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Copper Catcher
Administrator
USA
2092 Posts |
 Posted - 06/17/2010 : 07:11:39
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Alternative Materials for One Cent Coinage
In July 1973, growing concern over both the rapidly increasing cost of copper and the rising demand for pennies compelled-the Treasury Department to initiate a Treasury Department Federal Reserve study under the direction of the Bureau of the Mint. A study committee was assigned the tasks of:
preparing a contingency plan for an alternative metal alloy for the cent;
recommending whether a strip production or strip storage facility should be incorporated in the new Denver Mint; and
analyzing demand forecasting and production control models in order to improve the accuracy of long and short term coinage forecasts.
(See Appendix A - A Study of Future Cent Demand and Materials - Project Plan).
This report is concerned with the first two objectives of the study -namely, recommendation of a new material for the penny and a discussion of the impact 6f this recommendation on plans for the new Denver Mint. A subsequent report, to be issued in approximately four months, will provide recommendations on coinage demand forecasting and production control procedures.
Background
Approximately 75 percent of the Mint's coinage production is for one-cent coins. In 1974, the Bureau of the Mint plans to produce more than 7 1/2 billion pennies requiring approximately 50 million pounds of copper. These 7 1/2 billion coins, worth $75 million in terms of face value, will cost the U.S. Treasury $66 million to produce - of which, $51 million represents the metal content at current prices. The cost of copper is threatening to increase beyond the "break-even point" for penny production and it is necessary that alternative materials for one-cent coins be seriously considered. A 95 percent copper - 5 percent zinc alloy ("penny bronze" or "gilding metal") is now utilized for pennies.
During the first eleven months of 1973, the purchase price of copper on world markets increased from 50¢ to more than $1.00 per pound. If the price were to continue to increase to beyond $1.20 per pound, the cost of producing the bronze 95 percent copper - 5 percent zinc cent, including material, labor and transportation costs, would exceed the value of the coin.
At a copper price of $1.50 per pound, the intrinsic value of the metal in the coin would exceed the face value and pennies would become an inexpensive source of copper. If this situation were to occur, demand would increase drastically beyond the Mint's production capacity. The Mint would then be unable to satisfy demand at any cost and a severe coin shortage would result.
Preliminary recommendations from the study committee for an alternative coinage material were scheduled for February 1974. However, the large savings which would accrue if the cent material were changed to a less expensive alloy, coupled with a resumption in copper price increases during October 1973 after a deescalation trend in August and September, have resulted in an accelerated research and development effort, culminating in recommendations for consideration by the Director of the Mint and the Secretary of the Treasury.
To read the rest of the story which included a summary of conclusions and recommendations go to:
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Copper Catcher
Administrator
USA
2092 Posts |
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
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Coinsgunsmetals
Penny Sorter Member
USA
28 Posts |
Posted - 06/23/2010 : 23:23:53
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| I don't like the idea of my pennies and soda cans being made out of the same metal. |
-The Great- |
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brian0918
Penny Collector Member
USA
315 Posts |
Posted - 06/24/2010 : 08:35:26
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I did a lot of research on the 1974 cent varieties, including getting You must be logged in to see this link. (which has an aluminum cent on its cover), and a lot of other documents from experts, because I have a 1974 cent that appeared to be bronze- or brass-clad, that my mom got in change a long time ago.
I had a mass spectrometry done on it at my school's lab, and it turned out to be just a gold-plated penny. |
"The man who speaks to you of sacrifice, speaks of slaves and masters. And intends to be the master." -- Ayn Rand
Searched: $2230 Nickels; Liberty: 1; Buffalo: 4; War: 20; 2009: 2; 2010D: 8 |
Edited by - brian0918 on 06/24/2010 08:36:54 |
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NiBullionCu
Penny Pincher Member
USA
168 Posts |
Posted - 06/25/2010 : 10:56:18
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Technology and price have passed aluminum by.
The new composition will be the same as current Canadian cents:
Composition: 94% steel, 1.5% nickel, 4.5% copper plating or copper plated zinc
Weight (g): 2.35
They can then enjoy economy-of-scale of using the same blanks as Canada.
any other decision does not make economic sense. |
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The 96 percent aluminum one cent coin coming soon!
Forum Locked
At least if we switch, you know that Gresham's Law will exert it's effect and accelerate the disappearance of circulating copper cents... and we have a head start 
