was not involved…
Scrapped? Or will they take whatever money that will be left on the table for themselves?
Since these are Mint discretion, I would assume the Mint has an exit strategy that would be profitable, however, the new administration may want to go in a different direction entirely…
Yes, and it’s an aggregate number. Do you know what that means? Also, the sets are legislated. Do you know what that means, too?
I think that’s a clear DOGE target…. & Not including the losses when subsequently sold by ‘collectors’
…
Talking out of your arse again. Coins made for annual sets are not counted as circulating coins.
From the Mint:
“Uncirculated Coins: Are hand-loaded into the coining press and struck on specially burnished blanks, yet have a soft, matte-like finish appearance. These coins:
I was kind of looking forward to the 2026 semiquincentennial penny design, that would have been better timing to end the penny on a high note.
Agreed.
well, the government at times doesn’t make any sense, but now it really won’t make any cents
Want to have some real fun? Pay for something with a $2 Bill. Most will ask if it is real ….
I see the mint site now has an uncut sheet of $2 bills for sale. I may snag a page if they become available again,
Craig — I understand that most banks have access to $2 bills but you have to ask for them. I asked (read that as “demanded”) that my “personal banker” at BofA get crisp 100 count BEP packs of $1, $2, and $5 bills for me a number of years ago … and no problem but maybe a little bit of wait to get. I give them out for special occasions. On the pack of $1 bills I was very fortunate to get one with ALL bills ending in 20xx. It is one of my favorites to give out for birthdays… Read more »
Whoops. Typo. My buddy was born on June 7th 1945.
As a professor who teaches managerial and cost accounting, I find analyses like this frustrating. We need to know what the fixed costs are of making these coins, not just the overall cost. Because the reality in manufacturing is that we allocate the fixed costs and the way that we allocate, it determines what the so called cost of making the product is. But fixed costs oftentimes are not avoidable, and if we stop making the pennies, the fixed costs that are applied to the pennies would be applied to every other coin. So what you’re looking at here is… Read more »
As much as we are paying for proof and uncirculated sets. It would be nice to leave the cent at least on those sets in the future. Then, at least those would become a somewhat collectible.
If the mint is smart, they will still include pennies in the proof and mint sets. They will sell a lot more of those sets.
I agree, but they need to go back to the original metal composition of the cent.
It would be nice for the mint to do the last million pennies like Canada did back in 2012. Immediate sell out I’ll bet!