US Coinage Hoard/Spend Index: Value of Metal in US Coins

Times were, when kids asked their parents why nickels were called "nickels," they got an answer about how the coin was once made out of the metal nickel, even though they are now made primarily from copper.

You will soon know how old you are when you tell your kids about buying anything with pennies, nickels, quarters, or dimes, and they ask you what the hell a penny, nickel, quarter or dime is, as that type of money won't exist anymore. Then, you will remember that metallic currencies were phased out around 2015 when the price of the metals used to make those coins was prohibitively expensive, and you will kick yourself for being old.

I have written for about the value of the zinc in pennies, and said that the metal in a penny would be worth more than a penny when zinc hit about $3,200 per metric ton. (Turns out that figure wasn't exactly correct - new calculations say, depending on the price of copper, that this would be around $3,900 per metric ton.)

I now realize that we are probably just a few years away from a scenario where the US decides that all money is either paper or electronic. Why would I say this, after calculating for myself the prices of just a few coins?

Take a look at the US Coinage "Hoard/Spend Index" below (a DDO exclusive!). Coins to hoard have a metal value greater than the currency value. Coins to spend have a metal value less than the currency value.

Conclusion? Dimes and quarters still have a few years left as coins. However, pennies and nickels have either outlived their usefulness, or are close to it. - Ed

Note: I am not factoring in the cost of producing the coins, and only have pricing for high grade metals. Metal prices:

Comments

[clinton bowen]

I like where you are going with this idea. Well in order to know the the intrinsic price of penny, nickel, or other coin, it would probably be best to ask an inventory manager or an accountant at the US mint.

I say comeback to this idea but asking for/finding out the price per ton of low grade metals.

[US Gold Coins]

As a coin collector, I hope that the United States doesn't stop minting coins. Very fascinating article though.

[TechFarm]

Interesting article. I've been hearing from many places that the metals in a Penny is worth more than its value as US currency.

I decided to calculate the value of the Penny
using today's metal prices (copper and zinc):

http://techfarm.blogspot.com/2008/04/is-us-penny-worth-more-as-metal-copper.html

[Numismatic Rare Coins]

Good article. I agree with you that we are need to phase out the lower denomination coins. When I live in Germany, The US Base did not use pennies. too expensive to ship over.