[Vendorsmi] A Penny Saved is a penny . . .

[Terry Eagle]

> 

> Vending Times

> 

> Issue Date: Vol. 53, No. 1, January 2013, Posted On: 1/3/2013

 

> 

> U.S. Mint Tests Cheaper Coinage, Seeks Minimal Effect On Vending

 

Emily Jed

mailto:  Emily at vendingtimes.net <mailto:mailto:%20%20Emily at vendingtimes.net>
Emily at vendingtimes.net

> 

WASHINGTON – 

 

It costs 2¢ to make and distribute a Lincoln penny, and 

more than 11¢ for a nickel, according to a new two-year study released 

by the U.S. Mint. But the agency is on a mission to find a way to 

bring the metal and production costs of U.S. coins closer to their 

actual face value, and with the least possible impact to the vending
industry.

 

The Mint has been working with a research and development consultant 

to test scores of metals and dozens of different alloys to identify 

potential cost-cutting changes to the composition and methods of 

manufacturing circulating coinage.

 

In a progress report, the Mint explained that additional R&D is 

necessary before it can recommend any changes to the current coin 

composition. Going forward, the agency said it will continue to 

develop and test potential alternative materials; conduct 

production-scale runs to validate supply chains, "manufacturability" 

and costs; and further verify the estimated costs to stakeholders that
depend on coins.

 

The Mint said in its report that vending operators are an important group
among those

stakeholders. The vending industry, which has worked 

closely with the agency, estimates a one-time upgrade of its machines 

to accept coins of the same size and weight as the current ones, but 

with a different electromagnetic signature, would cost between $700 million
and $3.5 billion.

 

Except for pennies, all current U.S. circulating coins have the 

electromagnetic properties of copper, the report says.

 

Another challenge for the Mint is the rising cost of copper, used in 

all U.S. coins, and nickel, used in all except pennies. Only four of 

the 80 metals on the periodic table -- aluminum, iron, zinc and lead, 

presently cost less than copper and nickel, according to the report.

 

The U.S. Mint is now beginning the second part of its testing to 

determne if it can produce coins that are not only cost efficient, 

but also have the same weight, durability and look as current coins.

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://nfbnet.org/pipermail/vendorsmi_nfbnet.org/attachments/20130106/c86002ef/attachment.html>