In Australia, we did away with pennies in 1992. Any item costing less than some total dollar amount plus 14, 24, 34, or 44 cents is rounded down to the nearest 5 cents. Hence, $5.94 cents is rounded down to $5.90. Total dollar amount plus 66, 76, 86, or 96 cents is rounded up to the nearest 5 cents. In this case, $5.96 becomes $6.00.
Guess how many items at the shoppes have a unit price where the price for an individual item is rounded down?
Not saying it wonโt save money but it only works to the consumers advantage when buying multiple items. And the total of those is above or below the 5 cent line.
[This message has been edited by Mike in Sydney (edited 02-10-2025).]
In Australia, we did away with pennies in 1992. Any item costing less than some total dollar amount plus 14, 24, 34, or 44 cents is rounded down to the nearest 5 cents. Hence, $5.94 cents is rounded down to $5.90. Total dollar amount plus 66, 76, 86, or 96 cents is rounded up to the nearest 5 cents. In this case, $5.96 becomes $6.00.
Guess how many items at the shoppes have a unit price where the price for an individual item is rounded down?
Not saying it wonโt save money but it only works to the consumers advantage when buying multiple items. And the total of those is above or below the 5 cent line.
Interesting. I'm not sure I trust the rounding down rule. What I can see happening is retailers actually raising the price so that rounding down doesn't end up costing them profit. I'm not there so, I can only give a opinion but, that's what I would expect.
quote
Originally posted by maryjane:
'stop PRODUCING pennies'.........
It will be a long while before the public stops USING pennies.
No doubt about that. However IMHO producing this coin when the production cost exceeds the value doesn't make sense either.
How long have they been talking about this? This is not new. I recall this coming up before as well. As Don pointed out, unless there is a drive to pull the penny from circulation its going to be around for a while.
It is being said that to mint a nickle that it costs more than a nickle.
Why are we even minting new coins every year ? We do not have a shortage of coins.
I believe new coins are being minted with different combinations of the "precious metal" each time being of cheaper value. Just look at newer pennies versus pennies from your youth. As to why, I can't answer that question. There's a huge supply of every coin out there. I still have Silver Dollars from back when my Dad was a child that he passed on down to me. They will eventually get passed on to my only grandson. Along with that jug of Wheat Pennies I've been gathering for the last 40+ years.
Rams
[This message has been edited by blackrams (edited 02-11-2025).]
Canada stopped making pennies in 2012, wow, I was only 7 but I remember that, you could take your pennies into the banks and they would pay you for them, I think stores were sending all their pennies in to get them out of circulation, pennies were basically entirely out of use/gone within a year or 2, prices are rounded to the nearest nickel, $9.98 would be $10, but $9.97 would be $9.95. actual price tags never changed or became whole numbers, stores use different numbers to designate sale status, etc. and the 99ยข is so common I'm sure they make a noticeable amount on pennies that they can't give back.
Canada stopped making pennies in 2012, wow, I was only 7 but I remember that, you could take your pennies into the banks and they would pay you for them, I think stores were sending all their pennies in to get them out of circulation, pennies were basically entirely out of use/gone within a year or 2, prices are rounded to the nearest nickel, $9.98 would be $10, but $9.97 would be $9.95. actual price tags never changed or became whole numbers, stores use different numbers to designate sale status, etc. and the 99ยข is so common I'm sure they make a noticeable amount on pennies that they can't give back.
Well, that would be one way to get copper pennies out of circulation but, I'm thinking it would take awhile. Anyone think turning all those pennies back into raw stock would bring down the price of copper? Doubtful but, was just a thought.
Originally posted by blackrams: Well, that would be one way to get copper pennies out of circulation but, I'm thinking it would take awhile. Anyone think turning all those pennies back into raw stock would bring down the price of copper? Doubtful but, was just a thought. Rams
Copper pennies ? Ha ! A Penny is not made from copper.
Copper theft is a lucrative crime. Piggy bank robberies have not been on the rise.
Interestingly, we used to be on the gold standard. Where printed money could be exchanged for gold, of which the price always increases . Do any of you have a silver certificate two dollar bill, which were issued by the U.S. government as legal tender backed by the price of silver. ?
Copper pennies ? Ha ! A Penny is not made from copper.
Copper theft is a lucrative crime. Piggy bank robberies have not been on the rise.
Interestingly, we used to be on the gold standard. Where printed money could be exchanged for gold, of which the price always increases . Do any of you have a silver certificate two dollar bill, which were issued by the U.S. government as legal tender backed by the price of silver. ?
However IMHO producing this coin when the production cost exceeds the value doesn't make sense either.
