Saturday, May 20, 2006

The cost of making money

PennyWith all of the rising metal costs in this country, in now costs more to make pennies and nickels, than they are worth. See Story

-For the first time in U.S. history, the cost of manufacturing both a penny and a nickel is more than the 1-cent and 5-cent values of the coins themselves. Skyrocketing metals prices are behind the increase, the U.S. Mint said in a letter to members of Congress last week.

-The Mint estimates it will cost 1.23 cents per penny and 5.73 cents per nickel this fiscal year, which ends Sept. 30. The cost of producing a penny has risen 27% in the last year, while nickel manufacturing costs have risen 19%.

Last year, the Mint's coin-making profit was $730 million. Mint officials estimate the added penny and nickel expenses will reduce the Mint's profit this year by $45 million.

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