The Value of Pennies and Nickels: Don't Shortchange Yourself

As a child, I loved saving the change my parents gave me in my hot pink plastic piggy bank. Back then, society was serious about saving. There were no exit holes in that bank. If you wanted the money, you cut into the plastic and ruined the bank...and then felt guilty for doing so. Oh, to have all those coins today!

Why? Because today's copper pennies aren't really made of copper. As the metal gained value, pennies became worth more than one cent. According to Coinflation.com , a penny minted prior to 1982 is worth about $0.022. In mid-1982, the government began issuing pennies made of zinc with copper overlay. These are currently and appropriately worth $0.01.

And so it goes for dimes and quarters. They are no longer made of silver. Since 1964, they consist of copper and nickel alloy which make them significantly lower in base value compared to the face amount. Nickels, too, are made of copper and nickel alloy. However, ninety percent of a nickel is copper. This means your nickel is currently worth $0.069.

Except for nickels (and those pre-1982 pennies), U.S. coins in circulation have been debased. This means the purchasing power is greater than the base metal value of the coin itself.

Don't start hoarding those coins yet!

Consider the U.S. Mint's response to the rise in value of these coins and the threat of removal from circulation. A rule enacted in early 2007 makes it illegal to melt the coins for scrap and limits exportation except for small amounts. These limits prevent speculators from making a profit on the base metal and preempt a shortage of the coins.

So before you spend all your pennies and nickels, consider their true value and maybe use a dime or quarter instead. You may be getting back more in change than you realize.

Sources cited: Coinflation.com

United States Mint