[Vendorsmi] A Penny Saved is a penny . . .
Terry Eagle
terrydeagle at yahoo.com
Sun Jan 6 12:58:20 UTC 2013
>
> 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.
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