U.S. Mint bans melting pennies, nickels. Given rising metal prices, the pennies and nickels in your pocket are worth more melted down than their face value — and that has the government worried.
U.S. Mint officials said Wednesday they were putting into place rules prohibiting the melting down of 1-cent and 5-cent coins. The rules also limit the number of coins that can be shipped out of the country.
[…]
A nickel is 25 percent nickel and 75 percent copper. The metal in one coin costs 6.99 cents for each 5-cent coin. When the Mint’s cost of producing the coins is added, the total cost for each nickel is 8.34 cents.
Modern pennies have 2.5 percent copper content with zinc making up the rest of the coin. The current copper and zinc in a penny are worth 1.12 cents. The cost of production drives the cost of each penny up to 1.73 cents.
Pennies made before 1982, which are still in circulation, would be even more lucrative to melt down because they contain 95 percent copper and only 5 percent zinc. The metal value in those coins is 2.13 cents per coin, Mint officials said. [Business Week]
At this point the profit on each individual coin is so low that you’d have to melt tons of them for it to be worthwhile. For ordinary people, this should be considered a warning to hold onto all the nickels and pennies you can get for the future, because they’ll only be getting more valuable. For example, a 1964 quarter is now worth over $2, because it was made of silver.