Small coins -- pro or con

[braumeister]

I often see people advocating for eliminating pennies (and sometimes nickels). Since we have a very experienced and knowledgeable membership here, I would like to know your thoughts.

A bit of background:
It costs over three cents to produce a penny (mostly for the zinc and copper in it), and over 11 cents to produce a nickel.
However, they last for many years, so it may actually be cost effective if they are in fact desired.

Other countries have gone through this question and some have answered in the negative:

• Australia eliminated its one and two cent coins in 1992
• New Zealand eliminated its one and two cent coins in 1990, and its five cent coin in 2006
• Finland eliminated its one and two cent coins in 2002
• Mexico eliminated its five centavo coin in 2002
• Netherlands eliminated its one and 2.5 cent coins in 1980 and replaced all with the euro in 2002
• Sweden eliminated its one and two krona coins in 2010
• Canada eliminated pennies in 2012
• Chile eliminated its one and five peso coins in 2017
• South Korea is trying to eliminate its one and five won coins

Although I would be happy to see the penny gone, I have seen quite a few arguments for keeping it:

• Some charities rely on very small donations and eliminating it would reduce them
• Rounding to the nearest nickel could be a hidden cost to consumers
• Some people feel it would be disrespectful to Abraham Lincoln

 

[joesxm3]

I hoard nickels so I would like to see them eliminated so I can convert the copper in all my hoard into a small fortune just like pre-1965 silver dimes.

 

[MC Rider]

Abe still has the $5 bill. Ditch pennies.

 

[braumeister]

I hoard nickels so I would like to see them eliminated so I can convert the copper in all my hoard into a small fortune just like pre-1965 silver dimes.

Funny.
My grandmother collected 1938 nickels (the last year of the buffalo nickel), and everybody in the family gave them to her all the time. When she died, there was a large container containing thousands of them, worth 5¢ each.

 

[CaptTom]

Ditch pennies. Nickels can go too. Start using $1 coins more, and add $2 coins like Canada did.

You could still price things at 99 cents and round the total at the end, like they do with .9 on gas pumps.

 

[Qs Laptop]

There was an excellent article in the NY Times this weekend about the huge amounts of money that is wasted every year maintaining the use of pennies. Get rid of them!

 

[Midpack]

The “melt value” of a penny is 5-6 cents, not to mention production and distribution costs. Should have been phased out a long time ago. On the bright side, the growth of “cash only” will dramatically reduce demand for coins and currency…fine by me.

 

[GrayHare]

Eliminating the nickel leaves no way to give change of 15 cents. Get over that by rounding to the nearest quarter, which is the smallest coin worth fussing with if the dollar is not revalued. Current melt values are at https://www.coinflation.com/

 

[Gumby]

There was an excellent article in the NY Times this weekend about the huge amounts of money that is wasted every year maintaining the use of pennies. Get rid of them!

Here's a free link: America Must Free Itself from the Tyranny of the Penny

 

[MC Rider]

Drill holes in your pennies. They make cheap washers.

 

[MichaelB]

My poll option is both. I would add, not at the same time.

First, get rid of the penny. Wait a couple of years so it can work its way through the economy, then get rid of the nickel.

 

[Sunset]

The “melt value” of a penny is 5-6 cents, not to mention production and distribution costs. Should have been phased out a long time ago. On the bright side, the growth of “cash only” will dramatically reduce demand for coins and currency…fine by me.

Buy a million pennies from the mint, melt them and sell the metal, pocket $40,000 profit.

Seems so obvious, nobody would know if someone is doing it.

I voted get rid of both, and do like Canada bring in $1 and $2 coins (we already have a $1 coin), and stop printing paper bills for $1 and $2.

The larger coins are needed for coin machines.

 

[joesxm3]

When they decide to issue the new dollar and have you trade in 10 old dollars for 1 new dollar, they won't bother with coins so all of my nickels will be worth new$0.50.

 

[badatmath]

I would not like $1 coins at all. Coins are too heavy and fall out of pockets easily.

Mostly I use credit and the places I get coins back I use it at the self checkout next time I go and then charge the rest so I don't accumulate more than a few coins at a time.

 

[Texas Proud]

Just to be fair... they still produce a 1 Yen coin that is worth...

0.00691 USD

I had read somewhere that they still do transactions in less that a yen, but that was years ago... not sure now...

So not all countries have eliminated their lowest coins...

OHHH, ETA... I lived in London for just over a year and hated the 1 and 2 pound coins... I would hate to have a $1 or $2 coin... even though our $1 coin is smaller...

 

[JoeWras]

Bring back the half cent!

 

[Gumby]

I still lament the death of the farthing and the ha'penny.

 

[Spock]

Keep them both if for nothing else than a tangible reminder of how devalued our money is becoming.

 

[GrayHare]

"the first million new dollars are the toughest"

 

[obsessed]

I rarely use cash and when I do, any change I receive just goes into a jar to sit for eons so I'm effectively rounding up to the nearest dollar anyway.

 

[Koolau]

We have folks here who obsess over getting an extra 1 % on a CD or MYGA. They get the card that gives 2 cents back instead of 1 cent. But then they're ready to take a 1% or 2% loss on every 99 cent or $1.03 purchase. How much sense does that make? Heh, heh, I take the pennies from the "take a penny" dish when I pay cash and need the penny or two. (No. I don't steal the pennies from the dish.)

Keep the pennies. Keep the nickles. Keep cash.

 

[Car-Guy]

Keep them both.... Oh, and bring back $500 and $1000 bills.

 

[Qs Laptop]

We have folks here who obsess over getting an extra 1 % on a CD or MYGA. They get the card that gives 2 cents back instead of 1 cent. But then they're ready to take a 1% or 2% loss on every 99 cent or $1.03 purchase. How much sense does that make? Heh, heh, I take the pennies from the "take a penny" dish when I pay cash and need the penny or two. (No. I don't steal the pennies from the dish.)

Keep the pennies. Keep the nickles. Keep cash.

Oh? When was the last time you (or anyone) bought something that cost $1.03?

Besides, if it cost $1.02 the purchase price would be rounded down to $1.00, and you would be up 2%. Over a year, 5 years, 10 years, etc. it would even out to be a net effect of 0% difference.

 

[Koolau]

Oh? When was the last time you (or anyone) bought something that cost $1.03?

Every time I bought something that cost a bit less than a dollar and the state sales tax (or in my case, the 4.73% GET tax added to $1.03.) Not unusual.

Besides, if it cost $1.02 the purchase price would be rounded down to $1.00, and you would be up 2%. Over a year, 5 years, 10 years, etc. it would even out to be a net effect of 0% difference.

I'm not interested in the times I get the advantage. With a good computer tweaking prices, one can assure that never happens.

 

[Texas Proud]

Oh? When was the last time you (or anyone) bought something that cost $1.03?

Besides, if it cost $1.02 the purchase price would be rounded down to $1.00, and you would be up 2%. Over a year, 5 years, 10 years, etc. it would even out to be a net effect of 0% difference.

Who makes the rules? IOW, I can see where they say if it cost even 1 penny more then it goes up the whole 5 cents... IOW, always round up...