U.S. Mint Prohibits Melting Down of Pennies and Nickels for Metal

With the rising prices of metal, people are beginning to realize that the pennies and nickels used every day in America are worth more melted down into metal than they are at face value. Officials at the U.S. Mint said that in recent months, they have received a number of inquiries from people asking about the value of the metal in the coins, and whether or not it is legal to melt them down and sell the metal.

Because of this worrisome trend, officials from the U.S. Mint said Wednesday that they will be putting into place rules forbidding the melting down of pennies and nickels. The new rules will also limit the number of coins that can be shipped out of the United States. Shipments of coins out of the country must be for legitimate use as coins and coin collecting purposes, and any one shipment can be worth no more than $100 in face value of the coins.

Modern pennies have 2.5% copper content, with the remainder being made of zinc. So the current worth of the metal used to make a penny is actually 1.12 cents. Add to that the cost of production, and every penny’s actual worth is 1.73 cents. Pennies made prior to 1982, which are still in circulation, contain 95% copper and only 5% zinc, so they are worth even more. Mint officials said the metal value in those coins is 2.13 cents per coin.

Nickels are even more lucrative, because each nickel is composed of 25% nickel and 75% copper. The metal alone in each coin costs 6.99 cents. When the cost of producing the coins is added, that figure jumps up to 8.34 cents of value in each 5-cent nickel.

The new regulations will be published in the Federal Register, and will go into effect as interim rules. They will not become final until the government has a chance to consider possible modifications based on public comments. The regulations propose a penalty of up to five years in prison and a fine of up to $10,000 for people convicted of violating the rules.

"We are taking this action because the nation needs its coinage for commerce," said Mint Director Edmund Moy in a statement to the media. "We don’t want to see our pennies and nickels melted down so a few individuals can take advantage of the American taxpayer."