How much is a penny? Apparently, it’s 1.7 cents. And the value of a nickel? A dime.
Those are the U.S. Treasury costs of minting coins as metal prices rise in the global market, according to congressional lawmakers who will hold a hearing today on the lopsided ledger of making money.
Since 2003, copper and nickel prices have shot up 300 percent, while zinc prices have jumped 450 percent, according to a subcommittee on the House Financial Services Committee. The penny is composed of copper and zinc, and the nickel is made of – what else? – nickel.
But soon, the makeup of these coins could change. The subcomittee on domestic and international monetary policy, trade and technology will hear testimony today on lower costs metals to mint the coins. It’s one proposal under the Coin Modernization and Taxpayer Savings Act of 2008.
Changing the metals could save Treasury about $100 million a year without compromising the utility of these coins, estimated to have a 30-year life, according to a report by the U.S. Mint.