- The penny's production was deemed financially untenable due to rising costs of production.
- The last few minted pennies will be auctioned off.
- The penny has significant cultural symbolism tied to luck and saving.
- Pennies will not be vanishing quickly, as there are around 250 billion in circulation.
A national icon died on Wednesday, when the U.S. Mint produced its last penny.
The last penny was stamped at the Philadelphia U.S. Mint with the aid of Treasurer Brandon Beach during an event on Wednesday. This final minting was part of an effort to retire the coin that costs more to produce than it is worth.
“Although today we say goodbye to the copper 1-cent coin, the penny remains legal tender,” Beach said, according to USA Today. “And we encourage you to use it.”
The last few minted pennies were stamped with a special omega mark and will not be going into circulation. These coins will be auctioned off in the future and could easily bring more than $1 million each, per The Washington Post.
The first penny was authorized by the Coinage Act of 1792, making the coin over 230 years old.
A statement from the U.S. Department of the Treasury said, “Ongoing increases in production costs and the evolution in consumer habits and technology have made its production financially untenable,” per USA Today.
Ending the production of the penny has been led by the Trump administration, but Congress has a pending piece of legislation that would formalize the plan. The “Common Cents Act” would round cash transactions to the nearest 5 cents.
The penny’s impact in American culture
Though a penny alone won’t buy you almost anything today — not even penny candy — it has incalculable cultural value. Over more than two centuries, the penny has deeply embedded itself into culture, with it symbolizing luck and being a part of many common sayings and phrases.
People trying to save money will “pinch pennies,” and the phrase “pennies from heaven” still describes an unexpected windfall.
If someone sees a penny on the ground, they should pick it up to receive a day of good luck.
The penny is also known as the going rate for thought, and the phrase “a pretty penny” is still commonly said.
The word penny is also a part of film titles such as “Penny Serenade” and the names of songs including “Penny Lover.”
A popular type of shoe, the penny loafer, also used the name of the coin.
A look at the long life of the penny
The first penny — officially known as the cent — was struck in 1787 and featured a sundial design that was dreamt up by Benjamin Franklin, per NBC News.
In 1793, the U.S. Mint took over production of the coin, one year after Congress passed the Coinage Act authorizing the currency. Alexander Hamilton, the first secretary of the Treasury, is considered the father of the penny and other U.S. coins.
The first official pennies were made of copper and were known as the “Flowing Hair” cent, because it pictured a woman representing liberty on one side and 15 chain links on the other side.
A smaller penny with a flying eagle design on one side and a wreath on the other was introduced in 1857. This coin was 88% copper and 12% nickel.
The penny was revamped again in 1859 with an “Indian Head” design on one side, according to NBC News.
It wasn’t until 1909 that the iconic President Abraham Lincoln profile appeared on the penny to mark what would have been his 100th birthday.
The other side of the coin has had a number of design variations, including wheat stalks, the Lincoln Memorial and most recently a Union shield, per The New York Times.
In 1982 the penny, which is known for its copper color, started being made out of 97.5% zinc and 2.5% copper. The final coins minted this week still had the same make up of zinc and copper.
Preceding the American penny in death were the half cent (1793-1857) and the Canadian penny (1858-2012). A number of other countries have gotten rid of their smallest coin denomination, but the British penny coin, first created in the seventh century, still survives, according to The New York Times.
The slow and painful death of the penny
The penny has experienced a decline in value and use for many years. More and more frequently the coin was casually tossed into someone’s jar, or dropped in a “Take a Penny” tray at retailers. For years, people have called for the end of the penny, due to its irrelevance and the cost of making it.
In February, President Donald Trump signed an executive order that officially called for the death of the coin.
Even though pennies are no longer being minted, they won’t vanish anytime soon. There are an estimated 250 billion pennies in circulation, although many pennies don’t actually circulate, according to The Washington Post. Instead, they sit in piggy banks, car consoles, couch cushions and cash register drawers
As the last pennies slowly start to disappear, businesses will be forced to round transactions to the nearest nickel when handling cash.
Now that the penny has been ended, some people are now worried about the life of the nickel. The purchasing power of the 5-cent coin has also shrunk to almost nothing and it costs more than a dime to produce.
One penny costs about 3.7 cents to produce and a nickel costs about 13.8 cents to make, per USA Today.