Top > Business > 2006 > December > 2006-12-20

US Bans Melting and Exporting of Pennies and Nickels

New regulations in the United States ban the melting and exporting of pennies and nickels. Those who disobey the law are expected to face up to 5 years in prison or pay a $10,000 fine. The reason for this new regulation is the rising prices of metals due to increased demand. Officials at the United States Mint told reporters that the new regulations ban the melting of coins and limit the amount of coins one can take out of the United States to approximately $5. The law does allow the export of up to $100 worth of coins for study and collection.

"We want to make it clear to anyone considering this that it`s not worth it," said Edmund C. Moy, director of the Mint. Officials at the mint say that replacing coins melted down for personal gain would create enormous cost for the American taxpayer.

Currently, because of the high prices of copper, nickel and zinc, the United States government pays more for the manufacture of these coins than there actual market value. The 5 cent nickel is made of 25% nickel and 75% copper. The value of the metal in one nickel is now 6.99 cents and its cost of production is 8.34 cents. A penny is made up of 2.5% copper and the remaining 97.5% is zinc. The cost of production of one cent is 1.73 cents. In pennies that were manufactured before 1982 that are still in circulation there is 95% copper and only 5% zinc, these pennies are worth 2.13 cents.