The Uncertain Future of the Lincoln Cent
Trump wants to end penny production, but cutting the cent may raise costs on nickels—creating losses for the Mint and opportunities for collectors.
No one is certain if we will see 2026-dated Lincoln cents. Upon learning that the US cent costs more to produce than its face value, President Donald J. Trump demanded production of the denomination to cease. Congress makes the final decision and, as of this writing, has not yet done so. However, cent production for 2025 has been significantly diminished. What needs to be thought through is the ramifications of not only ceasing production but withdrawing the cent from circulation.
Yes, it costs 3.69 cents to produce our 1-cent coin in 2024. This was the 19th consecutive year in which the mint lost money (seigniorage) by continuing to mint the cent. What appears to be lost in the shuffle is that it costs 13.78 cents to strike our 5-cent or “nickel” coin. Should the cent either come into short supply due to a lack of future production, or the cent be completely withdrawn and demonetized, the smallest coin in our pockets would be the 5-cent piece. This would appear to increase the demand for this even costlier coin to be produced.
We would need to mint even more nickels, this coin being at an almost nine cents per coin seigniorage loss! In other words, dumping the cent will likely cost the mint even more than should the cent continue to be issued. We’re coin collectors. We don’t make that decision. We look to see if low mintage coins might be able to be found in pocket changed. Right now, it looks like a lose-lose for the mint but perhaps a win for collectors.
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