US Coin Production Costs Continue to Rise

According to the US Mint’s Annual Report for 2024, the production and associated costs for circulating coinage continues to rise year-on-year ¹. The two lowest denominations, the 1 (penny) and 5 (nickel) cent coins, also continue to exceed their face value to produce and distribute – ie. both record negative seigniorage. Much of the increased production costs this year have been attributed to the cost of metal acquisition, although this is far from the first time that penny and nickel costs exceed their face value.

Last year, it cost 3.69 cents for each penny to reach circulation, up 20.2% and 35.7% compared to FY 2023 (3.07 cents) and 2022 (2.72 cents), respectively. The cent had a negative seigniorage of $85.3 million in 2024, compared to a negative $86 million in 2023 and a negative $93 million in 2022.